ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
USA - NASDAQ:ENSG - US29358P1012 - Common Stock
171.55 USD
-0.95 (-0.55%)
171.55 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ENSG. ENSG was compared to 101 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. While showing a medium growth rate, ENSG is valued expensive at the moment. These ratings would make ENSG suitable 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.
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 (6.55%) than 85.15% of its industry peers.
ENSG has a better Return On Equity (16.00%) than 85.15% of its industry peers.
With a decent Return On Invested Capital value of 7.30%, ENSG is doing good in the industry, outperforming 72.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENSG is below the industry average of 9.19%.
The 3 year average ROIC (6.92%) for ENSG is below the current ROIC(7.30%), indicating increased profibility in the last year.
| 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 Profit Margin of 6.99%. This is amongst the best in the industry. ENSG outperforms 85.15% of its industry peers.
ENSG's Profit Margin has improved in the last couple of years.
ENSG has a better Operating Margin (8.57%) than 76.24% of its industry peers.
ENSG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.32%, ENSG is in line with its industry, outperforming 44.55% 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 | 8.57% | ||
| 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.
The number of shares outstanding for ENSG has been increased compared to 5 years ago.
ENSG has a better debt/assets ratio than last year.
2.2 Solvency
ENSG has an Altman-Z score of 3.78. This indicates that ENSG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ENSG (3.78) is better than 71.29% of its industry peers.
ENSG has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
The Debt to FCF ratio of ENSG (0.42) is better than 92.08% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that ENSG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, ENSG is doing good in the industry, outperforming 78.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.83
WACC8.76%
2.3 Liquidity
ENSG has a Current Ratio of 1.41. This is a normal value and indicates that ENSG is financially healthy and should not expect problems in meeting its short term obligations.
ENSG's Current ratio of 1.41 is in line compared to the rest of the industry. ENSG outperforms 45.54% of its industry peers.
A Quick Ratio of 1.41 indicates that ENSG should not have too much problems paying its short term obligations.
ENSG has a Quick ratio (1.41) which is in line with its industry peers.
ENSG does not score too well on the current and quick ratio evaluation. However, as it has 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.
ENSG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.68% yearly.
Looking at the last year, ENSG shows a quite strong growth in Revenue. The Revenue has grown by 16.31% in the last year.
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)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.
The Revenue is expected to grow by 12.79% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
ENSG is valuated quite expensively with a Price/Earnings ratio of 28.64.
The rest of the industry has a similar Price/Earnings ratio as ENSG.
Compared to an average S&P500 Price/Earnings ratio of 27.67, ENSG is valued at the same level.
A Price/Forward Earnings ratio of 23.52 indicates a rather expensive valuation of ENSG.
ENSG's Price/Forward Earnings ratio is in line with the industry average.
ENSG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
ENSG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ENSG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.97 | ||
| EV/EBITDA | 19.67 |
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.
ENSG's earnings are expected to grow with 13.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)1.46
EPS Next 2Y15.17%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, ENSG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.41, ENSG pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.15, ENSG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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 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.
The dividend of ENSG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.35%
EPS Next 2Y15.17%
EPS Next 3Y13.32%
171.55
-0.95 (-0.55%)
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 Change0.71%
Ins Owners1.4%
Ins Owner Change-1.05%
Market Cap9.90B
Analysts83.33
Price Target180.95 (5.48%)
Short Float %3.28%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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)2.54%
PT rev (3m)6.74%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.64 | ||
| Fwd PE | 23.52 | ||
| P/S | 2.14 | ||
| P/FCF | 28.97 | ||
| P/OCF | 21.38 | ||
| P/B | 4.91 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)5.99
EY3.49%
EPS(NY)7.3
Fwd EY4.25%
FCF(TTM)5.92
FCFY3.45%
OCF(TTM)8.02
OCFY4.68%
SpS79.98
BVpS34.97
TBVpS33.16
PEG (NY)1.54
PEG (5Y)1.46
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 | 3.78 |
F-Score6
WACC8.76%
ROIC/WACC0.83
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%