The Ensign Group, Inc.
The Ensign Group, Inc. Fundamental Analysis
The Ensign Group, Inc. (ENSG) shows moderate financial fundamentals with a PE ratio of 35.59, profit margin of 6.80%, and ROE of 16.58%. The company generates $5.1B in annual revenue with strong year-over-year growth of 14.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ENSG's fundamental strength across five key dimensions:
Efficiency Score
WeakENSG struggles to generate sufficient returns from assets.
Valuation Score
WeakENSG trades at a premium to fair value.
Growth Score
ExcellentENSG delivers strong and consistent growth momentum.
Financial Health Score
ModerateENSG shows balanced financial health with some risks.
Profitability Score
ModerateENSG maintains healthy but balanced margins.
Key Financial Metrics
Is ENSG Expensive or Cheap?
P/E Ratio
ENSG trades at 35.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ENSG's PEG of 7.87 indicates potential overvaluation.
Price to Book
The market values The Ensign Group, Inc. at 5.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.33 times EBITDA. This signals the market has high growth expectations.
How Well Does ENSG Make Money?
Net Profit Margin
For every $100 in sales, The Ensign Group, Inc. keeps $6.80 as profit after all expenses.
Operating Margin
Core operations generate 8.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.58 in profit for every $100 of shareholder equity.
ROA
The Ensign Group, Inc. generates $6.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Ensign Group, Inc. produces operating cash flow of $569.49M, showing steady but balanced cash generation.
Free Cash Flow
The Ensign Group, Inc. produces free cash flow of $374.14M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.44 in free cash annually.
FCF Yield
ENSG converts 3.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ENSG Stacks Against Its Sector Peers
| Metric | ENSG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.59 | 29.45 | Worse (Expensive) |
| ROE | 16.58% | 779.00% | Weak |
| Net Margin | 6.80% | -24936.00% (disorted) | Weak |
| Debt/Equity | 1.86 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.42 | 4.65 | Neutral |
| ROA | 6.30% | -19344.00% (disorted) | Weak |
ENSG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Ensign Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
154.34%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
70.41%
Industry Style: Defensive, Growth, Innovation
High Growth