ENSIGN GROUP INC (ENSG)

Ensign Group Inc. is a holding company with independent subsidiaries that provide skilled nursing, senior living and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation), in 15 states. In addition, Ensign Group Inc. buys, rents out, and owns healthcare real estate as part of their investment plan. This helps to support patients who need ongoing care after leaving the hospital by investing in and acquiring healthcare properties. In 2024, Ensign Group Inc. generated 95.7% of their revenue from their skilled nursing facilities. The remainder of their revenue was primarily generated by their real estate properties, senior living services and other ancillary services.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Skilled Nursing Facilities: Ensign operates skilled nursing and rehabilitation centers that provide care for patients recovering from surgeries, illnesses, or injuries. This represented 95.7% of their revenue in 2024. Revenue comes from Medicare, Medicaid, private insurance, and out-of-pocket payments from patients.

• Assisted Living & Senior Care Services: Ensign owns and operates assisted living and independent living communities where seniors receive housing and personal care services. Residents pay monthly fees based on the level of care needed

• Real Estate Investments: Through its subsidiary, Standard Bearer Healthcare REIT, Ensign owns and leases healthcare-related properties to its own operators and third-party tenants, generating rental income.

Good Time to Buy?

At the time of writing, ENSG is trading at an 18% discount at 128.01/share. In November of 2024, it was trading at 158.45/share which is its 52 Week High.

FYI