Overview Dividends

(EHC) Encompass Health - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US29261A1007

Rehabilitation Hospitals, Medical Services, Therapy Services, Nursing Care

EHC EPS (Earnings per Share)

EPS Growth (3Y CAGR): 19.56%
EPS Trend (3Y Correlation): 89.7%

EHC Revenue

Revenue Growth (3Y CAGR): 11.17%
Revenue Trend (3Y Correlation): 99.3%

Description: EHC Encompass Health

Encompass Health Corporation is a leading provider of post-acute healthcare services in the United States and Puerto Rico, operating inpatient rehabilitation hospitals that offer a range of medical, nursing, therapy, and ancillary services to patients with various medical conditions, including strokes, hip fractures, and neurological conditions.

The companys revenue streams are diversified across various payers, including Medicare, managed care plans, private insurers, and state governments. As a major player in the healthcare facilities sector, Encompass Health Corporation has a strong presence in the market, with a history dating back to 1984 and a significant footprint in the US and Puerto Rico.

From a financial perspective, Encompass Health Corporation has demonstrated a robust return on equity (RoE) of 24.66%, indicating a strong ability to generate profits from shareholder equity. The companys price-to-earnings (P/E) ratio of 22.07 and forward P/E ratio of 24.51 suggest a moderate valuation relative to its earnings growth prospects.

Some key performance indicators (KPIs) to monitor for Encompass Health Corporation include: - Occupancy rates and average daily census at its inpatient rehabilitation hospitals, - Revenue growth from Medicare and other payers, - Operating margins and EBITDA margins, - Capital expenditures and investments in new facilities or services, - Debt-to-equity ratio and interest coverage ratio.

Analyzing these KPIs can provide insights into the companys operational efficiency, financial health, and growth prospects, enabling investors to make informed decisions about their investment in Encompass Health Corporation (EHC).

EHC Stock Overview

Market Cap in USD	12,125m
Sub-Industry	Health Care Facilities
IPO / Inception	1986-09-30

EHC Stock Ratings

Growth Rating	82.8%
Fundamental	83.2%
Dividend Rating	11.9%
Return 12m vs S&P 500	14.4%
Analyst Rating	4.83 of 5

EHC Dividends

Dividend Yield 12m	0.78%
Yield on Cost 5y	1.78%
Annual Growth 5y	-12.01%
Payout Consistency	93.1%
Payout Ratio	13.7%

EHC Growth Ratios

Growth Correlation 3m	-2.1%
Growth Correlation 12m	81.6%
Growth Correlation 5y	77.4%
CAGR 5y	20.07%
CAGR/Max DD 5y	0.53
Sharpe Ratio 12m	1.53
Alpha	23.02
Beta	0.522
Volatility	22.18%
Current Volume	839.9k
Average Volume 20d	717.1k
Stop Loss	118.1 (-3%)
Signal	-2.07

Piotroski VR‑10 (Strict, 0-10) 8.0

Net Income (522.7m TTM) > 0 and > 6% of Revenue (6% = 340.1m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA 2.07pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 0.93% (prev 4.80%; Δ -3.87pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.16 (>3.0%) and CFO 1.11b > Net Income 522.7m (YES >=105%, WARN >=100%)

Net Debt (266.3m) to EBITDA (1.31b) ratio: 0.20 <= 3.0 (WARN <= 3.5)

Current Ratio 1.06 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (102.2m) change vs 12m ago 0.20% (target <= -2.0% for YES)

Gross Margin 44.58% (prev 37.86%; Δ 6.72pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 86.06% (prev 79.37%; Δ 6.69pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 7.61 (EBITDA TTM 1.31b / Interest Expense TTM 130.1m) >= 6 (WARN >= 3)

Altman Z'' 1.87

(A) 0.01 = (Total Current Assets 918.1m - Total Current Liabilities 865.1m) / Total Assets 6.79b

(B) 0.16 = Retained Earnings (Balance) 1.06b / Total Assets 6.79b

(D) 0.29 = Book Value of Equity 1.06b / Total Liabilities 3.70b

Total Rating: 1.87 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 83.15

1. Piotroski 8.0pt = 3.0

2. FCF Yield 2.48% = 1.24

3. FCF Margin 6.36% = 1.59

4. Debt/Equity 0.82 = 2.18

5. Debt/Ebitda 1.90 = 0.19

6. ROIC - WACC 10.40% = 12.50

7. RoE 22.68% = 1.89

8. Rev. Trend 99.31% = 4.97

9. Rev. CAGR 11.17% = 1.40

10. EPS Trend 89.65% = 2.24

11. EPS CAGR 19.56% = 1.96

What is the price of EHC shares?

As of August 31, 2025, the stock is trading at USD 121.76 with a total of 839,898 shares traded.
Over the past week, the price has changed by -0.87%, over one month by +12.47%, over three months by +1.60% and over the past year by +33.79%.

Is Encompass Health a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Encompass Health (NYSE:EHC) is currently (August 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 83.15 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of EHC is around 131.49 USD . This means that EHC is currently overvalued and has a potential downside of 7.99%.

Is EHC a buy, sell or hold?

Encompass Health has received a consensus analysts rating of 4.83. Therefore, it is recommended to buy EHC.

Strong Buy: 10
Buy: 2
Hold: 0
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the EHC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	135.8	11.5%
Analysts Target Price	131.3	7.8%
ValueRay Target Price	144.3	18.5%

Last update: 2025-08-18 02:03

EHC Fundamental Data Overview

Market Cap USD = 12.13b (12.13b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 99.1m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 23.4659
P/E Forward = 24.5098
P/S = 2.1388
P/B = 5.3178
Beta = 0.736
Revenue TTM = 5.67b USD
EBIT TTM = 990.7m USD
EBITDA TTM = 1.31b USD
Long Term Debt = 2.32b USD (from longTermDebt, last quarter)
Short Term Debt = 164.7m USD (from shortTermDebt, last quarter)
Debt = 2.48b USD (Calculated: Short Term 164.7m + Long Term 2.32b)
Net Debt = 266.3m USD (from netDebt column, last quarter)
Enterprise Value = 14.51b USD (12.13b + Debt 2.48b - CCE 99.1m)
Interest Coverage Ratio = 7.61 (Ebit TTM 990.7m / Interest Expense TTM 130.1m)
FCF Yield = 2.48% (FCF TTM 360.3m / Enterprise Value 14.51b)
FCF Margin = 6.36% (FCF TTM 360.3m / Revenue TTM 5.67b)
Net Margin = 9.22% (Net Income TTM 522.7m / Revenue TTM 5.67b)
Gross Margin = 44.58% ((Revenue TTM 5.67b - Cost of Revenue TTM 3.14b) / Revenue TTM)
Tobins Q-Ratio = 13.75 (Enterprise Value 14.51b / Book Value Of Equity 1.06b)
Interest Expense / Debt = 1.22% (Interest Expense 30.4m / Debt 2.48b)
Taxrate = 20.04% (from yearly Income Tax Expense: 150.2m / 749.6m)
NOPAT = 792.2m (EBIT 990.7m * (1 - 20.04%))
Current Ratio = 1.06 (Total Current Assets 918.1m / Total Current Liabilities 865.1m)
Debt / Equity = 0.82 (Debt 2.48b / last Quarter total Stockholder Equity 3.03b)
Debt / EBITDA = 1.90 (Net Debt 266.3m / EBITDA 1.31b)
Debt / FCF = 6.90 (Debt 2.48b / FCF TTM 360.3m)
Total Stockholder Equity = 2.30b (last 4 quarters mean)
RoA = 7.70% (Net Income 522.7m, Total Assets 6.79b )
RoE = 22.68% (Net Income TTM 522.7m / Total Stockholder Equity 2.30b)
RoCE = 21.42% (Ebit 990.7m / (Equity 2.30b + L.T.Debt 2.32b))
RoIC = 17.15% (NOPAT 792.2m / Invested Capital 4.62b)
WACC = 6.76% (E(12.13b)/V(14.61b) * Re(7.94%)) + (D(2.48b)/V(14.61b) * Rd(1.22%) * (1-Tc(0.20)))
Shares Correlation 5-Years: 90.0 | Cagr: 0.50%
Discount Rate = 7.94% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 80.14% ; FCFE base≈298.9m ; Y1≈342.5m ; Y5≈477.2m
Fair Price DCF = 81.87 (DCF Value 8.25b / Shares Outstanding 100.7m; 5y FCF grow 17.06% → 3.0% )
Revenue Correlation: 99.31 | Revenue CAGR: 11.17%
Rev Growth-of-Growth: 0.59
EPS Correlation: 89.65 | EPS CAGR: 19.56%
EPS Growth-of-Growth: 16.48

Additional Sources for EHC Stock

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