Encompass Health Corporation EHC
- Market cap
- $12.0B
- P/E
- 19.9×
Follow EHC
Target Price Range
Analyst price targets
Free account| 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
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| 34.51 | 40.10 | 65.60 | 58.03 | 69.30 | 71.34 | 59.91 | 72.06 | 104.55 | 127.99 |
High Price
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| 27,968 | 29,370 | 30,060 | 31,570 | 43,000 | 43,400 | 35,000 | 38,000 | 40,000 | 42,000 |
Employees
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| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Revenue/Emp
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| 3,643 | 3,914 | 4,277 | 4,605 | 3,566 | 4,015 | 4,349 | 4,801 | 5,373 | 5,935 |
Revenue
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| 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin
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| 482 | 496 | 493 | 562 | 353 | 505 | 451 | 607 | 750 | 953 |
EBT
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| 13.23% | 12.68% | 11.53% | 12.21% | 9.90% | 12.58% | 10.37% | 12.65% | 13.95% | 16.06% |
EBT Margin
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| 318 | 350 | 375 | 446 | 369 | 517 | 366 | 463 | 597 | 759 |
Net Income
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| 186 | 193 | 204 | 223 | 210 | 227 | 253 | 283 | 309 | 338 |
Depreciation
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| 40.88 | 41.77 | 43.69 | 46.99 | 36.17 | 40.55 | 43.84 | 48.25 | 53.79 | 59.06 |
Revenue/Sh
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| 2.77 | 2.73 | 2.98 | 3.65 | 2.87 | 4.15 | 2.72 | 3.51 | 4.53 | 5.62 |
Earnings/Sh
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| 7.19 | 7.03 | 7.79 | 6.48 | 7.15 | 7.23 | 7.11 | 8.55 | 10.04 | 11.70 |
Cash Flow/Sh
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| (2.01) | (2.65) | (2.82) | (4.12) | (4.10) | (5.58) | (5.99) | (5.86) | (6.43) | (7.33) |
Capex/Sh
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| 5.18 | 4.37 | 4.97 | 2.36 | 3.04 | 1.65 | 1.13 | 2.69 | 3.61 | 4.37 |
Free CF/Sh
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| 10.42 | 14.89 | 15.90 | 17.28 | 19.98 | 23.81 | 18.41 | 22.67 | 27.96 | 32.01 |
Book Value/Sh
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| 89 | 94 | 98 | 98 | 99 | 99 | 99 | 100 | 100 | 101 |
Shares
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| 11.95 | 14.92 | 16.53 | 15.10 | 22.92 | 12.51 | 21.94 | 19.13 | 20.30 | 18.85 |
PE Ratio
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| 0.81 | 0.98 | 1.12 | 1.17 | 1.82 | 1.28 | 1.36 | 1.39 | 1.72 | 1.80 |
PS Ratio
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| 3.17 | 2.75 | 3.09 | 3.19 | 3.29 | 2.18 | 3.23 | 2.96 | 3.30 | 3.32 |
PB Ratio
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| 1.61 | 1.61 | 1.68 | 1.80 | 2.66 | 2.07 | 1.98 | 1.94 | 2.16 | 2.20 |
EV/Sales
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| 12.71 | 15.22 | 14.62 | 37.47 | 34.40 | 58.74 | 93.51 | 39.02 | 35.08 | 31.87 |
EV/FCF
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| 640 | 658 | 762 | 635 | 705 | 716 | 706 | 851 | 1,003 | 1,176 |
Op' Cash Flow
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| (179) | (249) | (276) | (404) | (405) | (552) | (594) | (583) | (642) | (736) |
Capex
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| 461 | 410 | 486 | 231 | 300 | 164 | 112 | 268 | 360 | 439 |
FCF
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| 179 | 185 | (10) | 35 | 231 | 173 | 141 | 185 | 46 | 70 |
Working Cap'
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| 3,016 | 2,578 | 2,514 | 3,063 | 3,289 | 3,278 | 2,767 | 2,713 | 2,498 | 2,491 |
Total Debt
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| 2,915 | 2,461 | 2,386 | 2,910 | 3,000 | 3,166 | 2,714 | 2,608 | 2,375 | 2,388 |
Net Debt
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| 929 | 1,395 | 1,557 | 1,693 | 1,970 | 2,357 | 1,826 | 2,255 | 2,793 | 3,218 |
Sh' Equity
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| 5.33% | 5.68% | 5.82% | 6.37% | 4.54% | 6.19% | 4.34% | 6.00% | 7.21% | 8.31% |
ROA
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| 10.55% | 10.35% | 9.98% | 9.30% | 6.61% | 7.45% | 8.68% | 9.40% | 10.45% | 11.74% |
ROIC
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| 28.99% | 23.33% | 19.80% | 22.07% | 15.52% | 19.05% | 12.96% | 17.25% | 18.06% | 18.84% |
ROE
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Encompass Health Corporation peers in Medical Care Facilities
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| FMS Fresenius Medical Care AG & Co. KGaA | $11.9B | 11.8× | Compare |
| DVA DaVita Inc. | $11.2B | 14.3× | Compare |
| UHS Universal Health Services, Inc. | $10.5B | 7.2× | Compare |
| ENSG The Ensign Group, Inc. | $10.1B | 26.7× | Compare |
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| THC Tenet Healthcare Corporation | $20.1B | 9.9× | Compare |
| PACS PACS Group, Inc. | $6.6B | 24.3× | Compare |
| CHE Chemed Corporation | $6.5B | 25.7× | Compare |
| LFST LifeStance Health Group, Inc. | $4.5B | 89.0× | Compare |
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.
Encompass Health Corporation (EHC) Latest News
25 Sep
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
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.
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
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
Encompass Health Corporation expands capacity to fuel multi-year growth runway. Capacity expansion represents major strategic move supporting long-term growth trajectory.
14 Aug
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
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
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
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.
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
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
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
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.
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.
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
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
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
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
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
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
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
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
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.
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.
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
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
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
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.
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.
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.