📊 ENSG Key Takeaways
Is Ensign Group, Inc. (ENSG) a Good Investment?
Ensign Group demonstrates fundamental operational weakness with near-zero revenue growth (+0.5% YoY) and stagnant net income despite modest operating margins. Most critically, the 4.2% ROE is inadequate and indicates poor capital efficiency, with marginal free cash flow generation (2.1% FCF margin) suggesting the business is generating minimal shareholder value creation.
Ensign Group shows strong underlying fundamentals with solid operating and net margins, high returns on capital, and exceptional cash generation relative to revenue. The balance sheet is conservatively structured with low debt, ample liquidity, and very high interest coverage, which supports resilience and future growth investment. The main offset is muted top-line growth in the latest period, so the case depends on sustaining earnings quality and margin discipline.
Why Buy Ensign Group, Inc. Stock? ENSG Key Strengths
- Fortress balance sheet with minimal leverage (0.06x Debt/Equity) and $539.5M cash position
- Exceptional interest coverage ratio of 63.6x indicating zero solvency risk
- EPS growth of 14.1% YoY demonstrates disciplined capital allocation through share buybacks
- Strong profitability with 8.4% operating margin, 6.8% net margin, and 15.4% ROE
- Excellent financial health with $503.88M cash, 1.42x current ratio, and only 0.06x debt-to-equity
- High-quality cash generation with $564.27M operating cash flow and $492.73M free cash flow
ENSG Stock Risks: Ensign Group, Inc. Investment Risks
- Revenue growth of only 0.5% YoY indicates a stagnant, mature business with no organic expansion
- ROE of 4.2% and ROA of 1.8% are significantly below cost of capital, destroying shareholder value
- Weak free cash flow generation ($28.6M FCF on $1.4B revenue = 2.1% margin) limits dividend capacity and growth investment
- Revenue growth was only 0.5% YoY, raising concern about near-term growth momentum
- Net income was essentially flat YoY, suggesting earnings growth may rely partly on efficiency rather than broad expansion
- Skilled nursing fundamentals can be pressured by reimbursement changes, labor cost inflation, and occupancy volatility
Key Metrics to Watch
- Organic revenue growth acceleration (must exceed 2-3% to justify equity investment)
- Return on Equity improvement (target 8%+ to justify capital deployed)
- Free Cash Flow margin expansion (current 2.1% is inadequate for sustainable returns)
- Revenue growth and occupancy-driven operating margin trends
- Free cash flow conversion and return on equity sustainability
Ensign Group, Inc. (ENSG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.1% FCF margin may limit capital allocation flexibility.
ENSG Profit Margin, ROE & Profitability Analysis
ENSG vs Services Sector: How Ensign Group, Inc. Compares
How Ensign Group, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ensign Group, Inc. Stock Overvalued? ENSG Valuation Analysis 2026
Based on fundamental analysis, Ensign Group, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ensign Group, Inc. Balance Sheet: ENSG Debt, Cash & Liquidity
ENSG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ensign Group, Inc.'s revenue has grown significantly by 92% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.65 reflects profitable operations.
ENSG Revenue Growth, EPS Growth & YoY Performance
ENSG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $80.3M | $1.37 |
| Q3 2025 | $1.1B | $68.8M | $1.34 |
| Q2 2025 | $1.0B | $68.8M | $1.22 |
| Q1 2025 | $1.0B | $68.8M | $1.19 |
| Q3 2024 | $940.8M | $59.9M | $1.11 |
| Q2 2024 | $921.3M | $59.9M | $1.12 |
| Q1 2024 | $886.8M | $59.9M | $1.05 |
| Q3 2023 | $770.0M | $50.3M | $0.99 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ensign Group, Inc. Dividends, Buybacks & Capital Allocation
ENSG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ensign Group, Inc. (CIK: 0001125376)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ENSG
What is the AI rating for ENSG?
Ensign Group, Inc. (ENSG) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ENSG's key strengths?
Claude: Fortress balance sheet with minimal leverage (0.06x Debt/Equity) and $539.5M cash position. Exceptional interest coverage ratio of 63.6x indicating zero solvency risk. ChatGPT: Strong profitability with 8.4% operating margin, 6.8% net margin, and 15.4% ROE. Excellent financial health with $503.88M cash, 1.42x current ratio, and only 0.06x debt-to-equity.
What are the risks of investing in ENSG?
Claude: Revenue growth of only 0.5% YoY indicates a stagnant, mature business with no organic expansion. ROE of 4.2% and ROA of 1.8% are significantly below cost of capital, destroying shareholder value. ChatGPT: Revenue growth was only 0.5% YoY, raising concern about near-term growth momentum. Net income was essentially flat YoY, suggesting earnings growth may rely partly on efficiency rather than broad expansion.
What is ENSG's revenue and growth?
Ensign Group, Inc. reported revenue of $1.4B.
Does ENSG pay dividends?
Ensign Group, Inc. pays dividends, with $3.8M distributed to shareholders in the trailing twelve months.
Where can I find ENSG SEC filings?
Official SEC filings for Ensign Group, Inc. (CIK: 0001125376) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ENSG's EPS?
Ensign Group, Inc. has a diluted EPS of $1.67.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ENSG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Ensign Group, Inc. has a HOLD rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ENSG stock overvalued or undervalued?
Valuation metrics for ENSG: ROE of 4.2% (sector avg: 16%), net margin of 7.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ENSG stock in 2026?
Our dual AI analysis gives Ensign Group, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ENSG's free cash flow?
Ensign Group, Inc.'s operating cash flow is $100.2M, with capital expenditures of $71.5M. FCF margin is 2.1%.
How does ENSG compare to other Services stocks?
Vs Services sector averages: Net margin 7.2% (avg: 10%), ROE 4.2% (avg: 16%), current ratio 1.56 (avg: 1.5).