SAN JUAN CAPISTRANO, Calif. - The Ensign Group , Inc. (NASDAQ: NASDAQ:ENSG), a diversified provider of healthcare services, announced today the acquisition of two skilled nursing facilities in Tennessee, marking a significant expansion of its operations in the state.
The acquisitions, effective today, include Creekview Health and Rehabilitation in Knoxville with 78 beds, and Foothills Transitional Care and Rehabilitation in Maryville with 135 beds, both subject to long-term, triple net leases.
Barry Port, CEO of Ensign, expressed enthusiasm about the new additions, which follow the company's recent acquisition of TriState Health and Rehabilitation Center in Harrogate. This strategic move establishes Ensign's first cluster of facilities in Tennessee.
Tyler Albrechtsen, President of Rocky Top Healthcare LLC, an Ensign subsidiary, highlighted the company's commitment to building upon the clinical strengths of the acquired operations and delivering quality care.
In a series of separate transactions on the same day, Ensign also acquired six additional operations, five of which included real estate assets purchased by Ensign's captive real estate subsidiary, Standard Bearer Healthcare REIT, Inc. These facilities are located across Arizona, Kansas, Iowa, Utah, and Texas, with a mix of skilled nursing, assisted living, independent living units, and a long-term acute care hospital.
The latest acquisitions increase Ensign's portfolio to a total of 310 healthcare operations, including 29 senior living operations, and expand its real estate ownership to 119 assets across fourteen states. Port reaffirmed Ensign's ongoing strategy to acquire and lease a variety of healthcare-related businesses throughout the United States.
The Ensign Group's independent subsidiaries offer a wide range of services, including skilled nursing, senior living, and various rehabilitative and healthcare services. The new acquisitions are a testament to Ensign's growth strategy and its ability to integrate and enhance healthcare operations within its portfolio.
This expansion is based on a press release statement from The Ensign Group, Inc., and it reflects the company's continued efforts to extend its reach in the healthcare sector. The information provided does not imply any endorsement of the company's claims or future performance.
InvestingPro Insights
As The Ensign Group, Inc. (NASDAQ: ENSG) expands its footprint in the healthcare sector with recent acquisitions in Tennessee, investors have taken note of the company's financial health and market performance. According to InvestingPro data, Ensign Group's market capitalization stands at a robust $6.74 billion USD.
Moreover, the company's revenue growth over the last twelve months as of Q4 2023 is reported at an impressive 23.27%, signaling strong operational expansion. In terms of profitability, Ensign Group's gross profit margin during the same period was 16.39%, reflecting the company's ability to maintain a profitable business model amidst its growth initiatives.
Highlighting the company's financial prudence, one of the InvestingPro Tips suggests that Ensign Group's cash flows can sufficiently cover its interest payments, which is a positive indicator of financial stability. The company has a commendable track record of maintaining dividend payments, having done so for 18 consecutive years, a fact that may attract income-focused investors.
For investors seeking a deeper dive into the company's performance and additional insights, there are 12 more InvestingPro Tips available, which can be accessed through a subscription to the service. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a more comprehensive analysis of companies like The Ensign Group, Inc.
It is notable that the company is trading at a high earnings multiple, with a P/E ratio of 31.45 and an adjusted P/E ratio for the last twelve months of 32.16, which might indicate investor confidence in Ensign's ability to sustain its earnings growth. Furthermore, with the company trading near its 52-week high, at 92.78% of that peak, it underscores the market's optimistic outlook on Ensign's strategic acquisitions and overall business trajectory.
As Ensign Group continues to grow through strategic acquisitions, these financial metrics and insights from InvestingPro may offer investors valuable context as they consider the company's potential for long-term value creation.
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