ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
USA - NASDAQ:ENSG - US29358P1012 - Common Stock
185.4 USD
+3.36 (+1.85%)
185.4 USD
0 (0%)
Taking everything into account, ENSG scores 6 out of 10 in our fundamental rating. ENSG was compared to 101 industry peers in the Health Care Providers & Services industry. ENSG gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ENSG is valued expensive at the moment. With these ratings, ENSG could be worth investigating further 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.
ENSG had positive earnings in each of the past 5 years.
Each year in the past 5 years ENSG had a positive operating cash flow.
1.2 Ratios
ENSG has a Return On Assets of 6.55%. This is amongst the best in the industry. ENSG outperforms 84.16% of its industry peers.
With an excellent Return On Equity value of 16.00%, ENSG belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
The Return On Invested Capital of ENSG (7.30%) is better than 71.29% 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 9.33%.
The last Return On Invested Capital (7.30%) for ENSG is above the 3 year average (6.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 16% | ||
| ROIC | 7.3% |
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 has a better Profit Margin (6.99%) than 84.16% of its industry peers.
ENSG's Profit Margin has improved in the last couple of years.
The Operating Margin of ENSG (8.57%) is better than 75.25% 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 21.32%, ENSG is in line with its industry, outperforming 43.56% of the companies in the same industry.
In the last couple of years the Gross Margin of ENSG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.57% | ||
| PM (TTM) | 6.99% | ||
| GM | 21.32% |
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.
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
ENSG has an Altman-Z score of 3.89. This indicates that ENSG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ENSG (3.89) is better than 72.28% of its industry peers.
The Debt to FCF ratio of ENSG is 0.42, which is an excellent value as it means it would take ENSG, only 0.42 years of fcf income to pay off all of its debts.
ENSG's Debt to FCF ratio of 0.42 is amongst the best of the industry. ENSG outperforms 92.08% of its industry peers.
ENSG has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
ENSG has a better Debt to Equity ratio (0.07) than 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.85
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ENSG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.41, ENSG perfoms like the industry average, outperforming 46.53% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that ENSG should not have too much problems paying its short term obligations.
The Quick ratio of ENSG (1.41) 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 | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.45% 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 16.31% in the past year. This is quite good.
The Revenue has been growing by 15.91% on average over the past years. This is quite good.
EPS 1Y (TTM)17.45%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%20.45%
Revenue 1Y (TTM)16.31%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%18.48%
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 13.32% yearly.
Based on estimates for the next years, ENSG will show a quite strong growth in Revenue. The Revenue will grow by 12.79% on average per year.
EPS Next Y18.58%
EPS Next 2Y15.17%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue Next Year17.32%
Revenue Next 2Y13.92%
Revenue Next 3Y12.79%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.95, which means the current valuation is very expensive for ENSG.
ENSG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.69, ENSG is valued at the same level.
The Price/Forward Earnings ratio is 25.41, which means the current valuation is very expensive for ENSG.
ENSG's Price/Forward Earnings is on the same level as the industry average.
ENSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.95 | ||
| Fwd PE | 25.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENSG.
The rest of the industry has a similar Price/Free Cash Flow ratio as ENSG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.31 | ||
| EV/EBITDA | 20.79 |
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 13.32% in the coming years.
PEG (NY)1.67
PEG (5Y)1.57
EPS Next 2Y15.17%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, ENSG is not a good candidate for dividend investing.
ENSG's Dividend Yield is a higher than the industry average which is at 2.45.
With a Dividend Yield of 0.14, ENSG pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
4.35% of the earnings are spent on dividend by ENSG. This is a low number and sustainable payout ratio.
ENSG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.35%
EPS Next 2Y15.17%
EPS Next 3Y13.32%
185.4
+3.36 (+1.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change-1%
Ins Owners1.4%
Ins Owner Change-1.05%
Market Cap10.70B
Analysts83.64
Price Target180.95 (-2.4%)
Short Float %3.3%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.24
Dividend Growth(5Y)4.75%
DP4.35%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.23%
Min EPS beat(2)-0.04%
Max EPS beat(2)0.5%
EPS beat(4)1
Avg EPS beat(4)-0.48%
Min EPS beat(4)-1.26%
Max EPS beat(4)0.5%
EPS beat(8)1
Avg EPS beat(8)-0.77%
EPS beat(12)2
Avg EPS beat(12)-0.66%
EPS beat(16)2
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-0.94%
Revenue beat(8)0
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-0.89%
Revenue beat(16)2
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)6.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.95 | ||
| Fwd PE | 25.41 | ||
| P/S | 2.32 | ||
| P/FCF | 31.31 | ||
| P/OCF | 23.11 | ||
| P/B | 5.3 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 20.79 |
EPS(TTM)5.99
EY3.23%
EPS(NY)7.3
Fwd EY3.93%
FCF(TTM)5.92
FCFY3.19%
OCF(TTM)8.02
OCFY4.33%
SpS79.98
BVpS34.97
TBVpS33.16
PEG (NY)1.67
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 16% | ||
| ROCE | 9.47% | ||
| ROIC | 7.3% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 8.35% | ||
| OM | 8.57% | ||
| PM (TTM) | 6.99% | ||
| GM | 21.32% | ||
| FCFM | 7.4% |
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-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.42 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 129.01% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 55.36 | ||
| Cash Conversion | 94.59% | ||
| Profit Quality | 105.84% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.89 |
F-Score6
WACC8.59%
ROIC/WACC0.85
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)17.45%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%20.45%
EPS Next Y18.58%
EPS Next 2Y15.17%
EPS Next 3Y13.32%
EPS Next 5YN/A
Revenue 1Y (TTM)16.31%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%18.48%
Revenue Next Year17.32%
Revenue Next 2Y13.92%
Revenue Next 3Y12.79%
Revenue Next 5YN/A
EBIT growth 1Y46%
EBIT growth 3Y11.4%
EBIT growth 5Y22.76%
EBIT Next Year42.78%
EBIT Next 3Y20.69%
EBIT Next 5YN/A
FCF growth 1Y142.14%
FCF growth 3Y20.53%
FCF growth 5YN/A
OCF growth 1Y48.93%
OCF growth 3Y7.99%
OCF growth 5Y12.55%