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

Taking everything into account, EHC scores 5 out of 10 in our fundamental rating. EHC was compared to 102 industry peers in the Health Care Providers & Services industry. EHC scores excellent on profitability, but 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

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

1.2 Ratios

  • EHC's Return On Assets of 7.85% is amongst the best of the industry. EHC outperforms 90.20% of its industry peers.
  • The Return On Equity of EHC (22.71%) is better than 90.20% of its industry peers.
  • EHC has a better Return On Invested Capital (12.98%) than 88.24% of its industry peers.
  • 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 9.16%.
  • The 3 year average ROIC (10.83%) for EHC is below the current ROIC(12.98%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 9.30%, EHC belongs to the top 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 better Operating Margin (17.29%) than 95.10% of its industry peers.
  • In the last couple of years the Operating Margin of EHC has remained more or less at the same level.
  • With an excellent Gross Margin value of 95.65%, EHC belongs to the best of the industry, outperforming 99.02% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EHC has remained more or less at the same level.
Industry RankSector Rank
OM 17.29%
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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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.
  • There is no outstanding debt for EHC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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 2.92 indicates that EHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.92, EHC is doing good in the industry, outperforming 62.75% of the companies in the same industry.
  • 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 Debt to FCF ratio of 6.04. This is in the better half 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 2.92
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

  • EHC has a Current Ratio of 1.14. This is a normal value and indicates that EHC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.14, EHC is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
  • EHC has a Quick Ratio of 1.14. This is a normal value and indicates that EHC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.14, EHC perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
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.
  • EHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.57% yearly.
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

  • Based on estimates for the next years, EHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
  • Based on estimates for the next years, EHC will show a small growth in Revenue. The Revenue will grow by 7.49% on average per year.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • With a Price/Earnings ratio of 19.30, EHC is valued on the expensive side.
  • 72.55% of the companies in the same industry are more expensive than EHC, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, EHC is valued a bit cheaper.
  • EHC is valuated rather expensively with a Price/Forward Earnings ratio of 17.96.
  • 73.53% of the companies in the same industry are more expensive than EHC, based on the Price/Forward Earnings ratio.
  • EHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.78.
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

  • 74.51% 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 RankSector Rank
P/FCF 26.34
EV/EBITDA 9.33
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 an expensive valuation of the company.
  • 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.
  • Compared to an average S&P500 Dividend Yield of 1.81, 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 -10.71%.
  • EHC has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of EHC decreased 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

  • EHC pays out 12.82% of its income as dividend. This is a 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

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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 Change-0.39%
Ins Owners1.23%
Ins Owner Change0.04%
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)-0.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
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 9.33
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 2.92
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%.