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Ensign Group (ENSG) Ups Credit Facility to $600M to Fuel Growth
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The Ensign Group, Inc. (ENSG - Free Report) and its subsidiaries recently hiked their credit facility by $250 million, leading to a total of $600 million. In this regard, it should be noted that the same was supported by a lending consortium arranged by Truist Securities.
This new facility will mature on Apr 8, 2027. It even consists of a $400-million incremental expansion option among other things. The skilled nursing operator will utilize the funds for its upcoming pipeline of buyouts, renovation of current and future facilities, other business requirements, et al. The proceeds are also expected to cater to ENSG’s working capital needs, per management.
Ensign Group has always been aggressive when it comes to maintaining its solvency level. The new credit facility was required for additional flexibility, given the current evolving nature of the healthcare sector. This helped it continue with its acquisitions. In the fourth quarter of 2021, ENSG successfully added 17 operations to its portfolio.
It is nothing new for this hospital company to actively seek transactions to acquire real estate and lease both well-performing and struggling skilled nursing, assisted living and other healthcare-related businesses in new and existing markets. ENSG bought 278 facilities from January 2011 through December 2021.
Ensign Group continues to pursue its acquisition spree in 2022 as well.
ENSG now has a portfolio of 252 healthcare operations, 25 of which include senior living operations across 13 states. ENSG owns 103 real-estate assets.
Its total debt is 13.3% of its capital, much lower than the industry’s average of 79.5%. Also, its times interest earned stands at 38.67X, which came against the industry’s negative average of 0.8X. As of Dec 31, 2021, it had $262.2 million of cash and cash equivalents, up 10.8% from the level at 2020 end, and a revolving line of credit of up to $350 million in available capacity, much higher than its long-term debt less current maturities of $152.8 million. This proves its balance sheet strength, which is required for carrying out growth-related investments.
Zacks Rank and Price Performance
In the past six months, its shares have gained 13.3%, outperforming the industry's growth of 10.7%.
Some better-ranked stocks from the Medical space are Compugen Ltd. (CGEN - Free Report) , Humana, Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) , all carrying a Zacks Rank #2 (Buy) at present.
Based in Holon, Israel, Compugen develops therapeutic and product candidates in the United States, Israel and Europe. In the last four quarters, CGEN’s earnings beat estimates thrice and met the same once, the average surprise being 22%. Shares of CGEN have lost 60.1% in six months’ time.
Humana is one of the largest health care plan providers in the United States. Over the past seven days, HUM has witnessed its 2022 and 2023 earnings estimates move 0.1% and 0.03%, respectively. HUM’s earnings managed to surpass estimates in all its trailing four quarters, the average being 3.10%. HUM has a VGM Score of B. The stock has gained 3.2% in the past six months.
Centene Corporation is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government sponsored healthcare programs. CNC holds a VGM Score of A. Over the past seven days, CNC has witnessed its 2022 earnings estimates move 0.2% north. Over the past six months, CNC has gained 35.7%.
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Ensign Group (ENSG) Ups Credit Facility to $600M to Fuel Growth
The Ensign Group, Inc. (ENSG - Free Report) and its subsidiaries recently hiked their credit facility by $250 million, leading to a total of $600 million. In this regard, it should be noted that the same was supported by a lending consortium arranged by Truist Securities.
This new facility will mature on Apr 8, 2027. It even consists of a $400-million incremental expansion option among other things. The skilled nursing operator will utilize the funds for its upcoming pipeline of buyouts, renovation of current and future facilities, other business requirements, et al. The proceeds are also expected to cater to ENSG’s working capital needs, per management.
Ensign Group has always been aggressive when it comes to maintaining its solvency level. The new credit facility was required for additional flexibility, given the current evolving nature of the healthcare sector. This helped it continue with its acquisitions. In the fourth quarter of 2021, ENSG successfully added 17 operations to its portfolio.
It is nothing new for this hospital company to actively seek transactions to acquire real estate and lease both well-performing and struggling skilled nursing, assisted living and other healthcare-related businesses in new and existing markets. ENSG bought 278 facilities from January 2011 through December 2021.
Ensign Group continues to pursue its acquisition spree in 2022 as well.
ENSG now has a portfolio of 252 healthcare operations, 25 of which include senior living operations across 13 states. ENSG owns 103 real-estate assets.
Its total debt is 13.3% of its capital, much lower than the industry’s average of 79.5%. Also, its times interest earned stands at 38.67X, which came against the industry’s negative average of 0.8X. As of Dec 31, 2021, it had $262.2 million of cash and cash equivalents, up 10.8% from the level at 2020 end, and a revolving line of credit of up to $350 million in available capacity, much higher than its long-term debt less current maturities of $152.8 million. This proves its balance sheet strength, which is required for carrying out growth-related investments.
Zacks Rank and Price Performance
In the past six months, its shares have gained 13.3%, outperforming the industry's growth of 10.7%.
Image Source: Zacks Investment Research
ENSG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks from the Medical space are Compugen Ltd. (CGEN - Free Report) , Humana, Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) , all carrying a Zacks Rank #2 (Buy) at present.
Based in Holon, Israel, Compugen develops therapeutic and product candidates in the United States, Israel and Europe. In the last four quarters, CGEN’s earnings beat estimates thrice and met the same once, the average surprise being 22%. Shares of CGEN have lost 60.1% in six months’ time.
Humana is one of the largest health care plan providers in the United States. Over the past seven days, HUM has witnessed its 2022 and 2023 earnings estimates move 0.1% and 0.03%, respectively. HUM’s earnings managed to surpass estimates in all its trailing four quarters, the average being 3.10%. HUM has a VGM Score of B. The stock has gained 3.2% in the past six months.
Centene Corporation is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government sponsored healthcare programs. CNC holds a VGM Score of A. Over the past seven days, CNC has witnessed its 2022 earnings estimates move 0.2% north. Over the past six months, CNC has gained 35.7%.