📊 ENSG Key Takeaways
Is ENSG a Good Investment? Thesis Analysis
ENSG demonstrates solid operational fundamentals with strong profitability metrics (8.4% operating margin, 6.8% net margin) and exceptional financial health characterized by minimal leverage (0.06x debt/equity) and strong interest coverage (216.6x). The company generates robust free cash flow of $492.7M with a healthy 9.7% FCF margin, though revenue growth remains muted at 0.5% YoY, suggesting maturity in the skilled nursing care market.
Why Buy ENSG? Key Strengths
- Exceptional balance sheet strength with minimal debt (0.06x debt/equity ratio) and $503.9M cash reserves
- Strong cash generation with $492.7M free cash flow and 9.7% FCF margin demonstrating operational efficiency
- Solid profitability with 8.4% operating margin and 6.3% ROA despite mature industry characteristics
- Excellent liquidity position (1.42x current ratio) with strong interest coverage (216.6x)
ENSG Investment Risks to Consider
- Anemic revenue growth of only 0.5% YoY suggests limited organic growth in a mature market
- Flat net income growth (-0.1% YoY) despite EPS growth driven primarily by share buybacks rather than earnings expansion
- Skilled nursing care sector faces structural headwinds including regulatory pressures, reimbursement rate constraints, and labor cost inflation
- High insider trading activity (25 Form 4 filings in 90 days) warrants monitoring for potential concerns
Key Metrics to Watch
- Revenue growth acceleration and same-facility revenue trends to assess organic growth capacity
- Operating margin sustainability amid potential wage inflation and staffing pressures in skilled nursing
- Free cash flow yield and capital allocation decisions (dividends vs. buybacks vs. acquisitions)
ENSG Financial Metrics
💡 AI Analyst Insight
ENSIGN GROUP, INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ENSG Profitability Ratios
ENSG vs Default Sector
How ENSIGN GROUP, INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ENSG Overvalued or Undervalued?
Based on fundamental analysis, ENSIGN GROUP, INC has mixed fundamental signals relative to the Default 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.
ENSG Balance Sheet & Liquidity
ENSG 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
ENSG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $732.5M | $50.3M | $1.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ENSG Capital Allocation
ENSG SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ENSIGN GROUP, INC (CIK: 0001125376)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772502473.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772502405.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772502348.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772502281.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772502225.xml | View → |
❓ Frequently Asked Questions about ENSG
What is the AI rating for ENSG?
ENSIGN GROUP, INC (ENSG) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ENSG's key strengths?
Claude: Exceptional balance sheet strength with minimal debt (0.06x debt/equity ratio) and $503.9M cash reserves. Strong cash generation with $492.7M free cash flow and 9.7% FCF margin demonstrating operational efficiency.
What are the risks of investing in ENSG?
Claude: Anemic revenue growth of only 0.5% YoY suggests limited organic growth in a mature market. Flat net income growth (-0.1% YoY) despite EPS growth driven primarily by share buybacks rather than earnings expansion.
What is ENSG's revenue and growth?
ENSIGN GROUP, INC reported revenue of $5.1B.
Does ENSG pay dividends?
ENSIGN GROUP, INC pays dividends, with $14.4M 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 $5.84.
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 March 2026, ENSIGN GROUP, INC has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ENSG stock overvalued or undervalued?
Valuation metrics for ENSG: ROE of 15.4% (sector avg: 15%), net margin of 6.8% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy ENSG stock in 2026?
Our dual AI analysis gives ENSIGN GROUP, INC a combined BUY 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 $564.3M, with capital expenditures of $71.5M. FCF margin is 9.7%.
How does ENSG compare to other Default stocks?
Vs Default sector averages: Net margin 6.8% (avg: 12%), ROE 15.4% (avg: 15%), current ratio 1.42 (avg: 1.8).