ENCOMPASS HEALTH CORP (EHC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:EHC • US29261A1007

105.39 USD
+5.83 (+5.86%)
At close: Feb 6, 2026
105.39 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall EHC gets a fundamental rating of 5 out of 10. We evaluated EHC against 102 industry peers in the Health Care Providers & Services industry. While EHC has a great profitability rating, there are some minor concerns on its financial health. EHC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year EHC was profitable.
  • EHC had a positive operating cash flow in the past year.
  • Of the past 5 years EHC 4 years were profitable.
  • EHC had a positive operating cash flow in 4 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 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of EHC (7.85%) is better than 90.20% of its industry peers.
  • Looking at the Return On Equity, with a value of 22.71%, EHC belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
  • The Return On Invested Capital of EHC (12.98%) is better than 88.24% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for EHC is in line with the industry average of 9.16%.
  • The last Return On Invested Capital (12.98%) for EHC is above the 3 year average (10.83%), which is a sign of increasing profitability.
Industry RankSector 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%
EHC Yearly ROA, ROE, ROICEHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 9.30%, EHC belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
  • EHC's Profit Margin has improved in the last couple of years.
  • EHC has a Operating Margin of 17.29%. This is amongst the best in the industry. EHC outperforms 95.10% of its industry peers.
  • EHC's Operating Margin has been stable in the last couple of years.
  • EHC has a better Gross Margin (95.65%) than 99.02% of its industry peers.
  • EHC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EHC Yearly Profit, Operating, Gross MarginsEHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EHC is still creating some value.
  • EHC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
EHC Yearly Shares OutstandingEHC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 3.00 indicates that EHC is not in any danger for bankruptcy at the moment.
  • EHC's Altman-Z score of 3.00 is fine compared to the rest of the industry. EHC outperforms 64.71% 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's Debt to FCF ratio of 6.04 is fine compared to the rest of the industry. EHC outperforms 61.76% 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.
  • EHC has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: EHC underperforms 60.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF 6.04
Altman-Z 3
ROIC/WACC1.5
WACC8.65%
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 1B 2B 3B

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 60.78% of its industry peers.
  • A Quick Ratio of 1.14 indicates that EHC should not have too much problems paying its short term obligations.
  • EHC has a Quick ratio of 1.14. This is comparable to the rest of the industry: EHC outperforms 45.10% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 1.14
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 200M 400M 600M 800M

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

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.25% over the past year.
  • The Earnings Per Share has been growing by 13.57% on average over the past years. This is quite good.
EPS 1Y (TTM)23.25%
EPS 3Y16.99%
EPS 5Y13.57%
EPS Q2Q%24.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.94%

3.2 Future

  • EHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.79% yearly.
  • EHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.49% yearly.
EPS Next Y7.49%
EPS Next 2Y8.02%
EPS Next 3Y8.79%
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y8.45%
Revenue Next 3Y7.49%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS 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 2B 4B 6B
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 2 4 6

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.30 indicates a rather expensive valuation of EHC.
  • Based on the Price/Earnings ratio, EHC is valued a bit cheaper than the industry average as 71.57% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of EHC to the average of the S&P500 Index (27.93), we can say EHC is valued slightly cheaper.
  • EHC is valuated rather expensively with a Price/Forward Earnings ratio of 17.96.
  • 69.61% of the companies in the same industry are more expensive than EHC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. EHC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.3
Fwd PE 17.96
EHC Price Earnings VS Forward Price EarningsEHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EHC is valued a bit cheaper than the industry average as 74.51% of the companies are valued more expensively.
  • EHC's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.34
EV/EBITDA 9.78
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)2.58
PEG (5Y)1.42
EPS Next 2Y8.02%
EPS Next 3Y8.79%

More info and screens

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

4

5. Dividend

5.1 Amount

  • EHC has a yearly dividend return of 0.76%, which is pretty low.
  • EHC's Dividend Yield is rather good when compared to the industry average which is at 0.47. EHC pays more dividend than 84.31% of the companies in the same industry.
  • With a Dividend Yield of 0.76, EHC pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.76%

5.2 History

  • The dividend of EHC decreases each year by -10.71%.
  • 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)-10.71%
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

  • 12.82% of the earnings are spent on dividend by EHC. This is a low number and sustainable payout ratio.
DP12.82%
EPS Next 2Y8.02%
EPS Next 3Y8.79%
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 100M 200M 300M 400M
EHC Dividend Payout.EHC Dividend Payout, showing the Payout Ratio.EHC Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

ENCOMPASS HEALTH CORP

NYSE:EHC (2/6/2026, 8:04:00 PM)

After market: 105.39 0 (0%)

105.39

+5.83 (+5.86%)

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 Owners97.62%
Inst Owner Change3.33%
Ins Owners1.23%
Ins Owner Change0.06%
Market Cap10.60B
Revenue(TTM)N/A
Net Income(TTM)539.10M
Analysts87.5
Price Target143.14 (35.82%)
Short Float %3.51%
Short Ratio3.39
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
Yearly Dividend0.62
Dividend Growth(5Y)-10.71%
DP12.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02
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%
PT rev (3m)0.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 19.3
Fwd PE 17.96
P/S 1.83
P/FCF 26.34
P/OCF 9.57
P/B 4.47
P/tB 13.61
EV/EBITDA 9.78
EPS(TTM)5.46
EY5.18%
EPS(NY)5.87
Fwd EY5.57%
FCF(TTM)4
FCFY3.8%
OCF(TTM)11.02
OCFY10.45%
SpS57.6
BVpS23.59
TBVpS7.74
PEG (NY)2.58
PEG (5Y)1.42
Graham Number53.84
Profitability
Industry RankSector 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 RankSector 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
F-Score9
WACC8.65%
ROIC/WACC1.5
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)23.25%
EPS 3Y16.99%
EPS 5Y13.57%
EPS Q2Q%24.79%
EPS Next Y7.49%
EPS Next 2Y8.02%
EPS Next 3Y8.79%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.94%
Revenue Next Year8.76%
Revenue Next 2Y8.45%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
EBIT growth 1Y21.88%
EBIT growth 3Y9.45%
EBIT growth 5Y4.54%
EBIT Next Year52.35%
EBIT Next 3Y21.67%
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 5 / 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.


Can you provide the profitability details for ENCOMPASS HEALTH CORP?

ENCOMPASS HEALTH CORP (EHC) has a profitability rating of 8 / 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 12.82%.