ENCOMPASS HEALTH CORP (EHC) Fundamental Analysis & Valuation

NYSE:EHC • US29261A1007

Current stock price

107.685 USD
+0.44 (+0.41%)
Last:

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.
  • In the past year EHC had a positive cash flow from operations.
  • 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.
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

  • The Return On Assets of EHC (7.97%) is better than 92.00% of its industry peers.
  • EHC has a Return On Equity of 23.16%. This is amongst the best in the industry. EHC outperforms 91.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 13.45%, EHC belongs to the top of the industry, outperforming 91.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EHC is above the industry average of 8.51%.
  • 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

  • Looking at the Profit Margin, with a value of 9.51%, EHC belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
  • EHC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of EHC (17.74%) is better than 96.00% of its industry peers.
  • In the last couple of years the Operating Margin of EHC has grown nicely.
  • The Gross Margin of EHC (95.71%) is better than 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

  • EHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • EHC has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, EHC has more shares outstanding
  • 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 2.97. 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 (2.97) is better than 67.00% of its industry peers.
  • The Debt to FCF ratio of EHC is 5.67, which is a neutral value as it means it would take EHC, 5.67 years of fcf income to pay off 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.
  • Looking at the Debt to Equity ratio, with a value of 1.00, EHC is doing worse than 62.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 5.67
Altman-Z 2.97
ROIC/WACC1.57
WACC8.55%
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.
  • The Current ratio of EHC (1.08) is worse than 63.00% of its industry peers.
  • EHC has a Quick 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.
  • 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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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.
  • The Earnings Per Share has been growing by 13.57% on average over the past years. This is quite good.
  • 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

  • Based on estimates for the next years, EHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.21% on average per year.
  • Based on estimates for the next years, EHC will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
EPS Next Y10.21%
EPS Next 2Y9.42%
EPS Next 3Y9.86%
EPS Next 5Y9.21%
Revenue Next Year8.29%
Revenue Next 2Y8.22%
Revenue Next 3Y8.06%
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.
  • When comparing the Revenue 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 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

  • With a Price/Earnings ratio of 19.72, EHC is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of EHC indicates a somewhat cheap valuation: EHC is cheaper than 67.00% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.86. EHC is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 17.90 indicates a rather expensive valuation of EHC.
  • 66.00% 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 (37.39), we can say EHC is valued rather cheaply.
Industry RankSector Rank
PE 19.72
Fwd PE 17.9
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EHC indicates a somewhat cheap valuation: EHC is cheaper than 74.00% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EHC is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 24.38
EV/EBITDA 9.41
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.
  • The excellent profitability rating of EHC may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)1.45
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 0.70%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.47, EHC pays a better dividend. On top of this EHC pays more dividend than 83.00% of the companies listed in the same industry.
  • With a Dividend Yield of 0.70, EHC pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.7%

5.2 History

  • The dividend of EHC decreases each year by -8.92%.
  • 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)-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 (4/13/2026, 3:43:09 PM)

107.685

+0.44 (+0.41%)

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-0.02%
Ins Owners1.18%
Ins Owner Change-3.37%
Market Cap10.71B
Revenue(TTM)5.94B
Net Income(TTM)564.70M
Analysts87.5
Price Target144.07 (33.79%)
Short Float %3.6%
Short Ratio2.93
Dividend
Industry RankSector Rank
Dividend Yield 0.7%
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)-0.17%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.43%
Valuation
Industry RankSector Rank
PE 19.72
Fwd PE 17.9
P/S 1.8
P/FCF 24.38
P/OCF 9.11
P/B 4.39
P/tB 13.18
EV/EBITDA 9.41
EPS(TTM)5.46
EY5.07%
EPS(NY)6.02
Fwd EY5.59%
FCF(TTM)4.42
FCFY4.1%
OCF(TTM)11.82
OCFY10.98%
SpS59.7
BVpS24.52
TBVpS8.17
PEG (NY)1.93
PEG (5Y)1.45
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 2.97
F-Score9
WACC8.55%
ROIC/WACC1.57
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 Year8.29%
Revenue Next 2Y8.22%
Revenue Next 3Y8.06%
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 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.