Forensic Analysis · Healthcare Providers & Services · as of Nov 8, 2026
Ensign Group, Inc (ENSG)
A forensic read on Ensign Group, Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
2.8
Distress distance
Clean
Earnings quality
2
Forensic signals
16.9%
ROE
18.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Ensign Group, Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 2.8, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+20.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +20.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by PP&E up +31% against revenue +19% and receivables up +12% against revenue +19%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 13% of net operating assets, against an accruals ratio of 20.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
8.5%
FY2025
Return on invested capital.Return on invested capital is 8.5% in the latest fiscal year and rising across FY2023–FY2025 from 6.7%. After-tax operating profit was $196M in FY2023 and $321M in FY2025, with operating income at 6.8% of revenue in FY2023, 8.4% in FY2024 and 8.4% in FY2025. The capital base behind it grew +28% across FY2023–FY2025, from $2.9B to $3.8B, and the return did not fall doing it, so the dollars added over that window earned at least the 6.7% the older base was already earning.
Key fundamentals
Latest Revenue$5.06B
Revenue Growth YoY+18.7%
Revenue CAGR (2yr)+16.5%
Net Margin6.8%
Return on Equity16.9%
Debt / Equity0.06x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Ensign Group, Inc's actual 10-K/10-Q/8-K filings?