Ensign Group Stock Intrinsic Value – Bank of Montreal Invests $3.77 Million in The Ensign Group, Inc
November 8, 2023
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The Ensign Group ($NASDAQ:ENSG), Inc. has been acquired by the Bank of Montreal in a deal worth $3.77 Million. The Ensign Group is a leading provider of post-acute healthcare services in the United States. It operates through its subsidiaries, including skilled nursing and assisted living facilities, rehabilitation clinics, home health and hospice services, and urgent care centers. This acquisition is expected to provide the Bank of Montreal with an opportunity to expand its healthcare portfolio and capitalize on the strong growth potential of The Ensign Group.
Through this acquisition, both parties stand to gain from the value that The Ensign Group brings to the table. The Ensign Group is well-positioned to continue to fuel growth and innovation in post-acute care services while providing financial support and stability for the Bank of Montreal. With this investment, both parties look forward to a bright future as they continue to work together to provide high-quality healthcare services to those in need.
Market Price
On Monday, The Ensign Group, Inc (ENSIGN GROUP) experienced a minor dip in stock price, with the share opening at $101.5 and closing at $101.8, down by 0.2% from the last closing price of 102.0. The investment will be beneficial for both entities, as ENSIGN GROUP will use the funds to further their growth and development, while Bank of Montreal will benefit from the potential increase in the stock prices of ENSIGN GROUP. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ensign Group. More…
| Total Revenues | Net Income | Net Margin |
| 3.56k | 248.18 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ensign Group. More…
| Operations | Investing | Financing |
| 341.57 | -180.16 | -2.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ensign Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.08k | 2.62k | 25.97 |
Key Ratios Snapshot
Some of the financial key ratios for Ensign Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.1% | 14.1% | 9.2% |
| FCF Margin | ROE | ROA |
| 6.6% | 14.4% | 5.0% |
Analysis – Ensign Group Stock Intrinsic Value
GoodWhale has conducted an analysis of ENSIGN GROUP‘s fundamentals and has determined the fair value of ENSIGN GROUP share to be around $104.3. Our proprietary Valuation Line was used to arrive at this conclusion. Currently, ENSIGN GROUP stock is being traded at $101.8; this constitutes a fair price which is slightly undervalued by 2.4%. More…
Peers
The company has a strong focus on quality and customer satisfaction. Ensign Group Inc competes with Nova Leap Health Corp, Extendicare Inc, and Oceania Healthcare Ltd in the provision of health care services. All these companies have a strong focus on quality and customer satisfaction.
However, Ensign Group Inc has a differentiated business model that has enabled it to achieve a competitive advantage in the market.
– Nova Leap Health Corp ($TSXV:NLH)
Nova Leap Health Corp is a Canadian company that provides home health care services. The company has a market cap of 24.97M and a ROE of 1.6%. Nova Leap is a provider of home health care services that offers a wide range of services to its clients, including personal care, companionship, homemaking, and respite care. The company has a strong focus on providing quality care to its clients and has a team of experienced and qualified caregivers. Nova Leap is dedicated to providing its clients with the best possible care and service, and to making a positive difference in their lives.
– Extendicare Inc ($TSX:EXE)
Extendicare Inc is a Canadian health care provider specializing in the provision of long-term care services, retirement living accommodations, and assisted living facilities. As of December 31, 2020, the Company operated a total of 235 long-term care homes with 27,936 beds, including 206 homes and 26,268 beds in Canada and 29 homes and 1,668 beds in the United States. The Company also operated 11 retirement living communities with 2,005 units, including 10 communities and 1,959 units in Canada and one community with 46 units in the United States.
– Oceania Healthcare Ltd ($NZSE:OCA)
Oceania Healthcare Ltd focuses on providing healthcare services in New Zealand and Australia. The company has a market capitalization of 599.78 million as of 2022 and a return on equity of 5.06%. Oceania Healthcare Ltd provides services to residents in aged care, mental health, and disability sectors. The company has a strong presence in New Zealand with over 60% of its total assets located in the country.
Summary
The Bank of Montreal Can recently made a sizable investment into The Ensign Group, Inc., taking a 3.77 million position in the company’s stock. Analysts note that this is a positive move for the company, as Ensign Group is an established leader in post-acute healthcare services and has seen impressive growth in recent years. The current consensus holds that the company is well-positioned going forward with strong fundamentals and favorable prospects for future growth. Investors may want to consider the long-term potential of Ensign Group as a potential investment option, as it could prove to be a lucrative opportunity in the months and years ahead.
