ENCOMPASS HEALTH CORP (EHC) Fundamental Analysis & Valuation

NYSE:EHC • US29261A1007

Current stock price

100.92 USD
-1.06 (-1.04%)
At close:
100.92 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

  • EHC had positive earnings in the past year.
  • EHC had a positive operating cash flow in the past year.
  • EHC had positive earnings in each of the past 5 years.
  • EHC had a positive operating cash flow in each of the past 5 years.
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

  • With an excellent Return On Assets value of 7.97%, EHC belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
  • The Return On Equity of EHC (23.16%) is better than 91.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.45%, EHC belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
  • EHC had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 8.38%.
  • The last Return On Invested Capital (13.45%) for EHC is above the 3 year average (12.10%), which is a sign of increasing profitability.
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's Profit Margin of 9.51% is amongst the best of the industry. EHC outperforms 96.00% of its industry peers.
  • In the last couple of years the Profit Margin of EHC has grown nicely.
  • EHC's Operating Margin of 17.74% is amongst the best of the industry. EHC outperforms 97.00% of its industry peers.
  • EHC's Operating Margin has improved in the last couple of years.
  • EHC has a Gross Margin of 95.71%. This is amongst the best in the industry. EHC outperforms 100.00% 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EHC is creating some value.
  • EHC has less shares outstanding than it did 1 year ago.
  • EHC has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, EHC has an improved debt to assets ratio.
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 2.90. 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.
  • The Altman-Z score of EHC (2.90) is better than 64.00% 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 in line with its industry peers.
  • EHC has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
  • EHC has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: EHC underperforms 62.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 5.67
Altman-Z 2.9
ROIC/WACC1.55
WACC8.66%
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

  • A Current Ratio of 1.08 indicates that EHC should not have too much problems paying its short term obligations.
  • EHC has a worse Current ratio (1.08) than 64.00% of its industry peers.
  • A Quick Ratio of 1.08 indicates that EHC should not have too much problems paying its short term obligations.
  • EHC has a Quick ratio (1.08) which 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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5

3. EHC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.25% over the past year.
  • Measured over the past years, EHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.57% on average per year.
  • Looking at the last year, EHC shows a quite strong growth in Revenue. The Revenue has grown by 10.46% in the last year.
  • 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 7.54% yearly.
EPS Next Y10.21%
EPS Next 2Y9.42%
EPS Next 3Y9.86%
EPS Next 5Y9.21%
Revenue Next Year8.28%
Revenue Next 2Y8.21%
Revenue Next 3Y8.06%
Revenue Next 5Y7.54%

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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4

4. EHC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.48, 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 75.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of EHC to the average of the S&P500 Index (27.35), we can say EHC is valued slightly cheaper.
  • EHC is valuated correctly with a Price/Forward Earnings ratio of 16.77.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EHC indicates a somewhat cheap valuation: EHC is cheaper than 69.00% of the companies listed in the same industry.
  • EHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.23.
Industry RankSector Rank
PE 18.48
Fwd PE 16.77
EHC Price Earnings VS Forward Price EarningsEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 76.00% of the companies in the same industry are more expensive than EHC, based on the Enterprise Value to EBITDA ratio.
  • EHC's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 22.84
EV/EBITDA 9.03
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

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EHC does not grow enough to justify the current Price/Earnings ratio.
  • EHC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)1.36
EPS Next 2Y9.42%
EPS Next 3Y9.86%

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4

5. EHC Dividend Analysis

5.1 Amount

  • EHC has a yearly dividend return of 0.75%, which is pretty low.
  • EHC's Dividend Yield is rather good when compared to the industry average which is at 0.46. EHC pays more dividend than 83.00% of the companies 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 0.75%

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

  • 12.59% of the earnings are spent on dividend by EHC. This is a low number and sustainable payout ratio.
DP12.59%
EPS Next 2Y9.42%
EPS Next 3Y9.86%
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 (4/27/2026, 8:04:00 PM)

After market: 100.92 0 (0%)

100.92

-1.06 (-1.04%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-05
Earnings (Next)04-30
Inst Owners101.8%
Inst Owner Change-0.12%
Ins Owners1.18%
Ins Owner Change-3.36%
Market Cap10.03B
Revenue(TTM)5.94B
Net Income(TTM)564.70M
Analysts87.5
Price Target144.07 (42.76%)
Short Float %3.42%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 0.75%
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%
PT rev (3m)0.65%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.44%
Valuation
Industry RankSector Rank
PE 18.48
Fwd PE 16.77
P/S 1.69
P/FCF 22.84
P/OCF 8.53
P/B 4.12
P/tB 12.35
EV/EBITDA 9.03
EPS(TTM)5.46
EY5.41%
EPS(NY)6.02
Fwd EY5.96%
FCF(TTM)4.42
FCFY4.38%
OCF(TTM)11.82
OCFY11.72%
SpS59.7
BVpS24.52
TBVpS8.17
PEG (NY)1.81
PEG (5Y)1.36
Graham Number54.889 (-45.61%)
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 2.9
F-Score9
WACC8.66%
ROIC/WACC1.55
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 Y10.21%
EPS Next 2Y9.42%
EPS Next 3Y9.86%
EPS Next 5Y9.21%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y10.92%
Revenue growth 5Y10.72%
Sales Q2Q%9.94%
Revenue Next Year8.28%
Revenue Next 2Y8.21%
Revenue Next 3Y8.06%
Revenue Next 5Y7.54%
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 4 / 10 to ENCOMPASS HEALTH CORP (EHC). This can be considered as Fairly Valued.


What is the profitability of EHC stock?

ENCOMPASS HEALTH CORP (EHC) has a profitability rating of 9 / 10.


How financially healthy is ENCOMPASS HEALTH CORP?

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


Can you provide the expected EPS growth for EHC stock?

The Earnings per Share (EPS) of ENCOMPASS HEALTH CORP (EHC) is expected to grow by 10.21% in the next year.