Encompass Health Corporation EHC

123.47 1.46 1.20% as of 25 Sep
Market cap
$12.0B
P/E
19.9×
Growth Flags show if company had growth for consecutive years

Insider Decisions

Total sells 47.79
in millions of $
Nov 25 Feb 26 May 26 Aug 26
Buy — — — — — — — — — — — —
Sell — — — — 2 1 — 2 — — 5 —
Insider Ownership 1.16%

Capital & Financial Ratios

Market Cap 12,040.00
Revenue 6,206.10
Net Income 833.30
Free Cash Flow 413.40
Net Debt 2,500.50
Current Ratio 1.19
Debt/Equity 0.77
P/E ratio 19.85
P/S ratio 1.97
P/B ratio 3.58
Past 5Y EPS Growth 4.32%
This Y EPS Growth 12.17%
Next Y EPS Growth 9.24%
Next 5Y EPS Growth 10.18%
in millions of $

Dividends

Payout Ratio 0.17
Annual Dividend Rate 0.60
Annual Dividend Yield 0.82%
total individual payouts
2028 Powerpack
2027 Powerpack
2026 0.78
0.19
0.19
0.19
0.21
2025 0.70
0.17
0.17
0.17
0.19
2024 0.47
0.15
0.15
0.17
2023 0.60
0.15
0.15
0.15
0.15
2022 0.80
0.22
0.28
0.15
0.15
2021 0.89
0.22
0.22
0.22
0.22
2020 0.89
0.22
0.22
0.22
0.22
2019 0.88
0.21
0.21
0.22
0.22
2018 0.83
0.20
0.20
0.21
0.21
2017 0.78
0.19
0.19
0.20
0.20
2016 0.75
0.18
0.18
0.19
0.19
predictions in italic, special payouts not included in total or ratios

Assets vs Liabilities

2023 2024 2025 Q'26
Cash 104 123 103 134
Receivables 612 599 619 687
Inventory — — — —
Other 92 123 130 220
842 887 906 1,041
2023 2024 2025 Q'26
Payables 170 171 178 222
ST’ Debt 25 139 44 36
Other 212 246 290 —
656 841 836 873
in millions of $

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%

Revenue

Mar Jun Sep Dec Year
’26 1,587 1,597 — — —
’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
in millions of $ · fiscal quarters ending in the months shown

Operating Cash Flow

Mar Jun Sep Dec Year
’26 313 283 — — —
’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
in millions of $ · fiscal quarters ending in the months shown

Free Cash Flow

Mar Jun Sep Dec Year
’26 151 62 — — —
’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
in millions of $ · fiscal quarters ending in the months shown

EPS

Mar Jun Sep Dec Year
’26 1.93 1.54 — — —
’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

Target Price Range

Analyst price targets

Recommendation Rating

1.2
1Buy 2 3Hold 4 5Sell
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
24.07 30.42 39.12 45.14 38.19 44.80 42.19 51.15 65.99 87.85

Analyst estimates 2026–2028

Powerpack
Low Price
34.51 40.10 65.60 58.03 69.30 71.34 59.91 72.06 104.55 127.99
High Price
27,968 29,370 30,060 31,570 43,000 43,400 35,000 38,000 40,000 42,000
Employees
0 0 0 0 0 0 0 0 0 0
Revenue/Emp
3,643 3,914 4,277 4,605 3,566 4,015 4,349 4,801 5,373 5,935
Revenue
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin
482 496 493 562 353 505 451 607 750 953
EBT
13.23% 12.68% 11.53% 12.21% 9.90% 12.58% 10.37% 12.65% 13.95% 16.06%
EBT Margin
318 350 375 446 369 517 366 463 597 759
Net Income
186 193 204 223 210 227 253 283 309 338
Depreciation
40.88 41.77 43.69 46.99 36.17 40.55 43.84 48.25 53.79 59.06
Revenue/Sh
2.77 2.73 2.98 3.65 2.87 4.15 2.72 3.51 4.53 5.62
Earnings/Sh
7.19 7.03 7.79 6.48 7.15 7.23 7.11 8.55 10.04 11.70
Cash Flow/Sh
(2.01) (2.65) (2.82) (4.12) (4.10) (5.58) (5.99) (5.86) (6.43) (7.33)
Capex/Sh
5.18 4.37 4.97 2.36 3.04 1.65 1.13 2.69 3.61 4.37
Free CF/Sh
10.42 14.89 15.90 17.28 19.98 23.81 18.41 22.67 27.96 32.01
Book Value/Sh
89 94 98 98 99 99 99 100 100 101
Shares
11.95 14.92 16.53 15.10 22.92 12.51 21.94 19.13 20.30 18.85
PE Ratio
0.81 0.98 1.12 1.17 1.82 1.28 1.36 1.39 1.72 1.80
PS Ratio
3.17 2.75 3.09 3.19 3.29 2.18 3.23 2.96 3.30 3.32
PB Ratio
1.61 1.61 1.68 1.80 2.66 2.07 1.98 1.94 2.16 2.20
EV/Sales
12.71 15.22 14.62 37.47 34.40 58.74 93.51 39.02 35.08 31.87
EV/FCF
640 658 762 635 705 716 706 851 1,003 1,176
Op' Cash Flow
(179) (249) (276) (404) (405) (552) (594) (583) (642) (736)
Capex
461 410 486 231 300 164 112 268 360 439
FCF
179 185 (10) 35 231 173 141 185 46 70
Working Cap'
3,016 2,578 2,514 3,063 3,289 3,278 2,767 2,713 2,498 2,491
Total Debt
2,915 2,461 2,386 2,910 3,000 3,166 2,714 2,608 2,375 2,388
Net Debt
929 1,395 1,557 1,693 1,970 2,357 1,826 2,255 2,793 3,218
Sh' Equity
5.33% 5.68% 5.82% 6.37% 4.54% 6.19% 4.34% 6.00% 7.21% 8.31%
ROA
10.55% 10.35% 9.98% 9.30% 6.61% 7.45% 8.68% 9.40% 10.45% 11.74%
ROIC
28.99% 23.33% 19.80% 22.07% 15.52% 19.05% 12.96% 17.25% 18.06% 18.84%
ROE
predictions in italic, sparklines do not include predictions

All 10 years →

Fiscal years to Dec 2025 · latest quarter Jun 2026

Encompass Health Corporation peers in Medical Care Facilities

All 55 Medical Care Facilities stocks →

Encompass Health Corporation (EHC) key facts

  • Encompass Health Corporation (EHC) is a Medical Care Facilities company in the Healthcare sector, listed on the New York Stock Exchange.
  • Encompass Health Corporation’s revenue for fiscal 2025 (year ended December 2025) was $5.9 billion, up 10.5% from fiscal 2024.
  • Net income was $759.1 million, or $5.62 per share (basic), a net margin of 9.54%.
  • As of September 25, 2026, EHC traded at $123.47, a market capitalization of $12.0 billion.
  • At that price the stock trades at 19.9× trailing-twelve-month earnings and 2.0× sales.
  • Encompass Health Corporation pays an annual dividend of $0.60 per share, a yield of 0.82%, with a payout ratio of 16.9%.
  • Return on equity was 18.8% and debt-to-equity 0.77.

Source: company filings (standardised) and stockrow calculations.

Encompass Health Corporation (EHC) Latest News

News by impact score

Fine-tune

25 Sep

4

Encompass Health plans two Texas capacity projects to expand its Houston inpatient rehabilitation footprint. A 24-bed small-format hospital in Conroe will operate as a satellite of The Woodlands facility, opening in late 2027. A 60-bed replacement hospital will be built on the Woodlands campus, opening in 2029, with construction designed to keep the existing hospital running. Small-format hospitals leverage a parent’s management, referrals and contracts to grow reach with a lighter footprint. This expansion is part of a broader capacity buildout: through mid-2026, EHC opened three hospitals (139 beds) and added 54 beds; it expects eight new hospitals (389 beds) in 2026 plus 150–200 beds at existing sites. 2026 capex is $920–$995 million, including $695–$755 million for growth and replacement, weighing on near-term free cash flow but boosting volumes and revenue over time. Significant expansion and capex imply meaningful long-term growth potential, with near-term cash-flow pressures but potential for higher volumes and revenue.

24 Sep

4

Encompass Health Corp. plans to expand inpatient rehabilitation capacity in the Houston area with two Montgomery County projects: its first small-format 24-bed hospital in Conroe, operating as a satellite to Encompass Health Rehabilitation Hospital of The Woodlands and expected to open in late 2027; and a 60-bed replacement hospital on the Woodlands campus designed with all-private rooms and enhanced recovery amenities, expected to open in 2029 while the existing hospital continues serving patients during construction. The moves broaden access to specialized rehab care for stroke, brain and spinal injuries, amputations and complex orthopedic conditions and deepen Encompass Health's footprint in growing markets by leveraging existing resources and expertise across the system. Launches a new small-format hospital and a large replacement facility in a growth market, signaling meaningful expansion of capacity and long-term growth potential.

3

Encompass Health Corporation (EHC) has been upgraded to Zacks Rank #2 (Buy) due to a rising earnings outlook, with the upgrade anchored in earnings estimate revisions—the core driver of Zacks ratings. The company is projected to earn $6.08 per share for the 2026 fiscal year, unchanged year over year, while the Zacks Consensus Estimate has risen about 2% over the last three months. The Zacks Rank system emphasizes that revisions to earnings estimates correlate with near-term stock moves, and top-ranked stocks have historically delivered strong returns. The upgrade places Encompass Health in the top 20% of Zacks-covered stocks by revisions, signaling potential upside as investors price in an improving earnings trajectory. The article also notes ongoing business improvements at Encompass Health and underscores the broader impact of earnings revisions on stock prices. Rising earnings estimates and a Buy upgrade imply potential near-term price appreciation.

7 Sep

4

Encompass Health raised its full-year guidance for revenue and adjusted EBITDA after reporting stronger patient volumes and margin expansion in its inpatient rehabilitation hospitals. Raised annual guidance directly signals higher expected revenue and earnings that can lift valuation and investor sentiment.

25 Aug

4

Encompass Health Corporation expands capacity to fuel multi-year growth runway. Capacity expansion represents major strategic move supporting long-term growth trajectory.

14 Aug

3

Encompass Health’s Q2 earnings call featured five analyst questions on operational performance, growth initiatives, reimbursement trends, labor costs, and forward guidance for the healthcare services provider. Earnings call questions surface analyst concerns on core metrics and outlook that can moderately shape near-term investor sentiment without altering company fundamentals.

12 Aug

4 transcript

Encompass Health (EHC) released its Q2 2026 earnings call transcript covering financial results, operational updates, and forward outlook. Earnings call transcript delivers key performance metrics and guidance that directly shape investor views and stock trajectory.

10 Aug

3

Encompass Health Corporation experiences higher-acuity growth in Q2, advances expansion plans, and rolls out labor initiatives affecting its outlook. Higher-acuity growth, expansion plans and labor initiatives indicate moderately noticeable influence on Encompass Health's financial performance and positioning.

8 Aug

4

Encompass Health Corporation beat earnings estimates and raised its 2026 guidance, prompting questions over whether the stock is undervalued. Earnings beat combined with higher 2026 guidance points to improved financial outlook and potential re-rating of the stock.

3

Encompass Health Q2 earnings call highlighted financial results, operational updates, and strategic outlook for the company. Q2 earnings highlights typically deliver moderate effects on near-term valuation and operational views.

7 Aug

4

Encompass Health beat Q2 earnings estimates and raised its 2026 outlook. Earnings beat plus raised 2026 guidance signals stronger financial results that typically drive notable stock gains and investor sentiment shifts.

6 Aug

3

Encompass Health Corporation held its Q2 2026 earnings call covering quarterly results, operational performance, and forward guidance. Standard quarterly earnings updates typically deliver moderate influence on near-term stock sentiment without fundamentally shifting long-term trajectory.

5 Aug

3

Encompass Health Corporation Q2 earnings are compared to analyst estimates across key financial metrics including revenue and EPS. Q2 results versus estimates can shift near-term investor sentiment on financial performance.

3

Encompass Health Corporation exceeded Q2 CY2026 expectations, causing its stock price to surge. Earnings beats drive short-term stock gains and reflect solid operations but rarely reshape long-term company trajectory.

3

Encompass Health Corporation released second quarter 2026 financial results. Quarterly earnings provide financial metrics that may shift near-term investor views without fundamentally redefining long-term strategy.

31 Jul

3

Encompass Health Corporation (EHC) ranks among Wall Street's favored stocks for monitoring, while two unspecified stocks receive sell recommendations due to weaker outlooks. Analyst stock picks can shift near-term investor sentiment and trading volume for EHC without altering fundamentals.

7 Jul

3

Encompass Health Corporation advances its Branford Rehab Plan to drive specialized facility growth and expand rehabilitation services. Branford Rehab Plan targets facility expansion that can moderately improve operational reach and positioning.

29 Jun

4

Encompass Health Corporation evaluates whether its expansion strategy can fuel the next phase of company growth. Expansion strategy represents major strategic move likely to significantly alter company trajectory and investor sentiment.

10 Jun

3

Encompass Health Corporation opens a new 40-bed rehabilitation hospital in Georgia, expanding its state presence and inpatient rehab capacity. Single-facility addition supports modest capacity growth but does not shift overall financial trajectory or competitive position.

25 May

4

Encompass Health raises 2026 outlook, prompting analysis on BTSG stock purchase decision. Raised 2026 outlook signals stronger financial prospects likely to shift investor sentiment and company trajectory.

20 May

3

Encompass Health evaluates higher-coupon debt to fund hospital expansion plans while managing increased interest costs against growth targets. Debt financing choices may raise Encompass Health's capital costs and shape near-term hospital growth execution.

19 May

3

Encompass Health Corporation advances expansion plans that lead analysts to advise holding the stock for now amid uncertain market effects. Expansion strategy may affect financial performance and positioning but overall trajectory impact remains limited.

14 May

3

Encompass Health Corporation priced $500 million of senior notes and initiated redemption of $400 million of its 2028 notes. Debt refinancing adjusts capital structure and financial obligations but does not transform core operations or competitive position.

3

Encompass Health Corporation priced $500 million of senior notes due 2034 in a private offering. The $500 million senior notes issuance provides capital for operations and growth but increases debt obligations, moderately affecting financial performance.

3

Encompass Health Corporation announced a private offering of senior notes. Private offering of senior notes impacts debt financing and financial performance without fundamentally altering long-term trajectory.

12 May

3

Encompass Health Corporation plans to expand its Idaho presence by opening a new 50-bed inpatient rehabilitation facility. New 50-bed facility in Idaho moderately boosts regional capacity and potential revenue without transforming overall operations.

8 May

4

Encompass Health Corporation acquired 7 acres in Haslet, Texas, to develop a new 60-bed inpatient rehabilitation hospital, expanding its network amid growing demand for rehab services. Land acquisition for a new hospital enables major capacity expansion, driving future revenue growth and strengthening competitive positioning.

6 May

4

Encompass Health Corporation (EHC) stock declined after Q1 earnings missed estimates and revenues fell year-over-year. Q1 earnings miss and year-over-year revenue decline indicate weakening financial performance, likely eroding investor confidence and pressuring future market trajectory.

4

Encompass Health Corporation's Q1 EPS beat estimates, revenues rose on strong discharge volumes. Q1 earnings beat and revenue growth from solid discharges boost financial performance and investor sentiment significantly.

4

Encompass Health Corporation beat Q1 earnings expectations, announced share buybacks, and revealed Tennessee expansion plans, potentially eliciting positive investor responses amid strong performance metrics. Earnings beat, buybacks, and regional expansion represent major financial strength signals and growth initiatives likely to enhance stock trajectory and sentiment.

stockrow.com/EHC · Data as of Jun 30, 2026 · For information only; not investment advice. · © 2026 stockrow.com