ENSIGN GROUP INC/THE (ENSG)
US29358P1012 - Common Stock
Taking everything into account, ENSG scores 6 out of 10 in our fundamental rating. ENSG was compared to 117 industry peers in the Health Care Providers & Services industry. While ENSG has a great profitability rating, there are some minor concerns on its financial health. ENSG is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ENSG could be worth investigating further for growth 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's Return On Assets of 5.01% is fine compared to the rest of the industry. ENSG outperforms 79.31% of its industry peers.
ENSG has a better Return On Equity (14.04%) than 84.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.74%, ENSG is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ENSG is in line with the industry average of 8.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 14.04% | ||
| ROIC | 5.74% |
ROA(3y)6.12%
ROA(5y)5.95%
ROE(3y)17.04%
ROE(5y)17.77%
ROIC(3y)7.46%
ROIC(5y)7.21%
1.3 Margins
The Profit Margin of ENSG (5.62%) is better than 85.34% of its industry peers.
ENSG's Profit Margin has been stable in the last couple of years.
ENSG's Operating Margin of 6.85% is fine compared to the rest of the industry. ENSG outperforms 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 21.68%, ENSG perfoms like the industry average, outperforming 42.24% of the companies in the same industry.
ENSG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.85% | ||
| PM (TTM) | 5.62% | ||
| GM | 21.68% |
OM growth 3Y-9.67%
OM growth 5Y7.63%
PM growth 3Y-7.51%
PM growth 5Y1.29%
GM growth 3Y-1.81%
GM growth 5Y2.49%
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 has been increased compared to 1 year ago.
Compared to 5 years ago, ENSG has more shares outstanding
Compared to 1 year ago, ENSG has an improved debt to assets ratio.
2.2 Solvency
ENSG has an Altman-Z score of 3.09. This indicates that ENSG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ENSG (3.09) is better than 77.59% of its industry peers.
ENSG has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.74, ENSG belongs to the top of the industry, outperforming 92.24% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that ENSG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, ENSG is in the better half of the industry, outperforming 78.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.63
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ENSG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, ENSG perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
ENSG has a Quick Ratio of 1.42. 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 Quick ratio of 1.42. This is in the better half of the industry: ENSG outperforms 61.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.22% over the past year.
ENSG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.34% yearly.
Looking at the last year, ENSG shows a very strong growth in Revenue. The Revenue has grown by 23.27%.
Measured over the past years, ENSG shows a quite strong growth in Revenue. The Revenue has been growing by 16.28% on average per year.
EPS 1Y (TTM)15.22%
EPS 3Y15.08%
EPS 5Y20.34%
EPS growth Q2Q16.36%
Revenue 1Y (TTM)23.27%
Revenue growth 3Y15.78%
Revenue growth 5Y16.28%
Revenue growth Q2Q21.11%
3.2 Future
The Earnings Per Share is expected to grow by 11.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
EPS Next Y15.26%
EPS Next 2Y12.37%
EPS Next 3Y11.54%
EPS Next 5YN/A
Revenue Next Year11.35%
Revenue Next 2Y10.1%
Revenue Next 3Y10.4%
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
ENSG is valuated rather expensively with a Price/Earnings ratio of 24.43.
Based on the Price/Earnings ratio, ENSG is valued a bit cheaper than 68.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of ENSG to the average of the S&P500 Index (28.06), we can say ENSG is valued inline with the index average.
A Price/Forward Earnings ratio of 21.20 indicates a rather expensive valuation of ENSG.
Based on the Price/Forward Earnings ratio, ENSG is valued a bit cheaper than 65.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ENSG to the average of the S&P500 Index (20.72), we can say ENSG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
ENSG's Enterprise Value to EBITDA is on the same level as the industry average.
60.34% of the companies in the same industry are more expensive than ENSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.72 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ENSG may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)1.2
EPS Next 2Y12.37%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
ENSG has a yearly dividend return of 0.20%, which is pretty low.
ENSG's Dividend Yield is a higher than the industry average which is at 2.73.
With a Dividend Yield of 0.20, ENSG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
The dividend of ENSG has a limited annual growth rate of 5.08%.
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)5.08%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
6.15% 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.
DP6.15%
EPS Next 2Y12.37%
EPS Next 3Y11.54%
ENSIGN GROUP INC/THE
NASDAQ:ENSG (5/2/2024, 7:00:01 PM)
After market: 116.55 0 (0%)116.55
-2.9 (-2.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 21.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.6
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 14.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.85% | ||
| PM (TTM) | 5.62% | ||
| GM | 21.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.22%
EPS 3Y15.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.27%
Revenue growth 3Y15.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y