We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ensign Group (ENSG) Continues to Grow on Inorganic Path
Read MoreHide Full Article
The Ensign Group, Inc. (ENSG - Free Report) has acquired the real estate and operations of three skilled nursing and one intermediate care facilities across Idaho and Utah. The facilities -- which include Meadow View Nursing and Rehabilitation, Utah Valley Healthcare and Rehabilitation -- acquisition were effective May 1, and the Heritage Park Healthcare and Rehabilitation and Wide Horizons Intermediate Care Facility acquisitions were effective Jun 1.
Much of Ensign Group’s historical growth can be attributed to its expertise in acquiring real estate or leasing both under-performing and well-performing post-acute care operations. Subsequently, the company applies its core operating know-how to improve upon each acquired operation, both clinically and financially.
In April, the company acquired the Rehabilitation Center of Des Moines – a skilled nursing operation with 74 beds.
The latest acquisition brings Ensign Group's growing portfolio to 216 healthcare facilities, 18 hospice agencies, 17 home health agencies and three home care businesses across 14 states.
Its stock price also reflects inorganic growth efforts that have helped it to perform better then the sub industry. Though the company’s share price declined 9.1% in the past one year, it was still better off than the loss of 17.6% suffered by the Zacks categorized Medical - Nursing Homes industry.
In the last few years, the company’s acquisition activity accelerated. It added 108 facilities between Jan 1, 2012 and Dec 31, 2016. From Jan 1, 2008 through Dec 31, 2016, it acquired 149 facilities, which added 11,288 operational skilled nursing beds and 3,872 assisted and independent living units to its operating subsidiaries.
Last year, Ensign Group expanded its operations with the addition of two home health agencies and five hospice agencies. In addition, it acquired 18 stand-alone skilled nursing facilities and one post-acute care campus through a combination of long-term leases and purchases.
The company spent $64.5 million on acquisitions in 2016. In 2015 and 2014, the company spent nearly $120 million and $96 million, respectively, on buyouts.
The skilled nursing industry, in which the company operates, is large and highly fragmented, characterized predominantly by numerous local and regional providers. This fragmentation brings significant acquisition and consolidation opportunities for the companies in this space.
Last December, Universal Health Services, Inc. (UHS - Free Report) acquired Cambian Group, PLC's Adult Services Division, which will significantly expand the company's market presence in the United Kingdom. Another company, Acadia Healthcare Company Inc. (ACHC - Free Report) , recently took over Priory Group which added 327 facilities, making Acadia Healthcare one of the largest independent providers of mental health services in the U.K.
Zacks Rank & Key Player
Ensign Group carries a Zacks Rank #3 (Hold). A better-ranked player in the space is Tivity Health, Inc. . The stock carries a Zacks Rank #2 (Buy). It beat estimates in three of the last four reported quarters, with an average positive surprise of 1322.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ensign Group (ENSG) Continues to Grow on Inorganic Path
The Ensign Group, Inc. (ENSG - Free Report) has acquired the real estate and operations of three skilled nursing and one intermediate care facilities across Idaho and Utah. The facilities -- which include Meadow View Nursing and Rehabilitation, Utah Valley Healthcare and Rehabilitation -- acquisition were effective May 1, and the Heritage Park Healthcare and Rehabilitation and Wide Horizons Intermediate Care Facility acquisitions were effective Jun 1.
Much of Ensign Group’s historical growth can be attributed to its expertise in acquiring real estate or leasing both under-performing and well-performing post-acute care operations. Subsequently, the company applies its core operating know-how to improve upon each acquired operation, both clinically and financially.
In April, the company acquired the Rehabilitation Center of Des Moines – a skilled nursing operation with 74 beds.
The latest acquisition brings Ensign Group's growing portfolio to 216 healthcare facilities, 18 hospice agencies, 17 home health agencies and three home care businesses across 14 states.
Its stock price also reflects inorganic growth efforts that have helped it to perform better then the sub industry. Though the company’s share price declined 9.1% in the past one year, it was still better off than the loss of 17.6% suffered by the Zacks categorized Medical - Nursing Homes industry.
In the last few years, the company’s acquisition activity accelerated. It added 108 facilities between Jan 1, 2012 and Dec 31, 2016. From Jan 1, 2008 through Dec 31, 2016, it acquired 149 facilities, which added 11,288 operational skilled nursing beds and 3,872 assisted and independent living units to its operating subsidiaries.
Last year, Ensign Group expanded its operations with the addition of two home health agencies and five hospice agencies. In addition, it acquired 18 stand-alone skilled nursing facilities and one post-acute care campus through a combination of long-term leases and purchases.
The company spent $64.5 million on acquisitions in 2016. In 2015 and 2014, the company spent nearly $120 million and $96 million, respectively, on buyouts.
The skilled nursing industry, in which the company operates, is large and highly fragmented, characterized predominantly by numerous local and regional providers. This fragmentation brings significant acquisition and consolidation opportunities for the companies in this space.
Last December, Universal Health Services, Inc. (UHS - Free Report) acquired Cambian Group, PLC's Adult Services Division, which will significantly expand the company's market presence in the United Kingdom. Another company, Acadia Healthcare Company Inc. (ACHC - Free Report) , recently took over Priory Group which added 327 facilities, making Acadia Healthcare one of the largest independent providers of mental health services in the U.K.
Zacks Rank & Key Player
Ensign Group carries a Zacks Rank #3 (Hold). A better-ranked player in the space is Tivity Health, Inc. . The stock carries a Zacks Rank #2 (Buy). It beat estimates in three of the last four reported quarters, with an average positive surprise of 1322.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.