ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
NASDAQ:ENSG - Nasdaq - US29358P1012 - Common Stock - Currency: USD
ENSG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. ENSG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ENSG is not valued too expensively and it also shows a decent growth rate. These ratings could make ENSG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ENSG was profitable.
In the past year ENSG had a positive cash flow from operations.
Each year in the past 5 years ENSG has been profitable.
In the past 5 years ENSG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.38%, ENSG belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
The Return On Equity of ENSG (16.22%) is better than 82.35% of its industry peers.
ENSG's Return On Invested Capital of 7.04% is fine compared to the rest of the industry. ENSG outperforms 67.65% of its industry peers.
ENSG had an Average Return On Invested Capital over the past 3 years of 6.92%. This is below the industry average of 9.13%.
The last Return On Invested Capital (7.04%) for ENSG is above the 3 year average (6.92%), which is a sign of increasing profitability.
| 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
The Profit Margin of ENSG (6.99%) is better than 82.35% 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 75.49% of its industry peers.
ENSG's Operating Margin has improved in the last couple of years.
ENSG has a Gross Margin (21.31%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENSG is destroying value.
The number of shares outstanding for ENSG has been increased compared to 1 year ago.
The number of shares outstanding for ENSG has been increased compared to 5 years ago.
The debt/assets ratio for ENSG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.31 indicates that ENSG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.31, ENSG is doing good in the industry, outperforming 70.59% of the companies in the same industry.
ENSG has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
The Debt to FCF ratio of ENSG (0.77) is better than 87.25% 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.
With a decent Debt to Equity ratio value of 0.08, ENSG is doing good in the industry, outperforming 75.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.79
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.56 indicates that ENSG should not have too much problems paying 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.
The Quick ratio of ENSG (1.56) 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
The Earnings Per Share has grown by an nice 15.79% over the past year.
Measured over the past years, ENSG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.68% on average per year.
The Revenue has grown by 14.24% in the past year. This is quite good.
ENSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.91% yearly.
EPS 1Y (TTM)15.79%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%16.92%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%16.12%
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 12.50% yearly.
ENSG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.88% yearly.
EPS Next Y15.83%
EPS Next 2Y13.25%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue Next Year14.35%
Revenue Next 2Y11.75%
Revenue Next 3Y10.88%
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
A Price/Earnings ratio of 23.04 indicates a rather expensive valuation of ENSG.
Based on the Price/Earnings ratio, ENSG is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ENSG to the average of the S&P500 Index (28.10), we can say ENSG is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.68, ENSG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ENSG is valued a bit cheaper than 69.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, ENSG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENSG.
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 | 40.1 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
The 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 12.50% in the coming years.
PEG (NY)1.46
PEG (5Y)1.17
EPS Next 2Y13.25%
EPS Next 3Y12.5%
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 2.58, ENSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.19, ENSG pays less dividend than the S&P500 average, which is at 2.43.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y13.25%
EPS Next 3Y12.5%
131.78
-0.54 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.82%
Inst Owner Change0.22%
Ins Owners3.38%
Ins Owner Change4.91%
Market Cap7.58B
Analysts81.82
Price Target169.12 (28.34%)
Short Float %4.5%
Short Ratio5.67
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-Date
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)0.59%
PT rev (3m)0.48%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 18.68 | ||
| P/S | 1.78 | ||
| P/FCF | 40.1 | ||
| P/OCF | 21.82 | ||
| P/B | 4.12 | ||
| P/tB | 4.37 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)5.72
EY4.34%
EPS(NY)7.05
Fwd EY5.35%
FCF(TTM)3.29
FCFY2.49%
OCF(TTM)6.04
OCFY4.58%
SpS74.11
BVpS31.96
TBVpS30.12
PEG (NY)1.46
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 | 3.31 |
F-Score7
WACC8.87%
ROIC/WACC0.79
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)15.79%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%16.92%
EPS Next Y15.83%
EPS Next 2Y13.25%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%16.12%
Revenue Next Year14.35%
Revenue Next 2Y11.75%
Revenue Next 3Y10.88%
Revenue Next 5YN/A
EBIT growth 1Y40.28%
EBIT growth 3Y11.4%
EBIT growth 5Y22.76%
EBIT Next Year37.96%
EBIT Next 3Y18.83%
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%