Ensign Group (NASDAQ:ENSG) continues to stand out as a solid operator in a difficult, highly fragmented market. The company is still looking at a long runway of acquire-and-improve prospects in the core skilled nursing facility (or SNF) business, not to mention opportunities to expand into related/complementary businesses like home health, hospice, and all-skill facilities. While reimbursement is not likely to ever be an easy or supportive part of the story, the opportunity to make money still seems valid for the company. The impending CareTrust spinoff seems to be adding a meaningful amount of support to the valuation, though, so I'm still not all that attracted to the value proposition here.
Growth, But Not Quite Enough Of It
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