The Ensign Group ENSG
United StatesHealthcare · Medical Care FacilitiesUSD
220.00 USD (+30.0%)
5 analysts
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The Ensign Group, Inc. is a diversified operator of skilled nursing facilities, assisted living centers, and other post-acute healthcare services in the United States, generating revenue primarily through government reimbursements (Medicare/Medicaid) and private payments.
Key points
from its scores- ✓Strong growth7.5
- ✓Favourable backdrop7.3
- ✕Little or no dividend2.1
- ✕Fragile balance sheet4.2
- ✕Demanding valuation4.5
AI analysis
bottom line, main risk, context and newsGrowth is attractive, but leverage and regulatory risk justify waiting for a better entry point or a reduction in debt before increasing the position.
The Ensign Group shows solid growth (revenue +17.3%, earnings +16.7%) and a 17% return on equity, but its high leverage (Net Debt/EBITDA of 3.31) and dependence on government reimbursements in an environment of rising long-term rates and intense regulatory scrutiny temper its appeal. The valuation (P/E 26.5) already discounts much of the good growth prospects.
The main risk is the combination of a leveraged balance sheet (Net Debt/EBITDA of 3.31) with exposure to regulatory changes in Medicare/Medicaid reimbursements, which could compress margins and make debt servicing more difficult.
Context and risks
The Ensign Group operates nursing homes and healthcare facilities in the U.S., a sector with intense and continuous regulatory scrutiny. The company depends on government reimbursements (Medicare/Medicaid), which are subject to changes in payment policies and rate reviews. This regulatory risk is inherent to its business model and can directly affect its margins and cash flows.
Is The Ensign Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 19% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 26.5 | 26.7 | −1% |
| EV / EBITDA | 20.1 | 14.5 | +39% |
| Price / book | 4.0 | 4.1 | −3% |
| Price / sales | 1.8 | 3.4 | −47% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.5 out of 10 (median for Healthcare: 4.7).
Average analyst target: 220.00 USD, +30.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.9 (sector 5.5), Growth 7.5 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 26.5
- Forward P/E
- 19.8
- EV / EBITDA
- 20.1
- Price / book
- 4.0
- Price / sales
- 1.8
- PEG
- 1.36
- Market cap
- 9.9B USD
- Enterprise value
- 11.7B USD
Profitability
- ROE
- 17.0%
- ROA
- 5.5%
- ROIC (approx.)
- 10.5%
- Gross margin
- 16.6%
- Operating margin
- 9.0%
- Net margin
- 6.9%
- Free cash flow
- 280.6M USD
- FCF yield
- 2.8%
- Cash conversion
- 48%
Solvency
- Total debt
- 2.3B USD
- Net debt
- 1.9B USD
- Cash
- 320.8M USD
- EBITDA
- 582.7M USD
- Net debt / EBITDA
- 3.31
- Debt / equity
- 92.03
- Current ratio
- 1.21
- Quick ratio
- 1.12
Growth
- Revenue growth
- +17.3%
- Earnings growth
- +16.7%
- EPS (TTM)
- 6.38 USD
- EPS (forward)
- 8.56 USD
Dividend
- Dividend yield
- 0.2%
- Payout
- 4.0%
Risk and market
- Beta
- 0.66
- Analyst consensus
- Buy (5)
- Target price
- 220.00 USD
- 52-week range
- 141.58 – 218.00
Recent news
All ENSG news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about The Ensign Group
Is The Ensign Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 19% above the Healthcare median on average. Valuation score: 4.5 out of 10 (median for Healthcare: 4.7). Average analyst target: 220.00 USD, +30.0% versus the price. This is not investment advice.
What score does The Ensign Group get on MeridIAn Screener?
It scores 5.2 out of 10, rank 1,586 of 2,130 (better than 24% of the companies analysed). Its strongest category is Growth (7.5) and its weakest, Dividend (2.1). Analysis of 08/10/2026.
What is The Ensign Group's P/E ratio?
Its P/E is 26.5: the share price equals 26.5 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 19.8.
How much is The Ensign Group worth on the stock market?
Its market capitalisation is 9.9B USD and its enterprise value, debt included, is 11.7B USD.
How much debt does The Ensign Group have?
Its net debt (debt minus cash) is 1.9B USD. That is 3.31 times its EBITDA; the Healthcare median is 1.53.
Does The Ensign Group pay a dividend?
Yes: its dividend yield is 0.15% and it pays out 4% of its earnings.
How has The Ensign Group stock performed over the last year?
It has fallen 3.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 141.58 and 218.00 USD. Past performance does not guarantee future results.
What do analysts think of The Ensign Group?
5 analysts cover it; their average recommendation is “Buy” and their average target is 220.00 USD (+30.0% versus the price). It is an estimate, not market data.