Ensign Group(US:ENSG) ZACKS·2025-06-16 14:35Core Insights - The Ensign Group Inc. (ENSG) has shown strong performance with a 23.8% increase in stock value over the past year, surpassing the industry's average growth of 17.3% [1][10] - The company operates in the healthcare services sector, focusing on post-acute care, urgent care centers, and mobile ancillary businesses in the United States [1] Company Overview - Headquartered in San Juan Capistrano, CA, ENSG has a market capitalization of $8.7 billion and operates through two segments: Skilled Services and Standard Bearer [2] - The forward P/E ratio of ENSG is 23.01X, which is significantly lower than the industry average of 45.06X, indicating potential value [2] Financial Estimates - The Zacks Consensus Estimate for ENSG's 2025 earnings is $6.29 per share, reflecting a 14.4% year-over-year increase [3] - Revenue estimates for 2025 are projected at $4.9 billion, indicating a 15% year-over-year rise, with the company having beaten earnings estimates in the past four quarters [3] Growth Drivers - ENSG's revenue growth is attributed to service revenues, strategic acquisitions, and rental income, with a focus on improving occupancy and skilled mix [4] - The company has added 47 new operations since 2024, enhancing its growth potential [4] Revenue Performance - In the first quarter of 2025, the skilled services unit's revenues grew by 15.9% year-over-year to $1.12 billion, while the standard bearer segment's revenues increased by 27.9% to $28.4 million [5] - The annual revenue guidance for 2025 has been raised to a range of $4.89-$4.94 billion from a previous range of $4.83-$4.91 billion [5] Financial Health - ENSG's total debt is only 7% of its capital, significantly lower than the industry average of 86.2%, indicating strong financial stability [6] - The company has engaged in share buybacks worth $10.8 million and paid dividends of $3.6 million in the first quarter of 2025, demonstrating a commitment to enhancing shareholder value [6]