Is ENSG a high-quality business?

AlphaMadera's AlphaQuality grade scores The Ensign Group, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ENSG compares to a Buffett-style quality bar.

What is The Ensign Group, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ENSG based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ENSG a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ENSG - The Ensign Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $222.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 64.0 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

D- 31.6

5yr Avg ROIC 4.0% 30/100
Operating Margin Trend -0.44 pp/yr 35/100

Capital Efficiency

Weight: 15%

C+ 60.3

5yr Avg ROE 11.4% 67/100
5yr Share-Count CAGR 0.8% 48/100

Growth Quality

Weight: 25%

A+ 93.5

5yr Revenue CAGR 17.8% 96/100
5yr EPS CAGR 14.3% 87/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

B 75.0

5yr FCF Margin 6.6% 56/100
5yr FCF/NI Conversion 0.98x 98/100

Balance Sheet

Weight: 10%

C 55.0

Net Debt / EBITDA 6.31x 5/100
Interest Coverage (EBIT/Int) 58.04x 100/100
Altman Z-Score 3.72 91/100

Stability

Weight: 5%

C+ 61.6

EPS Volatility (σ/μ) 0.60 22/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 2 added.

Holders: 3
Avg Δ position: +130.2%
New buys: 0
Full exits: 0

Dalio increased +258%
Cooperman increased +133%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.