NasdaqGS:ENSG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Solid track record with excellent 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ENSG's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

1.4%

ENSG

-5.4%

US Healthcare

-0.5%

US Market


1 Year Return

59.5%

ENSG

11.5%

US Healthcare

18.3%

US Market

Return vs Industry: ENSG exceeded the US Healthcare industry which returned 12.3% over the past year.

Return vs Market: ENSG exceeded the US Market which returned 19.1% over the past year.


Shareholder returns

ENSGIndustryMarket
7 Day1.4%-5.4%-0.5%
30 Day17.7%2.4%3.6%
90 Day21.3%9.0%5.6%
1 Year60.3%59.5%13.0%11.5%21.0%18.3%
3 Year221.0%195.8%40.5%34.6%45.2%35.6%
5 Year226.0%195.7%76.0%63.3%89.8%68.8%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENSG ($69.9) is trading below our estimate of fair value ($276.63)

Significantly Below Fair Value: ENSG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENSG is poor value based on its PE Ratio (24.6x) compared to the US Healthcare industry average (23.2x).

PE vs Market: ENSG is poor value based on its PE Ratio (24.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ENSG is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ENSG is overvalued based on its PB Ratio (4.9x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is Ensign Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENSG's forecast earnings growth (12.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ENSG's earnings (12.3% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: ENSG's revenue (9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ENSG's revenue (9% 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

Past Performance

How has Ensign Group performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENSG has high quality earnings.

Growing Profit Margin: ENSG's current net profit margins (6.5%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: ENSG's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: ENSG's earnings growth over the past year (160.6%) exceeds its 5-year average (22% per year).

Earnings vs Industry: ENSG earnings growth over the past year (160.6%) exceeded the Healthcare industry 22.6%.


Return on Equity

High ROE: ENSG's Return on Equity (19.9%) is considered low.


Next Steps

Financial Health

How is Ensign Group's financial position?


Financial Position Analysis

Short Term Liabilities: ENSG's short term assets ($526.6M) exceed its short term liabilities ($525.2M).

Long Term Liabilities: ENSG's short term assets ($526.6M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ENSG's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: ENSG's debt to equity ratio has reduced from 17.1% to 15.2% over the past 5 years.

Debt Coverage: ENSG's debt is well covered by operating cash flow (293.9%).

Interest Coverage: ENSG's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENSG's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: ENSG's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (4.2%).


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

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Barry Port (46 yo)

1.5yrs

Tenure

US$5,982,521

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD5.98M) is about average for companies of similar size in the US market ($USD5.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry Port
President1.5yrsUS$5.98m0.31%
$ 11.6m
Roy Christensen
Co-Founder & Director1.5yrsUS$100.00k1.74%
$ 65.8m
Suzanne Snapper
CFO & Executive VP11.25yrsUS$5.81m0.45%
$ 17.1m
Chad Keetch
Chief Investment Officer1.5yrsUS$3.68m0.14%
$ 5.4m
Spencer Burton
President & COO of Ensign Services1.5yrsUS$2.97m0.046%
$ 1.7m
Beverly Wittekind
VP & General Counsel11yrsUS$1.65m0.10%
$ 3.8m
Kevin Reese
President of Keystone Healthcare Inc6.75yrsno datano data

6.8yrs

Average Tenure

46yo

Average Age

Experienced Management: ENSG's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Port
President1.5yrsUS$5.98m0.31%
$ 11.6m
Roy Christensen
Co-Founder & Director1.5yrsUS$100.00k1.74%
$ 65.8m
Barry Smith
Independent Director6.83yrsUS$311.27k0.052%
$ 2.0m
Lee Daniels
Independent Director7.42yrsUS$311.77k0.078%
$ 2.9m
Swati Abbott
Independent Director0.83yrno data0.0063%
$ 237.6k
Daren Shaw
Independent Director8.67yrsUS$317.77k0.082%
$ 3.1m
Ann Blouin
Independent Director2yrsUS$245.84k0.016%
$ 616.1k
Christopher Christensen
Co-Founder & Executive Chairman1.5yrsUS$6.31m2.65%
$ 100.2m

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: ENSG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.777b
  • Shares outstanding: 53.65m
  • 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 offers transitional and skilled services, which include short and long-term...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:11
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.