As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of The Ensign Group, Inc. ( NASDAQ:ENSG ), it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Ensign Group here .
Excellent balance sheet with proven track record
In the past couple of years, ENSG has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did ENSG outperformed its past performance, its growth also surpassed the Healthcare industry expansion, which generated a 18% earnings growth. This is what investors like to see! ENSG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ENSG appears to have made good use of debt, producing operating cash levels of 0.86x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Ensign Group, there are three essential aspects you should look at:
- Future Outlook : What are well-informed industry analysts predicting for ENSG’s future growth? Take a look at our free research report of analyst consensus for ENSG’s outlook.
- Valuation : What is ENSG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ENSG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ENSG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.