(EHC) Encompass Health - Overview
Stock: Inpatient Rehabilitation, Post-Acute Care, Stroke Recovery, Neurological Therapy
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.64% |
| Yield on Cost 5y | 1.16% |
| Yield CAGR 5y | -11.09% |
| Payout Consistency | 93.6% |
| Payout Ratio | 18.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 21.5% |
| Relative Tail Risk | -6.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.21 |
| Alpha | -14.13 |
| Character TTM | |
|---|---|
| Beta | 0.477 |
| Beta Downside | 0.364 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.09% |
| CAGR/Max DD | 0.67 |
Description: EHC Encompass Health January 03, 2026
Encompass Health Corporation (NYSE:EHC) operates a network of inpatient rehabilitation hospitals across the United States and Puerto Rico, delivering medical, nursing, therapy, and ancillary services to patients recovering from strokes, hip fractures, and other severe neurological conditions. The company’s revenue is primarily derived from Medicare, with additional payments from managed-care plans, private insurers, and state programs. Formerly HealthSouth, the firm rebranded to Encompass Health in January 2018 and is headquartered in Birmingham, Alabama.
Key recent metrics: FY 2023 reported revenue of approximately $4.5 billion, with an average hospital occupancy rate of roughly 85 %, reflecting strong demand for post-acute care. The sector is being driven by an aging U.S. population, increasing prevalence of chronic conditions, and a shift toward value-based reimbursement models that favor outcomes-based rehabilitation services. Encompass Health has been expanding its outpatient therapy footprint, which now accounts for about 15 % of total revenue, positioning the company to capture growth beyond inpatient stays.
For a deeper dive into how these trends translate into valuation insights, you might explore the analytical tools available on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 541.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.86 > 1.0 |
| NWC/Revenue: 1.86% < 20% (prev 0.70%; Δ 1.16% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.11b > Net Income 541.0m |
| Net Debt (2.61b) to EBITDA (1.34b): 1.95 < 3 |
| Current Ratio: 1.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (102.3m) vs 12m ago 0.20% < -2% |
| Gross Margin: 43.76% > 18% (prev 0.41%; Δ 4335 % > 0.5%) |
| Asset Turnover: 86.99% > 50% (prev 80.75%; Δ 6.25% > 0%) |
| Interest Coverage Ratio: 8.12 > 6 (EBITDA TTM 1.34b / Interest Expense TTM 126.0m) |
Altman Z'' 2.02
| A: 0.02 (Total Current Assets 869.8m - Total Current Liabilities 762.0m) / Total Assets 6.87b |
| B: 0.17 (Retained Earnings 1.16b / Total Assets 6.87b) |
| C: 0.15 (EBIT TTM 1.02b / Avg Total Assets 6.66b) |
| D: 0.32 (Book Value of Equity 1.16b / Total Liabilities 3.68b) |
| Altman-Z'' Score: 2.02 = BBB |
Beneish M -3.13
| DSRI: 0.95 (Receivables 610.8m/576.4m, Revenue 5.80b/5.21b) |
| GMI: 0.95 (GM 43.76% / 41.40%) |
| AQI: 0.97 (AQ_t 0.27 / AQ_t-1 0.28) |
| SGI: 1.11 (Revenue 5.80b / 5.21b) |
| TATA: -0.08 (NI 541.0m - CFO 1.11b) / TA 6.87b) |
| Beneish M-Score: -3.13 (Cap -4..+1) = AA |
What is the price of EHC shares?
Over the past week, the price has changed by -0.04%, over one month by -11.20%, over three months by -18.19% and over the past year by -4.83%.
Is EHC a buy, sell or hold?
- StrongBuy: 10
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the EHC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 140.3 | 46.7% |
| Analysts Target Price | 140.3 | 46.7% |
| ValueRay Target Price | 99.5 | 4% |
EHC Fundamental Data Overview February 02, 2026
P/E Forward = 15.8983
P/S = 1.6429
P/B = 4.0089
Revenue TTM = 5.80b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.34b USD
Long Term Debt = 2.39b USD (from longTermDebt, last quarter)
Short Term Debt = 64.9m USD (from shortTermDebt, last quarter)
Debt = 2.66b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.61b USD (from netDebt column, last quarter)
Enterprise Value = 12.13b USD (9.52b + Debt 2.66b - CCE 48.7m)
Interest Coverage Ratio = 8.12 (Ebit TTM 1.02b / Interest Expense TTM 126.0m)
EV/FCF = 30.14x (Enterprise Value 12.13b / FCF TTM 402.6m)
FCF Yield = 3.32% (FCF TTM 402.6m / Enterprise Value 12.13b)
FCF Margin = 6.95% (FCF TTM 402.6m / Revenue TTM 5.80b)
Net Margin = 9.33% (Net Income TTM 541.0m / Revenue TTM 5.80b)
Gross Margin = 43.76% ((Revenue TTM 5.80b - Cost of Revenue TTM 3.26b) / Revenue TTM)
Gross Margin QoQ = 46.88% (prev 43.01%)
Tobins Q-Ratio = 1.77 (Enterprise Value 12.13b / Total Assets 6.87b)
Interest Expense / Debt = 1.16% (Interest Expense 30.8m / Debt 2.66b)
Taxrate = 20.42% (44.9m / 219.9m)
NOPAT = 813.9m (EBIT 1.02b * (1 - 20.42%))
Current Ratio = 1.14 (Total Current Assets 869.8m / Total Current Liabilities 762.0m)
Debt / Equity = 1.12 (Debt 2.66b / totalStockholderEquity, last quarter 2.37b)
Debt / EBITDA = 1.95 (Net Debt 2.61b / EBITDA 1.34b)
Debt / FCF = 6.49 (Net Debt 2.61b / FCF TTM 402.6m)
Total Stockholder Equity = 2.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.12% (Net Income 541.0m / Total Assets 6.87b)
RoE = 24.37% (Net Income TTM 541.0m / Total Stockholder Equity 2.22b)
RoCE = 22.17% (EBIT 1.02b / Capital Employed (Equity 2.22b + L.T.Debt 2.39b))
RoIC = 17.37% (NOPAT 813.9m / Invested Capital 4.69b)
WACC = 6.20% (E(9.52b)/V(12.18b) * Re(7.67%) + D(2.66b)/V(12.18b) * Rd(1.16%) * (1-Tc(0.20)))
Discount Rate = 7.67% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 81.65 | Cagr: 0.39%
[DCF Debug] Terminal Value 87.38% ; FCFF base≈345.0m ; Y1≈425.6m ; Y5≈724.8m
Fair Price DCF = 164.6 (EV 19.18b - Net Debt 2.61b = Equity 16.56b / Shares 100.6m; r=6.20% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 2.79 | EPS CAGR: -47.37% | SUE: -4.0 | # QB: 0
Revenue Correlation: 84.83 | Revenue CAGR: 3.08% | SUE: -0.16 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.50 | Chg30d=+0.002 | Revisions Net=+1 | Analysts=10
EPS next Year (2026-12-31): EPS=5.80 | Chg30d=+0.005 | Revisions Net=+1 | Growth EPS=+9.0% | Growth Revenue=+8.6%