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The Ensign Group Inc (ENSG) Fair Value & Analysis

Healthcare · US · Market cap $9.9B · ISIN US29358P1012

What is The Ensign Group Inc really worth?

TE The Ensign Group Inc logo The Ensign Group Inc ENSG · US
Price$172.09
Fair Value$95.37
Upside−44.6%
Quality56/100

A solid business, but trading 80% above our fair value of $95.37.

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Strengths

Healthy Growth (revenue 5y +16.1 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 6.9% net margin
!Mixed vs. peers (7/15)
!Moderate moat 51/100
!Weak on dividend: 3 out of 100

For context

·0.15% dividend yield
Evidence: High Range $71.53 – $181.80

Fair value as of: Sep 3, 2026

From 26 valuation models · updated yesterday

Share price −2.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($71.53 to $181.80) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$215.67 $68.57 Fair Value $95.37 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range $68.57 – $215.67 · fair‑value band $71.53 – $181.80 · the $172.09 price screens above the $95.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 3, 2026.

Full chart & analysis →

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Analysis

The Ensign Group Inc (ENSG) currently trades at $172.09, while our model-based Fair Value estimate is $95.37, implying the stock looks roughly 80.4% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of $161.60 per share, and 3 of the 26 models we run sit above the $172.09 price. Bear case: the Asset-Based group reads lowest at $25.58, and 23 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, The Ensign Group Inc generated revenue of $5.3B at a net margin of 6.9%. Revenue grew 18.4% year over year. It earns a return on equity of 16.9%. Net debt stands at $3.7B. Fundamentals as of Sep 3, 2026

Our scenario range runs from $71.53 (bear case) to $181.80 (bull case); at $172.09, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −7% fair-value upside, at −45%, ENSG screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $3.99 per share, which is 4.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $91.14 $161.60 $322.75 76
Growth DCF $88.82 $166.52 $283.15 76
EPV $55.10 $62.81 $69.46 74
All 26 models by family
DCF Models
FCF DCF $91.14 $161.60 $322.75 76
Owner Earnings $64.59 $120.81 $223.75 73
5Y Revenue Exit $78.87 $140.32 $227.05 71
5Y EBITDA Exit $94.53 $174.79 $280.48 73
5Y P/E Exit $95.79 $177.58 $276.42 69
10Y Revenue Exit $79.89 $140.73 $241.47 64
10Y EBITDA Exit $92.68 $166.39 $288.11 66
10Y P/E Exit $93.52 $168.46 $284.57 62
Earnings-Based
Graham-Dodd $40.02 $229.03 $318.45 63
Lynch FV $64.47 $92.11 $119.74 61
PEG = 1.0 $64.47 $92.11 $119.74 57
EPV $55.10 $62.81 $69.46 74
Dividend Discount
Gordon GGM $2.17 $4.31 $6.53 67
DDM Multi-Stage $2.17 $3.73 $4.55 67
Multiples
P/E Multiple $97.11 $129.48 $161.85 63
P/S Multiple $75.04 $100.05 $125.06 58
P/B Multiple $75.04 $100.05 $125.06 55
EV/EBIT $99.05 $129.98 $160.90 66
EV/EBITDA $101.42 $133.14 $164.85 67
EV/Revenue $72.49 $100.87 $129.25 54
Asset-Based
NCAV (Graham) $19.09 $25.58 $38.18 54
Growth DCF
Growth DCF $88.82 $166.52 $283.15 76
Rev-Margin DCF $78.87 $138.06 $220.07 71
Economic Profit
Residual Income $37.97 $52.15 $177.31 64
ROIC Compounder $63.18 $86.38 $117.32 71
Growth Earnings
Growth-Adj P/E $97.89 $139.84 $181.80 67

Widest divergence: DCF Models ($161.60) versus Dividend Discount ($3.73). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 28.0
P/S ratio 1.91 P/E × margin
EPS (TTM) $6.12 price ÷ EPS = P/E 28.0
Dividend yield 0.1% payout 4.2%
Net margin 6.8% FY2025
Return on equity 16.9% TTM
More key figures
Profitability
Return on assets (EBIT) 7.9% avg 5y
Operating margin 9.0% TTM
Growth
Revenue (TTM) $5.3B TTM
Revenue growth (YoY) +18.4% 3y avg +18.7%
EPS growth (YoY) +21.9%
Balance sheet & cash flow
Free cash flow $371M FY2025
Net debt $3.7B FY2025 · ≈ 9.8 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 58 · Market factors (momentum, volatility) 50

Profitability 47
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 39
Distance to the 52-week high (market factor)
Net Issuance 70
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer.

Full company description

The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The Skilled Services segment provides short and long-term nursing care services for patients with chronic conditions, prolonged illness, and the elderly; specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management; and standard services, such as room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. The Standard Bearer segment leases post-acute care properties to healthcare operators. In addition, the company operates senior living units; and provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. The company operates healthcare facilities in Alabama, Alaska, Arizona, Colorado, Idaho, Iowa, Kansas, Oregon, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington, and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The Ensign Group Inc reported revenue of $5.1B in FY2025 versus $2.6B in FY2021, a compound +17.8%/yr. Reported net income was $344M in FY2025, compounding +15.3%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$5.1B
Latest YoY
+18.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.1%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+13.9% (13.8 + 0.1)
Revenue +17.8%/yr
FY21 $2.6B
FY22 $3.0B
FY23 $3.7B
FY24 $4.3B
FY25 $5.1B
Net income +15.3%/yr
FY21 $195M
FY22 $225M
FY23 $209M
FY24 $298M
FY25 $344M
Character of growth · EPS growth decomposed (2014-2025) +20.1 % p.a.
Revenue per share +12.1 %

of which total revenue +14.0 % · buybacks/dilution −1.6 %

EBIT margin +2.4 %
Tax rate +2.8 %
Residual (interest, one-offs) +1.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ENSG screens 80% overvalued. Compare with HCA Healthcare, Inc →

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Cite: Fair Value Calculator (2026). "The Ensign Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/ENSG

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Medical Care Facilities · 256 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −45% · Bottom 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 18% · Top 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 28.0× · Pricier than median
P/B 4.42× · Pricier than 75% of peers
P/S (TTM) 1.87× · Pricier than median
P/FCF 26.6× · Pricier than 75% of peers
EV/EBITDA 17.0× · Pricier than 75% of peers
PEG 1.50× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 23
FUTURE92 · sector 26
PAST68 · sector 30
HEALTH97 · sector 90
DIVIDEND3 · sector 43

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Medical Care Facilities stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
HCA Healthcare, Inc HCA $417.82 $547.67 +31%
Fresenius SE FRE €45.25 €32.15 −29%
Dr. Sulaiman Al Habib Medical Services Group 4013 241.00 SAR 112.37 SAR −53%
IHH Healthcare Berhad, an investment holding company, Q0F 2.67 SGD 1.44 SGD −46%
Tenet Healthcare Corporation THC $266.80 $330.25 +24%
DaVita Inc DVA $180.68 $186.49 +3%
Apollo Hospitals Enterprise Limited APOLLOHOSP ₹8,818 ₹2,955 −66%
Fresenius Medical Care AG FME €39.92 €71.28 +79%
Aier Eye Hospital Group 300015 ¥8.25 ¥7.67 −7%
Max Healthcare Institute Limited MAXHEALTH ₹1,005 ₹284.87 −72%

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Frequently asked questions

Is The Ensign Group Inc (ENSG) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of $95.37 versus a price of $172.09, about −45% upside (overvalued).
What is the fair value of ENSG?
Our model-based fair value for The Ensign Group Inc is $95.37 (as of Sep 3, 2026), built from audited fundamentals. The current price: $172.09.
What is the quality score of ENSG?
The Ensign Group Inc has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of The Ensign Group Inc (ENSG)?
The Ensign Group Inc reported trailing-twelve-month revenue of about $5.3B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of ENSG?
The net profit margin of The Ensign Group Inc is about 6.9%, meaning it keeps roughly 6.9% of revenue as net income. Based on the latest reported figures.
Does The Ensign Group Inc pay a dividend?
The Ensign Group Inc currently shows a dividend yield of about 0.15% relative to its recent price (as of Sep 3, 2026).
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