The Ensign Group Inc. Common Stock (ENSG)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses at sensible prices. Ensign provides skilled nursing and senior living services through Skilled Services and Standard Bearer, with 46,000 employees. The filed record shows growth: in fiscal 2023 (the year ended 2023-12-31), revenue was $3.7B, net income $209.4M, and diluted EPS $3.65; in fiscal 2024 (the year ended 2024-12-31), revenue was $4.2B, net income $298.0M, and diluted EPS $5.12; in fiscal 2025 (the year ended 2025-12-31), revenue was $5.0B, net income $344.0M, and diluted EPS $5.84. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $1.4B, net income $99.7M, and diluted EPS $1.68. FairStock's Lynch category is STALWART, citing 15.1% yearly profit growth and 16.1% revenue growth over five years. Financial health is decent: FairStock calculates ROE 16.97%, ROCE 5.49%, D/E 0.92, Piotroski 7/9, Altman Z 2.67, TTM FCF $419.1M, and FCF yield 4.2%. But ROCE is low, and leverage is meaningful. Valuation is my concern. At the 2026-10-13 close of $173.26, FairStock calculates P/E 27.16, P/B 4.10, EV/EBITDA 19.45, PEG 1.49, and Graham Number $77.55, giving a -123.42% margin of safety. That means the price is far above a conservative asset-based value. The business is a steady grower, but not a Graham bargain. Quality is visible; the price already assumes much of it.

In plain English: The company runs skilled nursing, senior living, and rehabilitation facilities through two operating segments and employs about 46,000 people. Its sales and profits have been growing, and it produces positive cash flow, so the business looks reasonably strong. At the recent price, however, the shares look expensive compared with the company's accounting value and a simple asset-based check.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer