The Ensign Group (ENSG) AI Stock Analysis

• Market Cap: $10.71B
• Dividend Yield: 0.14%
• Average Volume (3M): 378.55K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.37
• Revenue Growth: 17.71%
• EPS Growth: 41.83%
• Country: US
• Employees: 39,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.59
• Shares Outstanding: 57,700,157
• 10 Day Avg. Volume: 400,023
• 30 Day Avg. Volume: 378,545
• PEG Ratio: 0.63
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 39.84
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 14.55
• Enterprise Value/Ebitda: 20.29
• 1Y Price Target: $197.50
• Price Target Upside: 6.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $213.00 ▲(14.74% Upside)

The Ensign Group's stock is rated highly due to its strong financial performance and positive earnings call. Technical indicators show strong momentum, though valuation metrics suggest the stock is expensive. The earnings call highlighted strategic growth and financial strength, but potential legislative impacts and acquisition challenges are risks to consider.

The Ensign Group Business Overview & Revenue Model

Company Description

The Ensign Group (ENSG) is a leading provider of healthcare services, primarily focused on skilled nursing and assisted living facilities across the United States. The company operates in two main segments: skilled nursing operations and senior living operations, while also offering rehabilitation services. Ensign is committed to delivering high-quality care and enhancing the lives of the residents it serves through a dedicated workforce and innovative operational strategies.

How the Company Makes Money

The Ensign Group generates revenue primarily through the provision of skilled nursing and assisted living services. Its revenue model includes billing for patient care services, which are typically reimbursed by government programs such as Medicare and Medicaid, as well as private pay sources. Key revenue streams include daily room rates, therapy services, and ancillary services provided to residents. Additionally, Ensign has a strategy of acquiring and managing underperforming healthcare facilities, which allows it to improve operational efficiency and increase profitability over time. The company also benefits from partnerships with healthcare providers and payers, enhancing its service offerings and revenue potential.

The Ensign Group Financial Statement Overview

Summary

The Ensign Group demonstrates strong financial health with robust revenue growth, improved profit margins, and efficient cash management. The balance sheet is stable, though there is room for optimizing the debt-to-equity balance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.61B	4.26B	3.73B	3.03B	2.63B	2.40B
Gross Profit	732.81M	667.59M	590.76M	517.99M	468.21M	407.47M
EBITDA	525.68M	478.52M	353.24M	360.38M	320.84M	281.54M
Net Income	322.80M	297.97M	209.40M	224.68M	194.65M	170.48M
Balance Sheet
Total Assets	4.93B	4.67B	4.18B	3.45B	2.85B	2.55B
Cash, Cash Equivalents and Short-Term Investments	418.44M	526.85M	526.86M	331.71M	275.96M	250.01M
Total Debt	2.04B	1.97B	1.87B	1.57B	1.27B	1.11B
Total Liabilities	2.91B	2.83B	2.68B	2.20B	1.83B	1.73B
Stockholders Equity	2.02B	1.84B	1.49B	1.25B	1.02B	818.08M
Cash Flow
Free Cash Flow	276.76M	188.95M	270.49M	184.97M	206.13M	323.02M
Operating Cash Flow	462.89M	347.19M	376.67M	272.51M	275.68M	373.35M
Investing Cash Flow	-557.41M	-390.05M	-182.70M	-186.18M	-173.91M	-58.67M
Financing Cash Flow	-18.84M	-2.16M	-612.00K	-32.26M	-76.14M	-137.30M

The Ensign Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 185.64 is above the 20-day moving average (MA) of 179.82, above the 50-day MA of 173.72, and above the 200-day MA of 148.17, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 80.71 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	―	$10.71B	33.51	17.57%	0.14%	17.71%	41.83%
UHS	―	$13.95B	10.42	19.97%	0.36%	10.21%	39.58%
EHC	―	$12.72B	24.69	25.35%	0.55%	11.80%	30.02%
NHC	―	$1.89B	18.19	10.65%	2.05%	25.19%	13.44%
THC	―	$18.08B	14.03	34.51%	―	-0.56%	-53.50%
SGRY	―	$2.94B	―	-9.75%	―	12.05%	-432.59%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

The Ensign Group Corporate Events

The Ensign Group Board Member Resigns

Christopher Christensen, a founding member of The Ensign Group, resigned from the Board of Directors effective September 1, 2025. His departure was amicable, and in recognition of his service, the company accelerated the vesting of his stock awards and options, provided a substantial cash bonus, and arranged for health insurance subsidies. Additionally, the company repurchased Christensen’s shares in Standard Bearer Healthcare REIT, Inc., reflecting a strategic financial adjustment.

The most recent analyst rating on (ENSG) stock is a Buy with a $189.00 price target. To see the full list of analyst forecasts on The Ensign Group stock, see the ENSG Stock Forecast page.

The Ensign Group’s Earnings Call Highlights Robust Growth

The latest earnings call for The Ensign Group was marked by a predominantly positive sentiment, underscoring the company’s strong financial performance, increased occupancy rates, and strategic growth initiatives. While there were some concerns about potential Medicaid funding challenges and regulatory environment issues, the overall achievements and upward revised guidance reflect a robust position for the company.

The Ensign Group Reports Strong Q2 2025 Results

The Ensign Group, Inc. is a company operating in the post-acute healthcare sector, primarily providing skilled nursing and senior living services across the United States. It also invests in long-term healthcare facilities and real estate.