ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
NASDAQ:ENSG - Nasdaq - US29358P1012 - Common Stock - Currency: USD
Overall ENSG gets a fundamental rating of 7 out of 10. We evaluated ENSG against 108 industry peers in the Health Care Providers & Services industry. ENSG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ENSG has a correct valuation and a medium growth rate. With these ratings, ENSG could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ENSG had positive earnings in the past year.
ENSG had a positive operating cash flow in the past year.
In the past 5 years ENSG has always been profitable.
In the past 5 years ENSG always reported a positive cash flow from operatings.
1.2 Ratios
ENSG has a better Return On Assets (6.38%) than 86.92% of its industry peers.
ENSG has a better Return On Equity (16.22%) than 87.85% of its industry peers.
With a decent Return On Invested Capital value of 7.04%, ENSG is doing good in the industry, outperforming 71.03% of the companies in the same industry.
ENSG had an Average Return On Invested Capital over the past 3 years of 6.92%. This is in line with the industry average of 8.14%.
The 3 year average ROIC (6.92%) for ENSG is below the current ROIC(7.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 16.22% | ||
| ROIC | 7.04% |
ROA(3y)5.97%
ROA(5y)6.29%
ROE(3y)16.09%
ROE(5y)17.64%
ROIC(3y)6.92%
ROIC(5y)7.62%
1.3 Margins
ENSG's Profit Margin of 6.99% is amongst the best of the industry. ENSG outperforms 85.98% of its industry peers.
ENSG's Profit Margin has improved in the last couple of years.
The Operating Margin of ENSG (8.41%) is better than 78.50% of its industry peers.
In the last couple of years the Operating Margin of ENSG has grown nicely.
Looking at the Gross Margin, with a value of 21.31%, ENSG is in line with its industry, outperforming 41.12% of the companies in the same industry.
ENSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.41% | ||
| PM (TTM) | 6.99% | ||
| GM | 21.31% |
OM growth 3Y-5.18%
OM growth 5Y5.91%
PM growth 3Y-1.91%
PM growth 5Y5.21%
GM growth 3Y-3.36%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENSG is destroying value.
ENSG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ENSG has more shares outstanding
The debt/assets ratio for ENSG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.25 indicates that ENSG is not in any danger for bankruptcy at the moment.
ENSG has a better Altman-Z score (3.25) than 70.09% of its industry peers.
The Debt to FCF ratio of ENSG is 0.77, which is an excellent value as it means it would take ENSG, only 0.77 years of fcf income to pay off all of its debts.
ENSG has a better Debt to FCF ratio (0.77) than 90.65% 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 73.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.78
WACC9.03%
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.
ENSG has a Current ratio (1.56) which is in line with its industry peers.
A Quick Ratio of 1.56 indicates that ENSG should not have too much problems paying its short term obligations.
ENSG has a Quick ratio (1.56) which is comparable to the rest of the industry.
The current and quick ratio evaluation for ENSG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
ENSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.30%, which is quite good.
The Earnings Per Share has been growing by 19.68% on average over the past years. This is quite good.
Looking at the last year, ENSG shows a quite strong growth in Revenue. The Revenue has grown by 14.24% in the last year.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)15.3%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%16.41%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%15.49%
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 12.01% yearly.
The Revenue is expected to grow by 11.05% on average over the next years. This is quite good.
EPS Next Y15.91%
EPS Next 2Y12.97%
EPS Next 3Y12.01%
EPS Next 5YN/A
Revenue Next Year12.44%
Revenue Next 2Y10.83%
Revenue Next 3Y11.05%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 22.97, which indicates a rather expensive current valuation of ENSG.
Compared to the rest of the industry, the Price/Earnings ratio of ENSG indicates a somewhat cheap valuation: ENSG is cheaper than 65.42% of the companies listed in the same industry.
ENSG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 19.82, ENSG is valued on the expensive side.
ENSG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ENSG is cheaper than 65.42% of the companies in the same industry.
ENSG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
ENSG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENSG indicates a somewhat cheap valuation: ENSG is cheaper than 63.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.42 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
ENSG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ENSG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ENSG's earnings are expected to grow with 12.01% in the coming years.
PEG (NY)1.44
PEG (5Y)1.17
EPS Next 2Y12.97%
EPS Next 3Y12.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, ENSG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.95, ENSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, ENSG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of ENSG has a limited annual growth rate of 4.75%.
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)4.75%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ENSG pays out 4.59% 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.
DP4.59%
EPS Next 2Y12.97%
EPS Next 3Y12.01%
126.34
-1.13 (-0.89%)
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-1.44%
Ins Owners3.28%
Ins Owner Change4.99%
Market Cap7.26B
Analysts83.33
Price Target168.3 (33.21%)
Short Float %4.45%
Short Ratio6.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.24
Dividend Growth(5Y)4.75%
DP4.59%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.19%
Min EPS beat(2)-1.26%
Max EPS beat(2)-1.11%
EPS beat(4)0
Avg EPS beat(4)-0.98%
Min EPS beat(4)-1.26%
Max EPS beat(4)-0.73%
EPS beat(8)1
Avg EPS beat(8)-0.72%
EPS beat(12)1
Avg EPS beat(12)-0.86%
EPS beat(16)2
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.94%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-0.85%
Revenue beat(12)2
Avg Revenue beat(12)-0.86%
Revenue beat(16)2
Avg Revenue beat(16)-1.29%
PT rev (1m)-2.65%
PT rev (3m)1.6%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)5.48%
EPS NY rev (1m)1.64%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)7.07%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 19.82 | ||
| P/S | 1.7 | ||
| P/FCF | 38.42 | ||
| P/OCF | 20.91 | ||
| P/B | 3.95 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | 15.55 |
EPS(TTM)5.5
EY4.35%
EPS(NY)6.38
Fwd EY5.05%
FCF(TTM)3.29
FCFY2.6%
OCF(TTM)6.04
OCFY4.78%
SpS74.15
BVpS31.97
TBVpS30.14
PEG (NY)1.44
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 16.22% | ||
| ROCE | 9.13% | ||
| ROIC | 7.04% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 8.39% | ||
| OM | 8.41% | ||
| PM (TTM) | 6.99% | ||
| GM | 21.31% | ||
| FCFM | 4.43% |
ROA(3y)5.97%
ROA(5y)6.29%
ROE(3y)16.09%
ROE(5y)17.64%
ROIC(3y)6.92%
ROIC(5y)7.62%
ROICexc(3y)7.98%
ROICexc(5y)8.73%
ROICexgc(3y)8.24%
ROICexgc(5y)9.03%
ROCE(3y)8.98%
ROCE(5y)9.88%
ROICexcg growth 3Y-5.91%
ROICexcg growth 5Y9.74%
ROICexc growth 3Y-5.86%
ROICexc growth 5Y9.75%
OM growth 3Y-5.18%
OM growth 5Y5.91%
PM growth 3Y-1.91%
PM growth 5Y5.21%
GM growth 3Y-3.36%
GM growth 5Y0.9%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 188.07% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 50.73 | ||
| Cash Conversion | 78.47% | ||
| Profit Quality | 63.41% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.25 |
F-Score7
WACC9.03%
ROIC/WACC0.78
Cap/Depr(3y)234.85%
Cap/Depr(5y)228.42%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.72%
Profit Quality(3y)68.27%
Profit Quality(5y)87.01%
High Growth Momentum
Growth
EPS 1Y (TTM)15.3%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%16.41%
EPS Next Y15.91%
EPS Next 2Y12.97%
EPS Next 3Y12.01%
EPS Next 5YN/A
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%15.49%
Revenue Next Year12.44%
Revenue Next 2Y10.83%
Revenue Next 3Y11.05%
Revenue Next 5YN/A
EBIT growth 1Y40.28%
EBIT growth 3Y11.4%
EBIT growth 5Y22.76%
EBIT Next Year34.26%
EBIT Next 3Y17.6%
EBIT Next 5YN/A
FCF growth 1Y-6.78%
FCF growth 3Y20.53%
FCF growth 5YN/A
OCF growth 1Y-7.83%
OCF growth 3Y7.99%
OCF growth 5Y12.55%