search icon

    Market Snapshot

    blog search icon

    Ensign Group (ENSG) Offers The Best of Both Worlds


    Oct 22,2022

    2:39 AM UTC

    The Ensign Group Inc. (NASDAQ: ENSG) is a diversified company operating in the US healthcare sector and has much to offer. Although healthcare typically holds standardization in protocol and near-identical business models, ENSG takes a radically different approach. It is precisely this which has brought it to the center of the market spotlight.

    Strong Quarterly Performance for ENSG

    The Ensign Group (ENSG) came in with strong quarter 2 results this year, delivering revenue of $732 million. This figure came at a 14.7% year-on-year increase, which had been highly well-received by the shareholders of this healthcare star. EPS had also grown YoY from $0.88 to $1.01, which was slightly above analyst expectations of $1. Ensign’s management was also heavily engaged in new acquisitions, which had jumped from $35 million to over $56 million within a single year. All these positive performance indicators are reflected in the 17% price rise in ENSG stock in the last 12 months.

    The Ensign Group Business Approach

    Even though Ensign Group operates as a mid-size player in the healthcare sector, it functions quite similarly to an investment company. This is especially the case in terms of its value-creation strategy. The company also operates a successful real estate sector, which it rents, leases out, and offers the option to purchase to other healthcare players such as nursing homes or hospitals. Due to this, ENSG is capable of capturing benefits similar to a REIT, whilst simultaneously enhancing its exposure in the healthcare market. Similarly, another core strength for the company remains its capital flexibility, which allows it to expand its business, independently of its business operations. This significantly adds to its financial sustainability.


    In many ways, ENSG stock offers the best of both worlds to its investors. It gives them exposure to the healthcare industry, which is highly resilient against economic stresses, whilst also offering maximized value as an investment trust would.

    More From Stocks telegraph