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Encompass Health Corporation

EHC Healthcare Medical Care Facilities

Encompass Health Corporation’s revenue for fiscal 2025 (year ended December 2025) was $5.9 billion, up 10.5% from fiscal 2024.

Revenue
+8.93%
EPS
+20.6%
Free cash flow
+52.3%
Total debt
+6.83%

Quarter to September 2026, against a year earlier

137.27 4.00 −2.83%
Market cap
$13.9B
P/E
21.8×
Fwd P/E
20.9×
Dividend yield
0.55%
F-score
7/9
Altman Z
3.25
Beneish M
−2.71
Dividend safety
77/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Revenue by segment Fiscal 2025

  • Inpatient Rehabilitation

Every year since 2016 →

Insider Decisions last twelve months

Sold, $m 47.79
Trades a month
Jan 26 Apr 26 Jul 26 Oct 26
Buy — — — — — — — — — — — —
Sell — — 2 1 — 2 — — 5 — — —
Insider Ownership 0.66%

Capital & Financial Ratios $m

Size
Market Cap 13,860.00
Revenue ttm 6,338.10
Net income ttm 862.30
Free cash flow ttm 457.20
Net debt Q 2,498.90
Valuation
P/E 21.76
Forward P/E 20.90
Price / sales 2.19
Forward P/S Powerpack
Price / FCF 32.42
Price / book 3.96
Financial health
Current ratio Q 1.09
Debt / equity Q 0.74
Interest coverage Q 8.94
Growth
Revenue growth Q +8.93% (above 0%: growing)
Operating income growth Q +18.23% (above 0%: growing)
EPS, this year +15.22% (at or above 15%: strong)
EPS, next year A +9.68%
Revenue, next year A +9.06%
EPS, past 5 yrs +14.22%
EPS, next 5 yrs A +11.62%

Green and red mark values outside typical ranges; (Q) is the latest quarter, (A) analysts’ estimates. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 2.6×, against a ten-year median of 2.0×; over the ten years it ranged from 1.5× in 2017 to 2.7× in 2021.
P/E against its own 10 years 78.69%
10-year low 10-year high
P/S against its own 10 years 98.13%
10-year low 10-year high
P/B against its own 10 years 94.98%
10-year low 10-year high
EV/Sales against its own 10 years 93.18%
10-year low 10-year high
EV/FCF against its own 10 years 62.19%
10-year low 10-year high

Dividends raised 2 years running

Yield
0.55%
Annual rate
0.78
Payout ratio
12.2%
Growth, 2018–26
−0.73%/yr
  1. 0.83 ’18
  2. 0.88 ’19 +6
  3. 0.89 ’20 +2
  4. 0.89 ’21 +0
  5. 0.80 ’22 −10
  6. 0.60 ’23 −25
  7. 0.47 ’24 −22
  8. 0.70 ’25 +49
  9. 0.78 ’26 +11
paid change on the year, % Powerpack

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 104 123 103 100
Receivables 612 599 619 712
Inventory — — — —
Other 92 123 130 201
842 887 906 1,013
2023 2024 2025 Q'26
Payables 170 171 178 231
ST’ Debt 25 139 44 48
Other 212 246 290 —
656 841 836 927

Compound Annual Growth %

10y 5y 3y
Sales 6.66% 10.72% 10.92%
Cash Flow 8.88% 10.78% 18.54%
Earnings 12.05% 14.78% 27.84%
Book Value 15.23% 10.31% 20.78%

Earnings Trends EPS, adjusted, against the consensus

Q3 FY26 Estimate 1.38 Actual 1.52

Earnings per share against the consensus, by quarter
Quarter Estimate Reported Result
Q4 FY25 1.29 1.46 Beat by 0.17
Q1 FY26 1.51 1.60 Beat by 0.09
Q2 FY26 1.48 1.55 Beat by 0.07
Q3 FY26 1.38 1.52 Beat by 0.14
Q4 FY26 1.59 — Reports 4 February 2027

EPS $

Mar Jun Sep Dec Year
’26 1.93 1.54 1.50 — —
’25 1.48 1.39 1.24 1.43 5.54
’24 1.10 1.12 1.06 1.18 4.46
’23 0.87 0.90 0.84 0.86 3.47
’22 0.87 0.49 0.45 0.89 2.70
’21 1.07 1.13 1.00 0.91 4.11
’20 0.87 0.34 0.78 0.86 2.85
Fiscal quarters ending in the months shown.

Revenue $m

Mar Jun Sep Dec Year
’26 1,587 1,597 1,610 — —
’25 1,455 1,458 1,478 1,545 5,935
’24 1,316 1,301 1,351 1,405 5,373
’23 1,160 1,187 1,207 1,247 4,801
’22 1,059 1,063 1,090 1,137 4,349
’21 1,230 1,288 1,011 486 4,015
’20 1,182 1,074 1,174 136 3,566
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 313 283 362 — —
’25 289 270 271 346 1,176
’24 239 217 268 279 1,003
’23 228 207 215 201 851
’22 219 245 70 172 706
’21 159 256 178 124 716
’20 29 222 173 280 705
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 151 62 128 — —
’25 126 113 84 117 439
’24 99 61 120 80 360
’23 128 85 66 (11) 268
’22 106 132 (79) (47) 112
’21 60 132 74 (102) 164
’20 (54) 135 83 137 300
Fiscal quarters ending in the months shown.

Valuation

The price implies free cash flow after share-based pay growing 15.4% a year for ten years. It grew −1.0% a year over the last ten.

Implied
15.4%
10 years, reported
−1.0%
Open the model

Target Price Range

Analyst price targets

Recommendation Rating

1.2
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Ten-year view Analyst estimates Powerpack
Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM Sep ’26 Trend 10 yrs 2026e 2027e 2028e Next 3/yr
Income, $m
Income, $m Revenue 3,643 3,914 4,277 4,605 3,566 4,015 4,349 4,801 5,373 5,935 6,338 +5.6% 6,473 7,013 7,582 +8.5%
Gross margin, % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.0 pt
EBT 482 496 493 562 353 505 451 607 750 953 1,066 +7.9%
EBT margin, % 13.23 12.68 11.53 12.21 9.90 12.58 10.37 12.65 13.95 16.06 16.82 +2.8 pt
Net income 318 350 375 446 369 517 366 463 597 759 862 +10.1%
Per share, $
Per share, $ Revenue 40.88 41.77 43.69 46.99 36.17 40.55 43.84 48.25 53.79 59.06 64.48 +4.2%
Earnings 2.77 2.73 2.98 3.65 2.87 4.15 2.72 3.51 4.53 5.62 6.48 +8.2%
Cash flow 7.19 7.03 7.79 6.48 7.15 7.23 7.11 8.55 10.04 11.70 13.26 +5.6%
Capex (2.01) (2.65) (2.82) (4.12) (4.10) (5.58) (5.99) (5.86) (6.43) (7.33) (8.61) +15.5%
Free cash flow 5.18 4.37 4.97 2.36 3.04 1.65 1.13 2.69 3.61 4.37 4.65 (1.9%)
Book value 10.42 14.89 15.90 17.28 19.98 23.81 18.41 22.67 27.96 32.01 35.63 +13.3%
Shares, m 89 94 98 98 99 99 99 100 100 101 99 +1.3%
Valuation, ×
Valuation, × P/E 12.00 14.99 16.60 15.16 23.02 12.57 21.94 19.13 20.30 18.85 21.76 17.5
P/S 0.81 0.98 1.13 1.18 1.83 1.29 1.36 1.39 1.72 1.80 2.19 1.3
P/B 3.19 2.76 3.10 3.20 3.31 2.19 3.23 2.96 3.30 3.32 3.96 3.1
EV/Sales 1.61 1.61 1.69 1.81 2.67 2.07 1.98 1.94 2.16 2.20 2.58 2.0
EV/FCF 12.74 15.26 14.66 37.58 34.51 58.91 93.51 39.02 35.08 31.87 38.26 37.3
Cash, $m
Cash, $m Operating cash flow 640 658 762 635 705 716 706 851 1,003 1,176 1,304 +7.0%
Capex (179) (249) (276) (404) (405) (552) (594) (583) (642) (736) (846) +17.0%
Free cash flow 461 410 486 231 300 164 112 268 360 439 457 (0.5%)
Balance, $m
Balance, $m Working capital 179 185 (10) 35 231 173 141 185 46 70 86 (10.0%)
Net debt 2,915 2,461 2,386 2,910 3,000 3,166 2,714 2,608 2,375 2,388 2,499 (2.2%)
Shareholders’ equity 929 1,395 1,557 1,693 1,970 2,357 1,826 2,255 2,793 3,218 3,503 +14.8%
Returns, %
Returns, % ROA 5.33 5.68 5.82 6.37 4.54 6.19 4.34 6.00 7.21 8.31 8.93 +3.0 pt
ROIC 10.55 10.35 9.98 9.30 6.61 7.45 8.68 9.40 10.45 11.74 12.06 +1.2 pt
ROE 28.99 23.33 19.80 22.07 15.52 19.05 12.96 17.25 18.06 18.84 19.43 (10.1) pt
People
People Employees 27,968 29,370 30,060 31,570 43,000 43,400 35,000 38,000 40,000 42,000 — +4.6%
Revenue/emp, $m 0.13 0.13 0.14 0.15 0.08 0.09 0.12 0.13 0.13 0.14 — +0.9%
Negative figures in brackets.
estimates

All 10 years →

Fiscal years to Dec 2025 · latest quarter Sep 2026 · fundamentals updated 5 Nov 2026

Business profile

Updated

Encompass Health operates inpatient rehabilitation hospitals for people recovering from major illnesses or injuries. Its patients receive intensive therapy and nursing care while staying in a hospital, with the aim of regaining physical and cognitive abilities and becoming more independent. Conditions treated include strokes, hip fractures and neurological disorders.

A physician refers patients for the specific inpatient rehabilitation care they need, usually after an acute-care hospital stay. Treatment is directed by physician orders and delivered by nurses and physical, occupational and speech therapists. Case managers and other clinical staff monitor progress, document care and help plan discharge. The hospitals also use clinical protocols and technology in treatment.

Where the money comes from and where it goes Fiscal 2025

Fiscal 2025: revenue by segment, and margins
Inpatient Rehabilitation 5,935 100.00%
Gross margin 100.00%
Operating margin 17.74%
Pre-tax margin 16.06%

Revenue by segment since 2016

Encompass Health Corporation vs peers in Medical Care Facilities (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
THC Tenet Healthcare Corporation $22.8B 7.6× 7.5× +6.47% (above 0%: growing) +291.05% (above 0%: growing) +39.20% (above 0%: growing) 43.95% 31.08% Compare
EHC Encompass Health Corporation $13.9B 21.8× 20.9× +8.93% (above 0%: growing) +20.63% (above 0%: growing) +52.33% (above 0%: growing) 100.00% 17.89%
FMS Fresenius Medical Care AG & Co. KGaA $12.6B 12.6× 14.4× −0.49% (below 0%: shrinking) −10.55% (below 0%: shrinking) −3.47% (below 0%: shrinking) 25.83% 7.78% Compare
DVA DaVita Inc. $12.3B 14.0× 13.0× +4.62% (above 0%: growing) +66.99% (above 0%: growing) −45.83% (below 0%: shrinking) 31.50% 13.95% Compare
UHS Universal Health Services, Inc. $11.7B 8.2× 8.0× +5.30% (above 0%: growing) −9.98% (below 0%: shrinking) +216.74% (above 0%: growing) 90.99% 9.60% Compare
ENSG The Ensign Group, Inc. $10.6B 26.3× 25.4× +14.47% (above 0%: growing) +23.64% (above 0%: growing) +89.21% (above 0%: growing) 16.86% 9.30% Compare
PACS PACS Group, Inc. $8.0B 28.6× 21.8× +11.45% (above 0%: growing) +16.36% (above 0%: growing) −4.31% (below 0%: shrinking) 17.23% 6.65% Compare
CHE Chemed Corporation $7.0B 25.5× 24.0× +10.57% (above 0%: growing) +23.09% (above 0%: growing) −45.25% (below 0%: shrinking) 33.72% 13.96% Compare
CON Concentra Group Holdings Parent, Inc. $5.4B 24.9× 25.2× +8.61% (above 0%: growing) +36.84% (above 0%: growing) −19.76% (below 0%: shrinking) 31.42% 18.52% Compare
Median of peers $11.2B 19.5× 18.1× +7.54% +23.37% −3.89% 31.46% 11.78%

All 51 Medical Care Facilities stocks →

From the latest earnings call

Updated

  • CEO Mark Tarr said demand for inpatient rehabilitation remained strong and described plans to expand hospital capacity and enter more North Carolina markets.
  • Douglas Coltharp said patient acuity helped first-half pricing but cautioned that the benefit might not continue through the second half.

Largest institutional holders 13F, quarter to 30 June 2026

Held by institutions 96.19%
Held by the ten largest 44.56%
Holder Shares Stake Change
BlackRock 10.48m 10.63% −284.33k
Vanguard 10.21m 10.35% −16.12k
T. Rowe Price 5.15m 5.22% −2.68m
Wellington Management 3.28m 3.32% −570.12k
State Street 3.19m 3.23% +40.82k
Citadel Advisors 2.56m 2.60% +2.05m
AllianceBernstein 2.47m 2.51% −149.49k
FULLER & THALER ASSET MANAGEMENT, INC. 2.46m 2.49% +230.68k
Two Sigma 2.27m 2.30% +45.57k
Geode Capital Management 1.89m 1.92% −7.92k
13F filings for the quarter to 30 June 2026: long positions in US-listed shares reported by managers with $100m or more, ~45 days after the quarter.

Pay and ownership Proxy statement filed 7 April 2026

Chief executive’s pay

Year Total pay Actually paid $100 invested
2025 10.30m 20.62m 170.02
2024 9.30m 17.93m 146.98
2023 8.84m 14.07m 105.61
2022 7.74m 9.87m 93.78
2021 8.25m 6.23m 80.10

Ownership

Directors and executive officers, together 1.80%
The Vanguard Group 10.20%
BlackRock, Inc. 9.20%
Invesco Ltd. 5.00%
Total pay is as the Summary Compensation Table states it; actually paid revalues the year’s share awards at its end, as the SEC’s pay-versus-performance rule asks. $100 invested is what $100 in the company’s shares at the start of the earliest year shown was worth at each year’s end. Ownership is the proxy’s own table: the directors and officers as a group, and every holder of 5% or more. Read the proxy statement

Encompass Health Corporation (EHC) Latest News

30 Oct

Impact 3 · · MarketBeat

29 Oct

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28 Oct

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19 Oct

Impact 3 · · PR Newswire

16 Oct

Impact 3 · · Zacks

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Impact 3 · · StockStory

7 Oct

Impact 4 · · Zacks

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Impact 3 · · PR Newswire

28 Sep

Impact 4 ·
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25 Sep

Impact 4 · · Zacks

24 Sep

Impact 4 · · PR Newswire
Impact 3 · · Zacks

7 Sep

Impact 4 ·

25 Aug

Impact 4 ·

14 Aug

Impact 3 ·

EHC metrics, ten years each

stockrow.com/EHC · Data as of Nov 5, 2026 · For information only; not investment advice. · © 2026 stockrow.com