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 gets an excellent profitability rating and is at the same time showing great financial health properties. ENSG is not valued too expensively and it also shows a decent growth rate. 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.
In the past 5 years ENSG has always been profitable.
ENSG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.50%, ENSG belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
The Return On Equity of ENSG (16.06%) is better than 84.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.18%, ENSG is in the better half of the industry, outperforming 70.59% 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 below the industry average of 9.59%.
The last Return On Invested Capital (7.18%) for ENSG is above the 3 year average (6.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 16.06% | ||
| ROIC | 7.18% |
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 7.00% is amongst the best of the industry. ENSG outperforms 85.29% of its industry peers.
ENSG's Profit Margin has improved in the last couple of years.
ENSG has a Operating Margin of 8.53%. This is in the better half of the industry: ENSG outperforms 75.49% of its industry peers.
In the last couple of years the Operating Margin of ENSG has grown nicely.
ENSG has a Gross Margin of 21.32%. This is comparable to the rest of the industry: ENSG outperforms 44.12% of its industry peers.
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 | 8.53% | ||
| PM (TTM) | 7% | ||
| 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.
Compared to 1 year ago, ENSG has more shares outstanding
Compared to 5 years ago, ENSG has more shares outstanding
ENSG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.54 indicates that ENSG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.54, ENSG is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
ENSG has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.68, ENSG belongs to the best of the industry, outperforming 89.22% 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 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.8
WACC9.01%
2.3 Liquidity
ENSG has a Current Ratio of 1.40. 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 (1.40) which is in line with its industry peers.
ENSG has a Quick Ratio of 1.40. This is a normal value and indicates that ENSG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ENSG (1.40) 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 | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
ENSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.79%, which is quite good.
ENSG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.68% yearly.
ENSG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.81%.
Measured over the past years, ENSG shows a quite strong growth in Revenue. The Revenue has been growing by 15.91% on average per year.
EPS 1Y (TTM)15.79%
EPS 3Y14.75%
EPS 5Y19.68%
EPS Q2Q%16.92%
Revenue 1Y (TTM)14.81%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%16.12%
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 12.79% on average per year.
ENSG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.50% yearly.
EPS Next Y16.96%
EPS Next 2Y13.74%
EPS Next 3Y12.79%
EPS Next 5YN/A
Revenue Next Year15.5%
Revenue Next 2Y12.56%
Revenue Next 3Y11.5%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.33, ENSG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ENSG indicates a somewhat cheap valuation: ENSG is cheaper than 60.78% of the companies listed in the same industry.
ENSG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 21.17, which indicates a rather expensive current valuation of ENSG.
ENSG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, ENSG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
ENSG's Enterprise Value to EBITDA ratio is in line with the industry average.
ENSG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.41 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ENSG may justify a higher PE ratio.
ENSG's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)1.34
EPS Next 2Y13.74%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, 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 0.17, ENSG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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
4.48% 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.
DP4.48%
EPS Next 2Y13.74%
EPS Next 3Y12.79%
150.63
+2.58 (+1.74%)
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 Change1.37%
Ins Owners3.38%
Ins Owner Change1.8%
Market Cap8.66B
Analysts81.82
Price Target169.52 (12.54%)
Short Float %4.98%
Short Ratio5.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.24
Dividend Growth(5Y)4.75%
DP4.48%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.65%
Min EPS beat(2)-1.26%
Max EPS beat(2)-0.04%
EPS beat(4)0
Avg EPS beat(4)-0.78%
Min EPS beat(4)-1.26%
Max EPS beat(4)-0.04%
EPS beat(8)0
Avg EPS beat(8)-0.86%
EPS beat(12)1
Avg EPS beat(12)-0.8%
EPS beat(16)1
Avg EPS beat(16)-0.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.38%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)2
Avg Revenue beat(16)-1.25%
PT rev (1m)0.24%
PT rev (3m)0.12%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)0.98%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.17 | ||
| P/S | 1.96 | ||
| P/FCF | 40.41 | ||
| P/OCF | 22.55 | ||
| P/B | 4.49 | ||
| P/tB | 4.77 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)5.72
EY3.8%
EPS(NY)7.11
Fwd EY4.72%
FCF(TTM)3.73
FCFY2.47%
OCF(TTM)6.68
OCFY4.44%
SpS76.94
BVpS33.52
TBVpS31.55
PEG (NY)1.55
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 16.06% | ||
| ROCE | 9.31% | ||
| ROIC | 7.18% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 8.09% | ||
| OM | 8.53% | ||
| PM (TTM) | 7% | ||
| GM | 21.32% | ||
| FCFM | 4.84% |
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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 191.48% | ||
| Cap/Sales | 3.84% | ||
| Interest Coverage | 53.14 | ||
| Cash Conversion | 82.4% | ||
| Profit Quality | 69.26% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 3.54 |
F-Score6
WACC9.01%
ROIC/WACC0.8
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 Y16.96%
EPS Next 2Y13.74%
EPS Next 3Y12.79%
EPS Next 5YN/A
Revenue 1Y (TTM)14.81%
Revenue growth 3Y17.48%
Revenue growth 5Y15.91%
Sales Q2Q%16.12%
Revenue Next Year15.5%
Revenue Next 2Y12.56%
Revenue Next 3Y11.5%
Revenue Next 5YN/A
EBIT growth 1Y43.66%
EBIT growth 3Y11.4%
EBIT growth 5Y22.76%
EBIT Next Year39.92%
EBIT Next 3Y19.27%
EBIT Next 5YN/A
FCF growth 1Y97.16%
FCF growth 3Y20.53%
FCF growth 5YN/A
OCF growth 1Y39.72%
OCF growth 3Y7.99%
OCF growth 5Y12.55%