Is ENSIGN GROUP, INC (ENSG) Halal?

NASDAQ Healthcare United States $11.7B
✓ HALAL
Confidence: 95/100
ENSIGN GROUP, INC (ENSG) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 18.3% against the AAOIFI threshold of 30%, ENSIGN GROUP, INC comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Medical Care Facilities), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 18.3%
/ 30%
4.8%
/ 30%
5.3%
/ 30%
0.48%
/ 5%
✓ HALAL
DJIM 18.3%
/ 33%
4.8%
/ 33%
5.3%
/ 33%
0.48%
/ 5%
✓ HALAL
MSCI 40.4%
/ 33%
10.5%
/ 33%
11.7%
/ 33%
0.48%
/ 5%
✗ NOT HALAL
S&P 18.3%
/ 33%
4.8%
/ 33%
5.3%
/ 33%
0.48%
/ 5%
✓ HALAL
FTSE 40.4%
/ 33%
10.5%
/ 33%
11.7%
/ 50%
0.48%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
34.4
Forward: 24.4
EPS
$5.84
Dividend Yield
13.0%
Payout: 4.3%
P/B Ratio
5.2
EV/EBITDA
25.0
EV: $13.2B
Revenue
$5.1B
Growth: 20.2%
Beta
0.8
Average volatility
Current Ratio
1.4

Profitability

Gross Margin 16.3%
Operating Margin 9.1%
Net Margin 6.8%
Return on Equity (ROE) 16.9%
Return on Assets (ROA) 5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$564M
Free Cash Flow$371M
Total Debt$2.2B
Debt-to-Equity98.7
Current Ratio1.4
Total Assets$5.5B

Price & Trading

Last Close$201.99
50-Day MA$198.77
200-Day MA$176.10
Avg Volume374K
Beta0.8
52-Week Range
$118.73
$218.00

About ENSIGN GROUP, INC (ENSG)

CEO
Mr. Barry R. Port
Employees
46,000
Sector
Healthcare
Industry
Medical Care Facilities
Country
United States
Exchange
NASDAQ
Market Cap
$11.7B
Currency
USD

The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The Skilled Services segment provides short and long-term nursing care services for patients with chronic conditions, prolonged illness, and the elderly; specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management; and standard services, such as room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. The Standard Bearer segment leases post-acute care properties to healthcare operators. In addition, the company operates senior living units; and provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. The company operates healthcare facilities in Alabama, Alaska, Arizona, Colorado, Idaho, Iowa, Kansas, Oregon, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington, and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.

Purification Calculator

As a halal stock with 0.48% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ENSIGN GROUP, INC (ENSG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ENSIGN GROUP, INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is ENSIGN GROUP, INC's debt ratio?

ENSIGN GROUP, INC's debt ratio is 18.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 40.4%.

Does ENSIGN GROUP, INC require dividend purification?

Yes, ENSIGN GROUP, INC has an impermissible income ratio of 0.48%, which means 0.48% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are ENSIGN GROUP, INC's key financial metrics?

ENSIGN GROUP, INC has a market capitalization of $11.7B, trailing P/E ratio of 34.4, and revenue of $5.1B. The company maintains a gross margin of 16.3% and a net margin of 6.8%. Return on equity stands at 16.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.