The Ensign Group (ENSG) AI Stock Analysis

• Market Cap: $9.11B
• Dividend Yield: 0.16%
• Average Volume (3M): 411.09K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.34
• Revenue Growth: 17.71%
• EPS Growth: 41.83%
• Country: US
• Employees: 39,300
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 1.59
• Shares Outstanding: 57,700,157
• 10 Day Avg. Volume: 636,962
• 30 Day Avg. Volume: 411,092
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 13.50
• Enterprise Value/Ebitda: 20.61
• 1Y Price Target: $172.67
• Price Target Upside: 9.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $169.00 ▲(7.02% Upside)

The Ensign Group's strong financial performance and positive earnings call guidance are the most significant factors driving the stock score. While technical analysis and valuation present some cautionary notes, the company's strategic growth and increased guidance support a positive overall outlook.

The Ensign Group Business Overview & Revenue Model

Company Description

The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company operates in two segments, Skilled Services and Real Estate. The company offers skilled services, which include short and long-term nursing care services for patients with chronic conditions, prolonged illness, and the elderly; and physical, occupational, and speech therapies and other rehabilitative and healthcare services. It also provides standard services, such as room and board, special nutritional programs, social, recreational, entertainment, and other services. In addition, the company offers senior living, as well as mobile diagnostics services; leases real estate properties; and provides other ancillary services consisting of digital x-ray, ultrasound, electrocardiogram, laboratory, sub-acute, and patient transportation services to people in their homes or at long-term care facilities. As of April 4, 2022, it operated 252 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington, and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.

How the Company Makes Money

The Ensign Group generates revenue primarily through its skilled nursing and senior living facilities by providing healthcare services to residents and patients. The company earns money through payments from government healthcare programs like Medicare and Medicaid, as well as private pay and insurance sources. Additionally, The Ensign Group benefits from strategic acquisitions of underperforming facilities, which they integrate into their network to improve profitability. The company also collaborates with healthcare providers and payers to optimize service delivery and cost-efficiency, contributing to its financial performance.

The Ensign Group Financial Statement Overview

Summary

The Ensign Group exhibits strong financial health with robust revenue and profit growth, efficient cash management, and moderate leverage. The company's free cash flow growth and solid cash conversion ratios further indicate financial stability. The focus should be on optimizing the balance between debt and equity.

Income Statement

The Ensign Group demonstrates strong revenue growth with a 9.1% increase in revenue over the TTM (Trailing-Twelve-Months) period. Gross profit margin improved to 17.1%, indicative of solid operational efficiency. Net profit margin increased to 7.0%, showing enhanced profitability. The EBIT and EBITDA margins are healthy at 8.6% and 11.2% respectively, reflecting effective cost management and earnings capability.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.94, indicating moderate leverage. Return on equity stands at 16.0%, showcasing effective utilization of shareholders' equity. The equity ratio of 40.9% suggests a stable asset base financed by equity, although there is room to reduce debt levels further.

Cash Flow

Free cash flow growth rate is strong at 46.5% over the last year, underpinning solid cash generation capability. The operating cash flow to net income ratio is 1.43, indicating efficient cash conversion. The free cash flow to net income ratio is 0.86, reflecting a healthy cash flow position relative to profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.26B	3.73B	3.03B	2.63B	2.40B
Gross Profit	667.59M	590.76M	517.99M	468.21M	407.47M
EBITDA	461.46M	353.24M	360.38M	320.84M	281.54M
Net Income	297.97M	209.40M	224.68M	194.65M	170.48M
Balance Sheet
Total Assets	4.67B	4.18B	3.45B	2.85B	2.55B
Cash, Cash Equivalents and Short-Term Investments	526.85M	526.86M	331.71M	275.96M	250.01M
Total Debt	1.97B	1.87B	1.57B	1.27B	1.11B
Total Liabilities	2.83B	2.68B	2.20B	1.83B	1.73B
Stockholders Equity	1.84B	1.49B	1.25B	1.02B	818.23M
Cash Flow
Free Cash Flow	188.95M	270.49M	184.97M	206.13M	323.02M
Operating Cash Flow	347.19M	376.67M	272.51M	275.68M	373.35M
Investing Cash Flow	-390.05M	-182.70M	-186.18M	-173.91M	-58.67M
Financing Cash Flow	-2.16M	-612.00K	-32.26M	-76.14M	-137.30M

The Ensign Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENSG, the sentiment is Positive. The current price of 157.92 is above the 20-day moving average (MA) of 145.17, above the 50-day MA of 148.36, and above the 200-day MA of 139.81, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 96.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENSG.

The Ensign Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	79 Outperform	$9.11B	27.97	17.57%	0.16%	17.71%	41.83%
NHC	75 Outperform	$1.46B	13.68	11.19%	2.61%	19.16%	31.92%
UHS	73 Outperform	$10.50B	8.59	18.66%	0.49%	9.61%	39.65%
SEM	71 Outperform	$1.46B	11.22	8.15%	2.21%	-16.10%	-48.97%
THC	70 Outperform	$14.16B	10.26	41.09%	―	-1.09%	-43.10%
EHC	66 Neutral	$11.48B	21.32	25.37%	0.60%	11.21%	30.38%
Sector *	60 Neutral	HK$17.46B	5.12	-4.88%	3.74%	9.34%	-38.39%

The Ensign Group Corporate Events

The Ensign Group Announces Leadership Transition Plans

Christopher Christensen, who has been with The Ensign Group since 1999 and served as Executive Chairman since 2019, announced his retirement effective September 1, 2025. Barry Port, the current CEO, will take over as Chair of the Board. Additionally, Marivic S. Uychiat, a long-time executive with the company, will join the Board, bringing her extensive experience in clinical services and healthcare management. These changes mark a significant transition in the company’s leadership, potentially impacting its strategic direction and governance structure.

The most recent analyst rating on (ENSG) stock is a Buy with a $177.00 price target. To see the full list of analyst forecasts on The Ensign Group stock, see the ENSG Stock Forecast page.

The Ensign Group Holds 2025 Annual Stockholders Meeting

The Ensign Group held its 2025 Annual Meeting of Stockholders on May 15, 2025, where key decisions were made regarding the company’s governance and operational strategies. During the meeting, directors were elected, Deloitte & Touche LLP was ratified as the independent accounting firm for 2025, executive compensation was approved, and an amendment to the 2022 Omnibus Incentive Plan was passed, reflecting shareholder support for the company’s strategic direction.

The most recent analyst rating on (ENSG) stock is a Buy with a $177.00 price target. To see the full list of analyst forecasts on The Ensign Group stock, see the ENSG Stock Forecast page.