EHC
Encompass Health Corp
$106.29
▼ 0.2%Updated Today 12:11 PM ET
EHC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 65/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 10.7% over the last 12 months
Market Cap
$10.56B
P/E
17.34x
Forward P/E (est.)
14.02x
ROE
25.4%
Revenue Growth
10.1%
EPS Growth
23.7%
Profit Margin
10.0%
FCF Yield
6.8%
Debt / Equity
1.02x
ROIC
11.0%
Interest Coverage
3.76x
Current Ratio
1.17x
Dividend Yield
0.7%
Implied Growth (rev. DCF)
4.6%
Rating Score
65/100
Encompass Health Corp (EHC) is a large-cap company in the Health Care industry, part of the Health Care sector of the S&P 500, with a market value around $10.56B.
In its latest reported year it generated about $5.94B in revenue and $566.20M in net profit.
Our model rates EHC Favorable (65/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what EHC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. EHC trades near $106.29, around its 50-day average ($103.29) and 200-day average ($108.33). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 63 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. EHC's is $2.96 (~2.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month EHC found buyers near $96.43 (support) and sellers near $107.73 (resistance); its 52-week range is $92.77–$127.99. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
10.3%
Revenue moved from $3.64B in 2016 to $5.94B in 2025, a 5.6% compound annual growth rate. The most recent year grew a steady 10.1% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
95.8%
Operating Margin
17.9%
Net Margin
9.5%
ROE
25.4%
Encompass Health Corp keeps about 10.0% of each sales dollar as net profit, with a 95.8% gross margin and 17.9% operating margin. Return on equity is 25.4% and return on invested capital about 11.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$1.25B
Net Debt
$1.14B
Net Debt / EBITDA
—
Debt / Equity
1.02x
Leverage: debt-to-equity is 1.0x, and operating profit covers interest about 3.8x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.25B of total debt against $110.50M of cash.
Operating CF
$1.18B
Free Cash Flow
$439.20M
FCF Margin
7.4%
In the latest year Encompass Health Corp produced about $1.18B of operating cash flow and $439.20M of free cash flow after capital spending. That is a free-cash-flow yield of about 6.8% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
17.34x
P/S
1.78x
P/B
4.38x
EV / EBITDA
13.49x
EHC trades at 17.3x trailing earnings (about 14.0x on estimated forward earnings), 1.8x sales, and 4.4x book value. Reverse-engineering today's price implies the market expects roughly 4.6% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$106.70
Current price
$106.29
Starting FCF (latest 10-K)
$439.20M
Growth, years 1–5
10.1%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where EHC sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 53 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How EHC stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (198 S&P 500 companies), EHC ranks #10 of 198 by our overall rating. It trades at a discount versus the sector on earnings (17.3x P/E vs. 25.5x median) with a higher return on equity (25.4% vs. 14.5%) and faster revenue growth (10.1% vs. 7.6%).
P/E vs sector
17.3x
median 25.5x
ROE vs sector
25.4%
median 14.5%
Growth vs sector
10.1%
median 7.6%
Sector rank
#10
of 198 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 198 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $106.29 today · expected CAGR -2% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $6.53B | $7.18B | $7.90B | $8.69B | $9.56B |
| Net income | $652.87M | $718.16M | $789.98M | $868.97M | $955.87M |
| EPS | $6.58 | $7.24 | $7.96 | $8.76 | $9.64 |
| Share price (low) | $65.81 | $72.40 | $79.64 | $87.60 | $96.36 |
| Share price (high) | $111.88 | $123.07 | $135.38 | $148.92 | $163.81 |
| CAGR (low–high) | -38% / 5% | -17% / 8% | -9% / 8% | -5% / 9% | -2% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for EHC:
- Revenue is growing 10.1% a year, a sign of real demand.
- Strong return on equity (25.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~6.8%) funds buybacks and dividends.
- Our model's overall read is Favorable (65/100).
The case against EHC:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.0x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Encompass Health Corp is a large-cap health care business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 17.3x earnings, which our model scores Favorable (65/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
EHC — frequently asked questions
Is EHC a good stock to buy?
We don't give buy or sell advice. Our model rates Encompass Health Corp Favorable (65/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is EHC's rating on The Stocks School?
Encompass Health Corp currently scores 65/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does EHC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Encompass Health Corp's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for EHC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this EHC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell EHC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.