ENSIGN GROUP INC/THE (ENSG) Stock Fundamental Analysis
USA - NASDAQ:ENSG - US29358P1012 - Common Stock
178.5 USD
+0.94 (+0.53%)
178.5 USD
0 (0%)
Overall ENSG gets a fundamental rating of 7 out of 10. We evaluated ENSG against 100 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 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.
ENSG had positive earnings in each of the past 5 years.
ENSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.53%, ENSG belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
ENSG's Return On Equity of 15.96% is amongst the best of the industry. ENSG outperforms 83.00% of its industry peers.
With a decent Return On Invested Capital value of 7.29%, ENSG is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ENSG is below the industry average of 9.40%.
The 3 year average ROIC (6.91%) for ENSG is below the current ROIC(7.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 15.96% | ||
| ROIC | 7.29% |
ROA(3y)5.96%
ROA(5y)6.28%
ROE(3y)16.08%
ROE(5y)17.63%
ROIC(3y)6.91%
ROIC(5y)7.61%
1.3 Margins
Looking at the Profit Margin, with a value of 6.98%, ENSG belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
ENSG's Profit Margin has improved in the last couple of years.
ENSG has a better Operating Margin (8.56%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of ENSG has grown nicely.
With a Gross Margin value of 21.32%, ENSG perfoms like the industry average, outperforming 43.00% 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 | 8.56% | ||
| PM (TTM) | 6.98% | ||
| GM | 21.32% |
OM growth 3Y-5.2%
OM growth 5Y5.89%
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.
The number of shares outstanding for ENSG remains at a similar level compared to 1 year ago.
The number of shares outstanding for ENSG has been increased compared to 5 years ago.
Compared to 1 year ago, ENSG has an improved debt to assets ratio.
2.2 Solvency
ENSG has an Altman-Z score of 3.84. This indicates that ENSG is financially healthy and has little risk of bankruptcy at the moment.
ENSG has a Altman-Z score of 3.84. This is in the better half of the industry: ENSG outperforms 75.00% 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.
With an excellent Debt to FCF ratio value of 0.42, ENSG belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that ENSG is not too dependend on debt financing.
The Debt to Equity ratio of ENSG (0.07) is better than 77.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.81
WACC9.04%
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.
With a Current ratio value of 1.41, ENSG perfoms like the industry average, outperforming 49.00% 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.
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
ENSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.96%, which is quite good.
The Earnings Per Share has been growing by 19.68% on average over the past years. This is quite good.
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)17.96%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%17.99%
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%19.84%
3.2 Future
Based on estimates for the next years, ENSG will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.30% on average per year.
The Revenue is expected to grow by 12.90% on average over the next years. This is quite good.
EPS Next Y18.95%
EPS Next 2Y15.41%
EPS Next 3Y13.3%
EPS Next 5YN/A
Revenue Next Year17.73%
Revenue Next 2Y14.23%
Revenue Next 3Y12.9%
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
Based on the Price/Earnings ratio of 28.61, the valuation of ENSG can be described as expensive.
ENSG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.51, ENSG is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.37, the valuation of ENSG can be described as rather expensive.
ENSG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ENSG to the average of the S&P500 Index (34.98), we can say ENSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ENSG.
ENSG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.12 | ||
| EV/EBITDA | 20.28 |
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 13.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)1.45
EPS Next 2Y15.41%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
ENSG has a yearly dividend return of 0.14%, which is pretty low.
ENSG's Dividend Yield is a higher than the industry average which is at 2.57.
With a Dividend Yield of 0.14, ENSG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
The dividend of ENSG has a limited annual growth rate of 5.26%.
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)5.26%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
4.47% 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.
DP4.47%
EPS Next 2Y15.41%
EPS Next 3Y13.3%
178.5
+0.94 (+0.53%)
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 Change2.69%
Ins Owners1.4%
Ins Owner Change-1.51%
Market Cap10.30B
Revenue(TTM)4.26B
Net Income(TTM)322.00M
Analysts83.64
Price Target186.05 (4.23%)
Short Float %3.09%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.25
Dividend Growth(5Y)5.26%
DP4.47%
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)2.82%
PT rev (3m)6.46%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 24.37 | ||
| P/S | 2.23 | ||
| P/FCF | 30.12 | ||
| P/OCF | 22.25 | ||
| P/B | 5.11 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 20.28 |
EPS(TTM)6.24
EY3.5%
EPS(NY)7.33
Fwd EY4.1%
FCF(TTM)5.93
FCFY3.32%
OCF(TTM)8.02
OCFY4.5%
SpS79.98
BVpS34.96
TBVpS33.15
PEG (NY)1.51
PEG (5Y)1.45
Graham Number70.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 15.96% | ||
| ROCE | 9.46% | ||
| ROIC | 7.29% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 8.34% | ||
| OM | 8.56% | ||
| PM (TTM) | 6.98% | ||
| GM | 21.32% | ||
| FCFM | 7.41% |
ROA(3y)5.96%
ROA(5y)6.28%
ROE(3y)16.08%
ROE(5y)17.63%
ROIC(3y)6.91%
ROIC(5y)7.61%
ROICexc(3y)7.97%
ROICexc(5y)8.72%
ROICexgc(3y)8.22%
ROICexgc(5y)9.02%
ROCE(3y)8.97%
ROCE(5y)9.87%
ROICexgc growth 3Y-5.94%
ROICexgc growth 5Y9.72%
ROICexc growth 3Y-5.88%
ROICexc growth 5Y9.73%
OM growth 3Y-5.2%
OM growth 5Y5.89%
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 | 128.72% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 55.32 | ||
| Cash Conversion | 94.68% | ||
| Profit Quality | 106.21% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.84 |
F-Score6
WACC9.04%
ROIC/WACC0.81
Cap/Depr(3y)235.3%
Cap/Depr(5y)228.69%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.72%
Profit Quality(3y)68.38%
Profit Quality(5y)87.08%
High Growth Momentum
Growth
EPS 1Y (TTM)17.96%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%17.99%
EPS Next Y18.95%
EPS Next 2Y15.41%
EPS Next 3Y13.3%
EPS Next 5YN/A
Revenue 1Y (TTM)14.24%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%19.84%
Revenue Next Year17.73%
Revenue Next 2Y14.23%
Revenue Next 3Y12.9%
Revenue Next 5YN/A
EBIT growth 1Y45.84%
EBIT growth 3Y11.37%
EBIT growth 5Y22.74%
EBIT Next Year42.78%
EBIT Next 3Y20.69%
EBIT Next 5YN/A
FCF growth 1Y142.38%
FCF growth 3Y20.54%
FCF growth 5YN/A
OCF growth 1Y48.97%
OCF growth 3Y7.97%
OCF growth 5Y12.54%
ENSIGN GROUP INC/THE / ENSG FAQ
What is the ChartMill fundamental rating of ENSIGN GROUP INC/THE (ENSG) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ENSG.
What is the valuation status of ENSIGN GROUP INC/THE (ENSG) stock?
ChartMill assigns a valuation rating of 4 / 10 to ENSIGN GROUP INC/THE (ENSG). This can be considered as Fairly Valued.
What is the profitability of ENSG stock?
ENSIGN GROUP INC/THE (ENSG) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ENSIGN GROUP INC/THE (ENSG) stock?
The Price/Earnings (PE) ratio for ENSIGN GROUP INC/THE (ENSG) is 28.61 and the Price/Book (PB) ratio is 5.11.
What is the financial health of ENSIGN GROUP INC/THE (ENSG) stock?
The financial health rating of ENSIGN GROUP INC/THE (ENSG) is 7 / 10.