ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
NASDAQ:ENSG - Nasdaq - US29358P1012 - Common Stock
Taking everything into account, ENSG scores 6 out of 10 in our fundamental rating. ENSG was compared to 108 industry peers in the Health Care Providers & Services industry. ENSG has an excellent profitability rating, but there are some minor concerns on its financial health. ENSG is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make ENSG a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
ENSG had positive earnings in the past year.
In the past year ENSG had a positive cash flow from operations.
In the past 5 years ENSG has always been profitable.
Each year in the past 5 years ENSG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.18%, ENSG belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
The Return On Equity of ENSG (13.73%) is better than 83.18% of its industry peers.
The Return On Invested Capital of ENSG (5.62%) is better than 64.49% of its industry peers.
ENSG had an Average Return On Invested Capital over the past 3 years of 7.46%. This is in line with the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 13.73% | ||
| ROIC | 5.62% |
ROA(3y)6.12%
ROA(5y)5.95%
ROE(3y)17.04%
ROE(5y)17.77%
ROIC(3y)7.46%
ROIC(5y)7.21%
1.3 Margins
The Profit Margin of ENSG (5.84%) is better than 84.11% of its industry peers.
ENSG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 6.82%, ENSG is in the better half of the industry, outperforming 73.83% of the companies in the same industry.
In the last couple of years the Operating Margin of ENSG has grown nicely.
ENSG has a Gross Margin (21.19%) which is comparable to the rest of the industry.
ENSG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 5.84% | ||
| GM | 21.19% |
OM growth 3Y-9.67%
OM growth 5Y7.63%
PM growth 3Y-7.51%
PM growth 5Y1.29%
GM growth 3Y-1.81%
GM growth 5Y2.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENSG is destroying value.
Compared to 1 year ago, ENSG has more shares outstanding
ENSG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ENSG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.24 indicates that ENSG is not in any danger for bankruptcy at the moment.
ENSG has a better Altman-Z score (3.24) than 71.03% of its industry peers.
The Debt to FCF ratio of ENSG is 1.53, which is an excellent value as it means it would take ENSG, only 1.53 years of fcf income to pay off all of its debts.
ENSG's Debt to FCF ratio of 1.53 is amongst the best of the industry. ENSG outperforms 86.92% of its industry peers.
ENSG has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, ENSG is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.61
WACC9.14%
2.3 Liquidity
ENSG has a Current Ratio of 1.56. This is a normal value and indicates that ENSG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.56, ENSG perfoms like the industry average, outperforming 57.94% of the companies in the same industry.
ENSG has a Quick Ratio of 1.56. This is a normal value and indicates that ENSG is financially healthy and should not expect problems in meeting its short term obligations.
ENSG has a Quick ratio of 1.56. This is comparable to the rest of the industry: ENSG outperforms 59.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.25% over the past year.
Measured over the past years, ENSG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.34% on average per year.
Looking at the last year, ENSG shows a quite strong growth in Revenue. The Revenue has grown by 15.46% in the last year.
The Revenue has been growing by 16.28% on average over the past years. This is quite good.
EPS 1Y (TTM)15.25%
EPS 3Y15.08%
EPS 5Y20.34%
EPS Q2Q%15.83%
Revenue 1Y (TTM)15.46%
Revenue growth 3Y15.78%
Revenue growth 5Y16.28%
Sales Q2Q%14.99%
3.2 Future
ENSG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.40% yearly.
ENSG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
EPS Next Y17.4%
EPS Next 2Y14.67%
EPS Next 3Y13.4%
EPS Next 5YN/A
Revenue Next Year14.32%
Revenue Next 2Y13.04%
Revenue Next 3Y11.77%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ENSG is valuated quite expensively with a Price/Earnings ratio of 25.86.
ENSG's Price/Earnings ratio is a bit cheaper when compared to the industry. ENSG is cheaper than 62.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.94. ENSG is around the same levels.
A Price/Forward Earnings ratio of 21.81 indicates a rather expensive valuation of ENSG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENSG indicates a somewhat cheap valuation: ENSG is cheaper than 63.55% of the companies listed in the same industry.
ENSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
ENSG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENSG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.6 | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
ENSG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ENSG may justify a higher PE ratio.
A more expensive valuation may be justified as ENSG's earnings are expected to grow with 13.40% in the coming years.
PEG (NY)1.49
PEG (5Y)1.27
EPS Next 2Y14.67%
EPS Next 3Y13.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, ENSG is not a good candidate for dividend investing.
ENSG's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.28, ENSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of ENSG has a limited annual growth rate of 5.08%.
ENSG has paid a dividend for at least 10 years, which is a reliable track record.
ENSG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.08%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ENSG pays out 5.64% of its income as dividend. This is a sustainable payout ratio.
The dividend of ENSG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.64%
EPS Next 2Y14.67%
EPS Next 3Y13.4%
ENSIGN GROUP INC/THE
NASDAQ:ENSG (1/17/2025, 8:00:01 PM)
After market: 135.05 -1.74 (-1.27%)136.79
+0.46 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.66%
Inst Owner Change-0.08%
Ins Owners3.28%
Ins Owner Change0.2%
Market Cap7.84B
Analysts83.33
Price Target172.89 (26.39%)
Short Float %4.61%
Short Ratio6.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.23
Dividend Growth(5Y)5.08%
DP5.64%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.92%
Min EPS beat(2)-1.11%
Max EPS beat(2)-0.73%
EPS beat(4)0
Avg EPS beat(4)-1.06%
Min EPS beat(4)-1.58%
Max EPS beat(4)-0.73%
EPS beat(8)1
Avg EPS beat(8)-0.79%
EPS beat(12)1
Avg EPS beat(12)-0.85%
EPS beat(16)3
Avg EPS beat(16)-0.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-0.78%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)2
Avg Revenue beat(16)-1.45%
PT rev (1m)0%
PT rev (3m)8.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 21.81 | ||
| P/S | 1.91 | ||
| P/FCF | 81.6 | ||
| P/OCF | 23.61 | ||
| P/B | 4.49 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 20.42 |
EPS(TTM)5.29
EY3.87%
EPS(NY)6.27
Fwd EY4.59%
FCF(TTM)1.68
FCFY1.23%
OCF(TTM)5.79
OCFY4.24%
SpS71.7
BVpS30.49
TBVpS29.03
PEG (NY)1.49
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 13.73% | ||
| ROCE | 7.26% | ||
| ROIC | 5.62% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 6.76% | ||
| OM | 6.82% | ||
| PM (TTM) | 5.84% | ||
| GM | 21.19% | ||
| FCFM | 2.34% |
ROA(3y)6.12%
ROA(5y)5.95%
ROE(3y)17.04%
ROE(5y)17.77%
ROIC(3y)7.46%
ROIC(5y)7.21%
ROICexc(3y)8.54%
ROICexc(5y)8.15%
ROICexgc(3y)8.82%
ROICexgc(5y)8.42%
ROCE(3y)9.65%
ROCE(5y)9.32%
ROICexcg growth 3Y-12.26%
ROICexcg growth 5Y-4.48%
ROICexc growth 3Y-12.06%
ROICexc growth 5Y-1.68%
OM growth 3Y-9.67%
OM growth 5Y7.63%
PM growth 3Y-7.51%
PM growth 5Y1.29%
GM growth 3Y-1.81%
GM growth 5Y2.49%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 291.99% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 40.04 | ||
| Cash Conversion | 91.93% | ||
| Profit Quality | 40.02% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.24 |
F-Score6
WACC9.14%
ROIC/WACC0.61
Cap/Depr(3y)272.04%
Cap/Depr(5y)274.21%
Cap/Sales(3y)5.58%
Cap/Sales(5y)6.07%
Profit Quality(3y)65.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.25%
EPS 3Y15.08%
EPS 5Y20.34%
EPS Q2Q%15.83%
EPS Next Y17.4%
EPS Next 2Y14.67%
EPS Next 3Y13.4%
EPS Next 5YN/A
Revenue 1Y (TTM)15.46%
Revenue growth 3Y15.78%
Revenue growth 5Y16.28%
Sales Q2Q%14.99%
Revenue Next Year14.32%
Revenue Next 2Y13.04%
Revenue Next 3Y11.77%
Revenue Next 5YN/A
EBIT growth 1Y-8.92%
EBIT growth 3Y4.59%
EBIT growth 5Y25.14%
EBIT Next Year40.18%
EBIT Next 3Y20.23%
EBIT Next 5YN/A
FCF growth 1Y72.75%
FCF growth 3Y-12.07%
FCF growth 5Y23.69%
OCF growth 1Y13.12%
OCF growth 3Y0.29%
OCF growth 5Y12.36%