The Ensign Group provides a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, urgent care services and other rehabilitative and healthcare services. The company was founded in 1999 and is based in Mission Viejo, California.
ENSG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ensign Group Inc. To summarize, we found that Ensign Group Inc ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 182.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Ensign Group Inc, consider:
The compound growth rate in the free cash flow of Ensign Group Inc over the past 5.48 years is 0.52%; that's better than 80.17% of cash flow producing equities in the Healthcare sector, where it is classified.
Ensign Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 14.48% of tickers in our DCF set.
ENSG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 14.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ENSG, try ARA, CVS, FTLF, HAE, and ALXN.
Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Small Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 4.48% was recorded by the fund for the Q3 of 2020, above its Russel 2000 Value benchmark that returned 2.56%. You can view the fund’s top 10 […]
The Ensign Group has acquired the operations of three skilled nursing facilities in Southern California, effective January 1, 2021. The company did not disclose the financial terms of the deal. Ensign (ENSG) acquired Golden Hill Post Acute, a skilled nursing facility with 99 skilled nursing beds located in San Diego, California, St. Catherine Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Fullerton, California, and Camino Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Hawthorne, California. The acquisitions will be subject to a long-term, triple net lease.