Ensign Group - AI Stock Analysis

Analysis generated October 20, 2025

Ensign Group, Inc. is a leading provider of healthcare services across the continuum of care, primarily in the United States. The company operates through a network of skilled nursing facilities, rehabilitation services, home health, and hospice services. Ensign Group has leveraged its decentralized operating philosophy and local leadership structure to drive growth and deliver high-quality patient care. The company constantly seeks opportunities for expansion, underscored by its recent increases in job postings and visitor metrics to their website.

Fundamental Analysis

Revenue: For the most recent quarter, Ensign Group reported revenue of $1.23 billion. This marks a 4.67% increase compared to the previous quarter and an 18.48% increase year-over-year. These figures indicate robust growth trends, highlighting the company's ability to generate increasing sales amid the competitive landscape of the healthcare sector.

Net Income: The company's net income for the last quarter stood at $84 million, representing a 5.13% growth over the previous quarter and an 18.86% year-over-year increase. Sustained growth in net income showcases efficient cost management and profitability improvement.

EBITDA: Ensign Group's earnings before interest, taxes, depreciation, and amortization (EBITDA) were $140 million for the last quarter. This is an increase of 5.54% from the prior quarter and 22.32% year-over-year, signaling strong operational performance and cash flow generation.

P/E Ratio: The current price-to-earnings (P/E) ratio is 32.98, which is relatively high. This may suggest that the stock is overvalued at present levels, potentially indicating a bearish outlook among some investors.

Additionally, recent insider selling observed in the last few months could add to concerns about potential overvaluation of the stock.

Technical Analysis

Today's stock price for Ensign Group is $182.35, showing an 11.03% increase compared to a month ago and a 23.65% increase year-over-year. This illustrates a strong positive trend in both the short and long term, aligning with a bullish market sentiment.

The current Simple Moving Average (SMA10) is 179.16, up from the previous SMA10 of 178.46. This upward movement indicates a possible continuation of the positive trend in price.

The Relative Strength Index (RSI) at 66.8 suggests a neutral condition; however, it is important to note that it edges closer to the overbought territory, cautioning against potential short-term corrections.

Alternative Data Analysis

Job Postings and Employee Sentiment: Ensign Group currently has 1,341 open positions, a 10% increase in recent months. This growth in job postings signifies the company’s plans for expansion and is a healthy sign of business strength.

Employee sentiment is currently neutral, indicating neither strong positivity nor negativity among the workforce, which may be interpreted as stable internal corporate health.

Customer Acquisition and Engagement: The Ensign Group website registered an estimated 12,000 visitors, marking a 50% increase in recent months. The surge in web traffic suggests growing interest and potential customer acquisition, presenting a bullish signal for the company's market engagement.

Analyzing the AltIndex AI Score, the company has a score of 71, which rates as a buy signal. This score incorporates fundamental, technical, and alternative data, providing a holistic view of the stock's potential.

Conclusion and Recommendation

Ensign Group shows consistent growth in revenues, net income, and EBITDA, reflecting strong operational performance. The bullish trends in stock price and technical indicators further validate this perspective. However, the high P/E ratio and insider selling trends might indicate potential overvaluation, warranting some caution. The positive alternative data points, including job postings and increased web traffic, illustrate the company's expansion and potential for customer growth.

Based on the comprehensive analysis, Ensign Group is recommended as a moderate buy. Investors should keep an eye on valuation metrics and insider activities while considering the strong operational and market performance indicators.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.