ENCOMPASS HEALTH CORP (EHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EHC - US29261A1007 - Common Stock
107.185 USD
-0.86 (-0.79%)
Overall EHC gets a fundamental rating of 6 out of 10. We evaluated EHC against 100 industry peers in the Health Care Providers & Services industry. EHC has an excellent profitability rating, but there are some minor concerns on its financial health. EHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EHC was profitable.
EHC had a positive operating cash flow in the past year.
EHC had positive earnings in each of the past 5 years.
Each year in the past 5 years EHC had a positive operating cash flow.
1.2 Ratios
EHC has a Return On Assets of 7.85%. This is amongst the best in the industry. EHC outperforms 91.00% of its industry peers.
EHC's Return On Equity of 22.71% is amongst the best of the industry. EHC outperforms 89.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.98%, EHC belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
EHC had an Average Return On Invested Capital over the past 3 years of 10.83%. This is in line with the industry average of 9.44%.
The 3 year average ROIC (10.83%) for EHC is below the current ROIC(12.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 22.71% | ||
| ROIC | 12.98% |
ROA(3y)5.82%
ROA(5y)5.56%
ROE(3y)21.24%
ROE(5y)20.61%
ROIC(3y)10.83%
ROIC(5y)9.67%
1.3 Margins
Looking at the Profit Margin, with a value of 9.30%, EHC belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
EHC's Profit Margin has improved in the last couple of years.
The Operating Margin of EHC (17.29%) is better than 94.00% of its industry peers.
EHC's Operating Margin has been stable in the last couple of years.
EHC has a Gross Margin of 95.65%. This is amongst the best in the industry. EHC outperforms 99.00% of its industry peers.
EHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 9.3% | ||
| GM | 95.65% |
OM growth 3Y-0.68%
OM growth 5Y1.36%
PM growth 3Y-6.23%
PM growth 5Y1.66%
GM growth 3Y0.05%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EHC is creating some value.
Compared to 1 year ago, EHC has more shares outstanding
Compared to 5 years ago, EHC has more shares outstanding
The debt/assets ratio for EHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.03 indicates that EHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of EHC (3.03) is better than 62.00% of its industry peers.
The Debt to FCF ratio of EHC is 6.04, which is on the high side as it means it would take EHC, 6.04 years of fcf income to pay off all of its debts.
EHC has a better Debt to FCF ratio (6.04) than 61.00% of its industry peers.
EHC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.01, EHC is not doing good in the industry: 61.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.52
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.14 indicates that EHC should not have too much problems paying its short term obligations.
The Current ratio of EHC (1.14) is worse than 61.00% of its industry peers.
A Quick Ratio of 1.14 indicates that EHC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, EHC is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.80% over the past year.
EHC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.58% yearly.
The Revenue has grown by 11.13% in the past year. This is quite good.
EHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.13% yearly.
EPS 1Y (TTM)22.8%
EPS 3Y1.63%
EPS 5Y2.58%
EPS Q2Q%19.42%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y10.2%
Revenue growth 5Y3.13%
Sales Q2Q%9.36%
3.2 Future
Based on estimates for the next years, EHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.24% on average per year.
Based on estimates for the next years, EHC will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y20.82%
EPS Next 2Y15.1%
EPS Next 3Y12.88%
EPS Next 5Y12.24%
Revenue Next Year10.92%
Revenue Next 2Y9.84%
Revenue Next 3Y9.27%
Revenue Next 5Y8.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.73, which indicates a rather expensive current valuation of EHC.
EHC's Price/Earnings ratio is a bit cheaper when compared to the industry. EHC is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, EHC is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.26 indicates a rather expensive valuation of EHC.
Based on the Price/Forward Earnings ratio, EHC is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
EHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 18.26 |
4.2 Price Multiples
73.00% of the companies in the same industry are more expensive than EHC, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as EHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.79 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EHC has an outstanding profitability rating, which may justify a higher PE ratio.
EHC's earnings are expected to grow with 12.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)8.03
EPS Next 2Y15.1%
EPS Next 3Y12.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, EHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.55, EHC pays a better dividend. On top of this EHC pays more dividend than 83.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, EHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of EHC decreases each year by -10.71%.
EHC has been paying a dividend for at least 10 years, so it has a reliable track record.
EHC has decreased its dividend recently.
Dividend Growth(5Y)-10.71%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EHC pays out 12.82% of its income as dividend. This is a sustainable payout ratio.
DP12.82%
EPS Next 2Y15.1%
EPS Next 3Y12.88%
NYSE:EHC (12/10/2025, 10:17:46 AM)
107.185
-0.86 (-0.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.58%
Inst Owner Change1.4%
Ins Owners1.23%
Ins Owner Change-0.01%
Market Cap10.78B
Revenue(TTM)5.80B
Net Income(TTM)539.10M
Analysts87.06
Price Target143.14 (33.54%)
Short Float %2.67%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.62
Dividend Growth(5Y)-10.71%
DP12.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.29%
Min EPS beat(2)1.94%
Max EPS beat(2)14.64%
EPS beat(4)4
Avg EPS beat(4)10.91%
Min EPS beat(4)1.94%
Max EPS beat(4)14.64%
EPS beat(8)8
Avg EPS beat(8)11.75%
EPS beat(12)12
Avg EPS beat(12)13.3%
EPS beat(16)14
Avg EPS beat(16)9.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)1.16%
Revenue beat(4)3
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)1.16%
Revenue beat(8)5
Avg Revenue beat(8)0.39%
Revenue beat(12)9
Avg Revenue beat(12)0.44%
Revenue beat(16)10
Avg Revenue beat(16)-3.55%
PT rev (1m)0.9%
PT rev (3m)3.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.73 | ||
| Fwd PE | 18.26 | ||
| P/S | 1.86 | ||
| P/FCF | 26.79 | ||
| P/OCF | 9.73 | ||
| P/B | 4.54 | ||
| P/tB | 13.85 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)5.17
EY4.82%
EPS(NY)5.87
Fwd EY5.48%
FCF(TTM)4
FCFY3.73%
OCF(TTM)11.02
OCFY10.28%
SpS57.6
BVpS23.59
TBVpS7.74
PEG (NY)1
PEG (5Y)8.03
Graham Number52.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 22.71% | ||
| ROCE | 16.42% | ||
| ROIC | 12.98% | ||
| ROICexc | 13.16% | ||
| ROICexgc | 17.91% | ||
| OM | 17.29% | ||
| PM (TTM) | 9.3% | ||
| GM | 95.65% | ||
| FCFM | 6.95% |
ROA(3y)5.82%
ROA(5y)5.56%
ROE(3y)21.24%
ROE(5y)20.61%
ROIC(3y)10.83%
ROIC(5y)9.67%
ROICexc(3y)10.95%
ROICexc(5y)9.82%
ROICexgc(3y)15.47%
ROICexgc(5y)15.57%
ROCE(3y)13.69%
ROCE(5y)12.22%
ROICexgc growth 3Y1.55%
ROICexgc growth 5Y-5.09%
ROICexc growth 3Y12.32%
ROICexc growth 5Y3.22%
OM growth 3Y-0.68%
OM growth 5Y1.36%
PM growth 3Y-6.23%
PM growth 5Y1.66%
GM growth 3Y0.05%
GM growth 5Y-0.17%
F-Score9
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 6.04 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 220.91% | ||
| Cap/Sales | 12.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.87% | ||
| Profit Quality | 74.68% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.03 |
F-Score9
WACC8.57%
ROIC/WACC1.52
Cap/Depr(3y)222.37%
Cap/Depr(5y)209.98%
Cap/Sales(3y)12.51%
Cap/Sales(5y)12.54%
Profit Quality(3y)67.08%
Profit Quality(5y)69.21%
High Growth Momentum
Growth
EPS 1Y (TTM)22.8%
EPS 3Y1.63%
EPS 5Y2.58%
EPS Q2Q%19.42%
EPS Next Y20.82%
EPS Next 2Y15.1%
EPS Next 3Y12.88%
EPS Next 5Y12.24%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y10.2%
Revenue growth 5Y3.13%
Sales Q2Q%9.36%
Revenue Next Year10.92%
Revenue Next 2Y9.84%
Revenue Next 3Y9.27%
Revenue Next 5Y8.33%
EBIT growth 1Y21.88%
EBIT growth 3Y9.45%
EBIT growth 5Y4.54%
EBIT Next Year52.35%
EBIT Next 3Y21.51%
EBIT Next 5YN/A
FCF growth 1Y54.97%
FCF growth 3Y29.84%
FCF growth 5Y9.28%
OCF growth 1Y34.84%
OCF growth 3Y11.89%
OCF growth 5Y9.56%
ENCOMPASS HEALTH CORP / EHC FAQ
What is the fundamental rating for EHC stock?
ChartMill assigns a fundamental rating of 6 / 10 to EHC.
Can you provide the valuation status for ENCOMPASS HEALTH CORP?
ChartMill assigns a valuation rating of 5 / 10 to ENCOMPASS HEALTH CORP (EHC). This can be considered as Fairly Valued.
Can you provide the profitability details for ENCOMPASS HEALTH CORP?
ENCOMPASS HEALTH CORP (EHC) has a profitability rating of 9 / 10.
What is the earnings growth outlook for ENCOMPASS HEALTH CORP?
The Earnings per Share (EPS) of ENCOMPASS HEALTH CORP (EHC) is expected to grow by 20.82% in the next year.
How sustainable is the dividend of ENCOMPASS HEALTH CORP (EHC) stock?
The dividend rating of ENCOMPASS HEALTH CORP (EHC) is 4 / 10 and the dividend payout ratio is 12.82%.