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    ENSG  The Ensign Group Inc.

    Exchange

    NASDAQ

    Sector

    Health Care

    Industry

    Hospital/Nursing Management

    Market Cap.

    801.5M

    Poor Cash Return on Invested Capital over the past 5 years

    ENSG has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

    ENSG has only created $5.63 of cash for every $100 invested.
    Figures in USD. Fiscal year ends in December
    20072008200920102011
    Free Cash Flow -17.01M 26.85M 24.39M 31.78M 31.91M
    divided by
    Invested Capital 158.26M 197.94M 280.73M 324.44M 466.37M
    Cash ROIC -10.75% 13.56% 8.69% 9.80% 6.84%

    Excellent Return on Equity over the past 5 years

    Over the past 5 years, ENSG has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

    ENSG has generated $17.14 of Earnings for every $100 of Shareholders' Equity.
    Figures in USD. Fiscal year ends in December
    20072008200920102011
    Net Income 20.53M 27.51M 32.49M 40.53M 47.68M
    divided by
    Stockholders' Equity 129.68M 156.02M 187.56M 228.20M 277.49M
    Return on Equity 15.83% 17.63% 17.32% 17.76% 17.18%

    Mediocre Business Performance over the past 10 years

    ENSG isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

    ENSG has been unable to consistently create value for shareholders.
    Figures in USD. Fiscal year ends in December
    2002200320042005200620072008200920102011
    Free Cash Flow - - - 14.76M 16.86M -17.01M 26.85M 24.39M 31.78M 31.91M