NasdaqGS:ENSG

Stock Analysis Report

Executive Summary

The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses.

Rewards

PE ratio (23.1x) is below the Healthcare industry average (23.2x)

Earnings are forecast to grow 8.16% per year

Earnings grew by 41.8% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Ensign Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENSG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

ENSG

-2.0%

US Healthcare

-1.2%

US Market


1 Year Return

6.1%

ENSG

11.7%

US Healthcare

22.3%

US Market

Return vs Industry: ENSG underperformed the US Healthcare industry which returned 15% over the past year.

Return vs Market: ENSG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ENSGIndustryMarket
7 Day-5.6%-2.0%-1.2%
30 Day0.4%0.3%1.6%
90 Day7.3%15.5%8.8%
1 Year13.9%6.1%13.6%11.7%25.0%22.3%
3 Year141.5%121.9%51.0%44.2%49.9%40.3%
5 Year134.8%112.7%67.4%55.7%77.6%58.0%

Price Volatility Vs. Market

How volatile is Ensign Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ensign Group undervalued compared to its fair value and its price relative to the market?

21.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENSG ($46.65) is trading above our estimate of fair value ($40.89)

Significantly Below Fair Value: ENSG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENSG is good value based on its PE Ratio (23.1x) compared to the Healthcare industry average (23.2x).

PE vs Market: ENSG is poor value based on its PE Ratio (22.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ENSG is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: ENSG is overvalued based on its PB Ratio (3.6x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

How is Ensign Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENSG's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ENSG's earnings (8.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ENSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: ENSG's revenue (5.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ENSG's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ENSG's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Healthcare industry.

Past Performance

How has Ensign Group performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENSG has high quality earnings.

Growing Profit Margin: ENSG's current net profit margins (4.8%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ENSG's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: ENSG's earnings growth over the past year (41.8%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: ENSG earnings growth over the past year (41.8%) exceeded the Healthcare industry 6.2%.


Return on Equity

High ROE: ENSG's Return on Equity (15.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ensign Group's financial position?


Financial Position Analysis

Short Term Liabilities: ENSG's short term assets ($393.2M) exceed its short term liabilities ($354.6M).

Long Term Liabilities: ENSG's short term assets ($393.2M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: ENSG's debt to equity ratio (39.3%) is considered satisfactory.

Reducing Debt: ENSG's debt to equity ratio has increased from 1.7% to 39.3% over the past 5 years.

Debt Coverage: ENSG's debt is well covered by operating cash flow (69.1%).

Interest Coverage: ENSG's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: ENSG has a high level of physical assets or inventory.

Debt Coverage by Assets: ENSG's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Ensign Group's current dividend yield, its reliability and sustainability?

0.44%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: ENSG's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ENSG's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: ENSG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ENSG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ENSG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ENSG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ensign Group's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Barry Port (45yo)

0.7yrs

Tenure

US$4,236,439

Compensation

Mr. Barry R. Port serves as Chief Executive Officer and Director at The Ensign Group, Inc. since May 30, 2019. Mr. Port has been Chief Operating Officer of Ensign Services, Inc at The Ensign Group, Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD4.24M) is about average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Barry's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.7yrs

Average Tenure

45yo

Average Age

Experienced Management: ENSG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

62yo

Average Age

Experienced Board: ENSG's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$46,15405 Jun 19
Beverly Wittekind
EntityIndividual
Role
Chief Legal Officer
VP & General Counsel
Shares868
Max PriceUS$53.17

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Barry Port (45yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: US$4.24m
  • Roy Christensen (85yo)

    Chairman Emeritus

    • Tenure: 0.7yrs
    • Compensation: US$100.00k
  • Christopher Christensen (50yo)

    Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: US$5.73m
  • Suzanne Snapper (45yo)

    CFO & Executive VP

    • Tenure: 10.4yrs
    • Compensation: US$4.31m
  • Beverly Wittekind (54yo)

    VP & General Counsel

    • Tenure: 10.2yrs
    • Compensation: US$1.65m
  • Danny Walker (41yo)

    Chief Executive Officer of Pennant Healthcare Inc.

    • Chad Keetch (41yo)

      Chief Investment Officer

      • Tenure: 0.7yrs
      • Compensation: US$3.24m
    • Kevin Reese

      President of Keystone Healthcare Inc

      • Tenure: 5.9yrs
    • Spencer Burton

      President & COO

      • Tenure: 0.7yrs

    Board Members

    • Barry Smith (65yo)

      Independent Director

      • Tenure: 6yrs
      • Compensation: US$251.29k
    • Lee Daniels (62yo)

      Independent Director

      • Tenure: 6.6yrs
      • Compensation: US$250.29k
    • Swati Abbott (54yo)

      Director

      • Daren Shaw (62yo)

        Independent Director

        • Tenure: 7.8yrs
        • Compensation: US$257.79k
      • Ann Blouin (65yo)

        Independent Director

        • Tenure: 1.2yrs
        • Compensation: US$2.50k
      • Barry Port (45yo)

        CEO & Director

        • Tenure: 0.7yrs
        • Compensation: US$4.24m
      • Roy Christensen (85yo)

        Chairman Emeritus

        • Tenure: 0.7yrs
        • Compensation: US$100.00k
      • Christopher Christensen (50yo)

        Executive Chairman

        • Tenure: 0.7yrs
        • Compensation: US$5.73m

      Company Information

      The Ensign Group, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: The Ensign Group, Inc.
      • Ticker: ENSG
      • Exchange: NasdaqGS
      • Founded: 1999
      • Industry: Health Care Facilities
      • Sector: Healthcare
      • Market Cap: US$2.394b
      • Shares outstanding: 53.35m
      • Website: https://www.ensigngroup.net

      Number of Employees


      Location

      • The Ensign Group, Inc.
      • 29222 Rancho Viejo Road
      • Suite 127
      • San Juan Capistrano
      • California
      • 92675
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ENSGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2007
      EGBDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2007

      Biography

      The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company operates in three segments: Transitional and Skilled Services; Assisted and Independent Living Services; and Home Health and Hospice Services. The Transitional and Skilled Services segment offers a range of medical, nursing, rehabilitative, and pharmacy services, as well as routine services, such as daily dietary, social, and recreational services to Medicaid, private pay, managed care, and Medicare payors. The Assisted and Independent Living Services segment provides residential accommodations, activities, meals, security, housekeeping, and assistance in the activities of daily living to independent seniors. The Home Health and Hospice Services segment offers nursing, speech, occupational and physical therapists, medical social workers, and certified home health aide services; and hospice care services, including physical, spiritual, and psychosocial services comprising palliative and clinical care, education, and counseling for terminally ill individuals and their families. The company also provides mobile ancillary services that include digital x-ray, ultrasound, electrocardiograms, laboratory services, sub-acute services, and patient transportation. As of April 2, 2019, it operated 248 healthcare facilities; and 24 hospice agencies, 25 home health agencies, and 7 home care businesses in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon, Wisconsin, Kansas, South Carolina, Oklahoma, and Wyoming. The Ensign Group, Inc. was founded in 1999 and is based in San Juan Capistrano, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 00:19
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.