ENCOMPASS HEALTH CORP (EHC) Fundamental Analysis & Valuation

NYSE:EHC • US29261A1007

Current stock price

100.37 USD
+0.07 (+0.07%)
At close:
100.37 USD
0 (0%)
After Hours:

This EHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. EHC Profitability Analysis

1.1 Basic Checks

  • In the past year EHC was profitable.
  • EHC had a positive operating cash flow in the past year.
  • In the past 5 years EHC has always been profitable.
  • Each year in the past 5 years EHC had a positive operating cash flow.
EHC Yearly Net Income VS EBIT VS OCF VS FCFEHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • EHC's Return On Assets of 7.97% is amongst the best of the industry. EHC outperforms 91.09% of its industry peers.
  • EHC's Return On Equity of 23.16% is amongst the best of the industry. EHC outperforms 90.10% of its industry peers.
  • EHC's Return On Invested Capital of 13.45% is amongst the best of the industry. EHC outperforms 90.10% of its industry peers.
  • EHC had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 8.98%.
  • The 3 year average ROIC (12.10%) for EHC is below the current ROIC(13.45%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.97%
ROE 23.16%
ROIC 13.45%
ROA(3y)6.87%
ROA(5y)6.28%
ROE(3y)22.1%
ROE(5y)21.67%
ROIC(3y)12.1%
ROIC(5y)10.97%
EHC Yearly ROA, ROE, ROICEHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • EHC has a Profit Margin of 9.51%. This is amongst the best in the industry. EHC outperforms 94.06% of its industry peers.
  • In the last couple of years the Profit Margin of EHC has grown nicely.
  • The Operating Margin of EHC (17.74%) is better than 97.03% of its industry peers.
  • In the last couple of years the Operating Margin of EHC has grown nicely.
  • EHC has a Gross Margin of 95.71%. This is amongst the best in the industry. EHC outperforms 99.01% of its industry peers.
  • In the last couple of years the Gross Margin of EHC has remained more or less at the same level.
Industry RankSector Rank
OM 17.74%
PM (TTM) 9.51%
GM 95.71%
OM growth 3Y6.98%
OM growth 5Y3.59%
PM growth 3Y15.32%
PM growth 5Y3.68%
GM growth 3Y0.13%
GM growth 5Y0.11%
EHC Yearly Profit, Operating, Gross MarginsEHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. EHC Health Analysis

2.1 Basic Checks

  • EHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, EHC has less shares outstanding
  • EHC has more shares outstanding than it did 5 years ago.
  • EHC has a better debt/assets ratio than last year.
EHC Yearly Shares OutstandingEHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
EHC Yearly Total Debt VS Total AssetsEHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • EHC has an Altman-Z score of 2.88. This is not the best score and indicates that EHC is in the grey zone with still only limited risk for bankruptcy at the moment.
  • EHC has a Altman-Z score of 2.88. This is in the better half of the industry: EHC outperforms 63.37% of its industry peers.
  • EHC has a debt to FCF ratio of 5.67. This is a neutral value as EHC would need 5.67 years to pay back of all of its debts.
  • EHC has a Debt to FCF ratio (5.67) which is comparable to the rest of the industry.
  • EHC has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.00, EHC perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 5.67
Altman-Z 2.88
ROIC/WACC1.65
WACC8.16%
EHC Yearly LT Debt VS Equity VS FCFEHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • EHC has a Current Ratio of 1.08. This is a normal value and indicates that EHC is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.08, EHC is doing worse than 60.40% of the companies in the same industry.
  • A Quick Ratio of 1.08 indicates that EHC should not have too much problems paying its short term obligations.
  • The Quick ratio of EHC (1.08) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 1.08
EHC Yearly Current Assets VS Current LiabilitesEHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. EHC Growth Analysis

3.1 Past

  • EHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.25%, which is quite impressive.
  • EHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.57% yearly.
  • EHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.46%.
  • Measured over the past years, EHC shows a quite strong growth in Revenue. The Revenue has been growing by 10.72% on average per year.
EPS 1Y (TTM)23.25%
EPS 3Y16.99%
EPS 5Y13.57%
EPS Q2Q%24.79%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y10.92%
Revenue growth 5Y10.72%
Sales Q2Q%9.94%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
  • EHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.55% yearly.
EPS Next Y10.23%
EPS Next 2Y9.44%
EPS Next 3Y9.87%
EPS Next 5Y9.21%
Revenue Next Year8.33%
Revenue Next 2Y8.22%
Revenue Next 3Y8.07%
Revenue Next 5Y7.55%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
EHC Yearly Revenue VS EstimatesEHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
EHC Yearly EPS VS EstimatesEHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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5

4. EHC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.38, which indicates a rather expensive current valuation of EHC.
  • Compared to the rest of the industry, the Price/Earnings ratio of EHC indicates a somewhat cheap valuation: EHC is cheaper than 71.29% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.70. EHC is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 16.68, the valuation of EHC can be described as correct.
  • 69.31% of the companies in the same industry are more expensive than EHC, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of EHC to the average of the S&P500 Index (23.84), we can say EHC is valued slightly cheaper.
Industry RankSector Rank
PE 18.38
Fwd PE 16.68
EHC Price Earnings VS Forward Price EarningsEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EHC is valued a bit cheaper than 75.25% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as EHC.
Industry RankSector Rank
P/FCF 22.72
EV/EBITDA 8.91
EHC Per share dataEHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • EHC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • EHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)1.35
EPS Next 2Y9.44%
EPS Next 3Y9.87%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EHC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.76%, EHC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.49, EHC pays a better dividend. On top of this EHC pays more dividend than 84.16% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, EHC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.76%

5.2 History

  • The dividend of EHC decreases each year by -8.92%.
  • EHC has paid a dividend for at least 10 years, which is a reliable track record.
  • EHC has decreased its dividend recently.
Dividend Growth(5Y)-8.92%
Div Incr Years1
Div Non Decr Years1
EHC Yearly Dividends per shareEHC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • EHC pays out 12.59% of its income as dividend. This is a sustainable payout ratio.
DP12.59%
EPS Next 2Y9.44%
EPS Next 3Y9.87%
EHC Yearly Income VS Free CF VS DividendEHC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
EHC Dividend Payout.EHC Dividend Payout, showing the Payout Ratio.EHC Dividend Payout.PayoutRetained Earnings

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EHC Fundamentals: All Metrics, Ratios and Statistics

ENCOMPASS HEALTH CORP

NYSE:EHC (3/13/2026, 8:22:39 PM)

After market: 100.37 0 (0%)

100.37

+0.07 (+0.07%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-05
Earnings (Next)04-22
Inst Owners101.43%
Inst Owner Change6%
Ins Owners1.2%
Ins Owner Change-3.37%
Market Cap9.98B
Revenue(TTM)5.94B
Net Income(TTM)564.70M
Analysts87.5
Price Target144.07 (43.54%)
Short Float %3.83%
Short Ratio2.99
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
Yearly Dividend0.71
Dividend Growth(5Y)-8.92%
DP12.59%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.65%
Min EPS beat(2)1.94%
Max EPS beat(2)11.35%
EPS beat(4)4
Avg EPS beat(4)10.51%
Min EPS beat(4)1.94%
Max EPS beat(4)14.64%
EPS beat(8)8
Avg EPS beat(8)11.26%
EPS beat(12)12
Avg EPS beat(12)13.85%
EPS beat(16)15
Avg EPS beat(16)10.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.73%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)1.16%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)8
Avg Revenue beat(12)0.34%
Revenue beat(16)10
Avg Revenue beat(16)-2.28%
PT rev (1m)0.65%
PT rev (3m)0.65%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)2.55%
EPS NY rev (3m)2.55%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.41%
Valuation
Industry RankSector Rank
PE 18.38
Fwd PE 16.68
P/S 1.68
P/FCF 22.72
P/OCF 8.49
P/B 4.09
P/tB 12.28
EV/EBITDA 8.91
EPS(TTM)5.46
EY5.44%
EPS(NY)6.02
Fwd EY6%
FCF(TTM)4.42
FCFY4.4%
OCF(TTM)11.82
OCFY11.78%
SpS59.7
BVpS24.52
TBVpS8.17
PEG (NY)1.8
PEG (5Y)1.35
Graham Number54.89
Profitability
Industry RankSector Rank
ROA 7.97%
ROE 23.16%
ROCE 16.84%
ROIC 13.45%
ROICexc 13.7%
ROICexgc 18.64%
OM 17.74%
PM (TTM) 9.51%
GM 95.71%
FCFM 7.4%
ROA(3y)6.87%
ROA(5y)6.28%
ROE(3y)22.1%
ROE(5y)21.67%
ROIC(3y)12.1%
ROIC(5y)10.97%
ROICexc(3y)12.29%
ROICexc(5y)11.11%
ROICexgc(3y)17.03%
ROICexgc(5y)16.37%
ROCE(3y)15.15%
ROCE(5y)13.74%
ROICexgc growth 3Y8.96%
ROICexgc growth 5Y3.92%
ROICexc growth 3Y11.11%
ROICexc growth 5Y12.23%
OM growth 3Y6.98%
OM growth 5Y3.59%
PM growth 3Y15.32%
PM growth 5Y3.68%
GM growth 3Y0.13%
GM growth 5Y0.11%
F-Score9
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 5.67
Debt/EBITDA 1.77
Cap/Depr 224.58%
Cap/Sales 12.41%
Interest Coverage 7.91
Cash Conversion 85.13%
Profit Quality 77.78%
Current Ratio 1.08
Quick Ratio 1.08
Altman-Z 2.88
F-Score9
WACC8.16%
ROIC/WACC1.65
Cap/Depr(3y)217.31%
Cap/Depr(5y)221.3%
Cap/Sales(3y)12.17%
Cap/Sales(5y)12.73%
Profit Quality(3y)77.97%
Profit Quality(5y)63.82%
High Growth Momentum
Growth
EPS 1Y (TTM)23.25%
EPS 3Y16.99%
EPS 5Y13.57%
EPS Q2Q%24.79%
EPS Next Y10.23%
EPS Next 2Y9.44%
EPS Next 3Y9.87%
EPS Next 5Y9.21%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y10.92%
Revenue growth 5Y10.72%
Sales Q2Q%9.94%
Revenue Next Year8.33%
Revenue Next 2Y8.22%
Revenue Next 3Y8.07%
Revenue Next 5Y7.55%
EBIT growth 1Y21.82%
EBIT growth 3Y18.67%
EBIT growth 5Y14.7%
EBIT Next Year42.87%
EBIT Next 3Y19.43%
EBIT Next 5YN/A
FCF growth 1Y21.9%
FCF growth 3Y53.39%
FCF growth 5Y8.18%
OCF growth 1Y17.23%
OCF growth 3Y18.54%
OCF growth 5Y10.78%

ENCOMPASS HEALTH CORP / EHC Fundamental Analysis FAQ

What is the fundamental rating for EHC stock?

ChartMill assigns a fundamental rating of 6 / 10 to EHC.


What is the valuation status for EHC stock?

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 financial health of ENCOMPASS HEALTH CORP (EHC) stock?

The financial health rating of ENCOMPASS HEALTH CORP (EHC) is 4 / 10.


Is the dividend of ENCOMPASS HEALTH CORP sustainable?

The dividend rating of ENCOMPASS HEALTH CORP (EHC) is 4 / 10 and the dividend payout ratio is 12.59%.