Ensign Group (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.
Continue reading here:
Ensign Group's Model Still Works
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