EHC Stock Analysis: Encompass Health | NYSE
Medical Care Facilities | NYSE, USA | Market Cap: 10.983m USD | 12M Return: -5.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 116M
EPS Trend: 99.9%
Qual. Beats: 13
Rev. Trend: 99.9%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Encompass Health Corporation (NYSE: EHC) is a Birmingham, Alabama-based operator of inpatient rehabilitation hospitals across the United States and Puerto Rico. Founded in 1984 and formerly known as HealthSouth Corporation before its 2018 rebranding, the company provides specialized inpatient rehabilitative care to patients recovering from major injuries or illnesses, with a clinical focus on stroke, neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. Revenue is generated through a mix of payers, with the Medicare program and federal government representing a major source, alongside managed care plans, private insurers, state governments, and direct-pay patients.
As a mid-cap Health Care Facilities issuer within the post-acute care sector, Encompass Health operates one of the largest networks of inpatient rehabilitation facilities (IRFs) in the U.S. IRFs operate under a distinct Medicare prospective payment system (PPS) separate from general acute-care hospitals and skilled nursing facilities, and the companys payer mix and referral relationships with acute-care hospitals are central to its operating model.
- Medicare reimbursement rate changes impact revenue per discharge
- New inpatient rehabilitation hospital openings drive top-line growth
- Wage inflation pressures margin expansion at existing facilities
| Net Income: 609.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.53 > 1.0 |
| NWC/Revenue: 2.51% < 20% (prev 1.00%; Δ 1.51% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.20b > Net Income 609.2m |
| Net Debt (2.80b) to EBITDA (1.46b): 1.92 < 3 |
| Current Ratio: 1.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (100.6m) vs 12m ago -1.47% < -2% |
| Gross Margin: 58.82% > 18% (prev 42.05%; Δ 16.77% > 0.5%) |
| Asset Turnover: 86.95% > 50% (prev 83.00%; Δ 3.94% > 0%) |
| Interest Coverage Ratio: 9.14 > 6 (EBIT TTM 1.13b / Interest Expense TTM 123.2m) |
| A: 0.02 (Total Current Assets 1.03b - Total Current Liabilities 876.8m) / Total Assets 7.31b |
| B: 0.20 (Retained Earnings 1.46b / Total Assets 7.31b) |
| C: 0.16 (EBIT TTM 1.13b / Avg Total Assets 6.98b) |
| D: 0.64 (Book Value of Equity 2.52b / Total Liabilities 3.95b) |
| Altman-Z'' = 2.55 = A |
| DSRI: 0.99 (Receivables 676.0m/623.4m, Revenue 6.07b/5.51b) |
| GMI: 0.71 (GM 42.05% / 58.82%) |
| AQI: 0.95 (AQ_t 0.25 / AQ_t-1 0.27) |
| SGI: 1.10 (Revenue 6.07b / 5.51b) |
| TATA: -0.08 (NI 609.2m - CFO 1.20b) / TA 7.31b) |
| Beneish M = -3.27 (Cap -4..+1) = AA |
As of July 11, 2026, the stock is trading at USD 110.16 with a total of 778,151 shares traded. Over the past week, the price has changed by +3.48%, over one month by +6.79%, over three months by +2.91% and over the past year by -5.57%.
Current recommended Stop Loss: 106.20 (which is 3.6% or 1.2 ATR below the current price).
Encompass Health has received a consensus analysts rating of 4.83. Therefore, it is recommended to buy EHC.
- StrongBuy: 10
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 140.5 | 27.5% |
P/E Trailing = 18.9589
P/E Forward = 17.0648
P/S = 1.8105
P/B = 4.1879
P/EG = 0.4094
Revenue TTM = 6.07b USD
EBIT TTM = 1.13b USD
EBITDA TTM = 1.46b USD
Long Term Debt = 2.53b USD (from longTermDebt, last quarter)
Short Term Debt = 69.8m USD (from shortTermDebt, last quarter)
Debt = 3.00b USD (from shortLongTermDebtTotal, last quarter) + Leases 215.6m
Net Debt = 2.80b USD (calculated: Debt 3.00b - CCE 200.5m)
Enterprise Value = 13.8b USD (11.0b + Debt 3.00b - CCE 200.5m)
Interest Coverage Ratio = 9.14 (Ebit TTM 1.13b / Interest Expense TTM 123.2m)
EV/FCF = 29.69x (Enterprise Value 13.8b / FCF TTM 464.4m)
FCF Yield = 3.37% (FCF TTM 464.4m / Enterprise Value 13.8b)
FCF Margin = 7.66% (FCF TTM 464.4m / Revenue TTM 6.07b)
Net Margin = 10.04% (Net Income TTM 609.2m / Revenue TTM 6.07b)
Gross Margin = 58.82% ((Revenue TTM 6.07b - Cost of Revenue TTM 2.50b) / Revenue TTM)
Gross Margin QoQ = 48.44% (prev none%)
Tobins Q-Ratio = 1.89 (Enterprise Value 13.8b / Total Assets 7.31b)
Interest Expense / Debt = 4.10% (Interest Expense 123.2m / Debt 3.00b)
Taxrate = 20.71% (207.7m / 1.00b)
NOPAT = 893.1m (EBIT 1.13b * (1 - 20.71%))
Current Ratio = 1.17 (Total Current Assets 1.03b / Total Current Liabilities 876.8m)
Debt / Equity = 1.19 (Debt 3.00b / totalStockholderEquity, last quarter 2.52b)
Debt / EBITDA = 1.92 (Net Debt 2.80b / EBITDA 1.46b)
Debt / FCF = 6.04 (Net Debt 2.80b / FCF TTM 464.4m)
Total Stockholder Equity = 2.40b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.73% (Net Income 609.2m / Total Assets 7.31b)
RoE = 25.35% (Net Income TTM 609.2m / Total Stockholder Equity 2.40b)
RoCE = 22.83% (EBIT 1.13b / Capital Employed (Equity 2.40b + L.T.Debt 2.53b))
RoIC = 14.16% (NOPAT 893.1m / Invested Capital 6.31b)
WACC = 7.31% (E(11.0b)/V(14.0b) * Re(8.42%) + D(3.00b)/V(14.0b) * Rd(4.10%) * (1-Tc(0.21)))
Discount Rate = 8.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 2.33 | Cagr: -0.40%
[DCF] Terminal Value 77.97% ; FCFF base≈433.2m ; Y1≈496.6m ; Y5≈730.9m
[DCF] Fair Price = 82.60 (EV 11.0b - Net Debt 2.80b = Equity 8.19b / Shares 99.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.86 | EPS CAGR: 21.19% | SUE: 2.05 | # QB: 13
Revenue Correlation: 99.94 | Revenue CAGR: 11.05% | SUE: 1.14 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.48 | Chg30d=+0.00% | Revisions=+0% | Analysts=13
EPS next Quarter (2026-09-30): EPS=1.36 | Chg30d=+0.00% | Revisions=-7% | Analysts=13
EPS current Year (2026-12-31): EPS=6.01 | Chg30d=+0.00% | Revisions=+80% | GrowthEPS=+10.2% | GrowthRev=+8.2%
EPS next Year (2027-12-31): EPS=6.54 | Chg30d=+0.00% | Revisions=+40% | GrowthEPS=+8.8% | GrowthRev=+8.1%
[Analyst] Revisions Ratio: +35% (up=31, down=14)