Stock Analysis
Encompass Health Corporation Common StockEHC
P/E 20.31×· 5Y range 13.93–25.22×· 46th percentile of history
Sector: Healthcare · Industry: Services-Hospitals
AnalystsStrong Buy18 analystsP/E 20.3× sits at the 46th percentile of its 5.062286105407256-year history.
Cash covers 4% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality90
- Profitability72
Risks
- Growth42
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Piotroski F-Score 9/9 — high earnings quality
- ✓ROE 17.9% — efficient capital deployment
What's happening with EHC
Profile
Strong earnings quality; growth and moat lag behind.
How is each axis scored?
- Valuation64/100 · Moderate
- P/E vs own history (46th pct)12/25
- FCF yield (3.3%)12/25
- P/S (2.0x)20/25
- EV/EBIT (14.4x)20/25
- Growth42/100 · Weak
- Revenue CAGR (3.8%)6/25
- Net income CAGR (8.3%)12/25
- EPS CAGR 5Y (7.7%)12/25
- Fwd implied growth (7.8%)12/25
- Profitability72/100 · Moderate
- ROIC (13.6%)12/25
- ROE (17.9%)20/25
- Net margin (10.0%)20/25
- Operating margin (17.2%)20/25
- Financial Health53/100 · Moderate
- Altman Z (2.94)18/25
- Current ratio (1.19)12/25
- Interest coverage (5.1x)18/25
- Net cash / debt (D/A 37%)5/25
- Quality90/100 · Strong
- Piotroski F (9/9)25/25
- Beneish M (-2.86)25/25
- FCF conversion (67%)15/25
- Margin stability (σ 2.6%)25/25
- Moat43/100 · Weak
- ROIC >12% years (2/10 yrs)0/25
- Median gross margin (15.5%)0/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 6.1%)18/25
About Encompass Health Corporation Common Stock
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals, which is the company's sole segment. Show more
Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. The company's inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.
Headquarters: BIRMINGHAM, AL · Employees: 29,944 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
64BP/E (TTM)20.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 13.9x–25.2x · 46th pct
P/FCF30.6xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
FCF Yield3.3%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.4%–7.0% · 46th pct · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
P/S (TTM)2.03xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 0.9x–2.3x · 90th pct
EV/EBIT14.4xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 11.9x–20.7x · 18th pct
EV/Sales2.4xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E18.8xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio3.64xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.88B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.59%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio12.1%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Elevated investment: Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
Profitability
72B+ROIC13.6%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE17.9%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA8.6%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin10.0%A
Grade A: HighNet Income / Revenue
Operating Margin17.2%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin18.0%D
Grade D: LowGross Profit / Revenue
FCF Margin6.7%D
Grade D: LowFCF / Revenue · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
True FCF Margin5.7%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
Growth
42D+Revenue CAGR3.8%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR8.3%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)7.7%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth7.8%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-1.5%B
Grade B: FlatShare count change over 5Y
SBC / Net Income9.3%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.9%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
53CAltman Z-Score2.94C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.19xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.00xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage5.1xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment6.6yC
Grade C: AverageYears to repay net debt via FCF · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
Net Debt/EBIT2.6xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity0.82xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.04xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score9/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.86A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion66.6%C
Grade C: AverageFCF / Net Income · Elevated investment — CapEx = 66% of operating cash flow, weighing on reported FCF
Margin Stability2.6%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue12.9%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.86xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Darby John Patrick Filed | Darby John Patrick | Option exercise | -4858 | |
Darby John Patrick Filed | Darby John Patrick | SellOpen market sale | -4858 | |
Darby John Patrick Filed | Darby John Patrick | Option exercise | +4.9K | |
Price Andrew L Filed | Price Andrew L | SellOpen market sale | -5211 | |
Darby John Patrick Filed | Darby John Patrick | SellOpen market sale | -8906 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Tarr Mark J Filed | Tarr Mark J | SellOpen market sale | -1579 | |
Tarr Mark J Filed | Tarr Mark J | SellOpen market sale | -171569 | |
COLTHARP DOUGLAS E Filed | COLTHARP DOUGLAS E | SellOpen market sale | -18869 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
43D+ROIC >12% Years2/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)15.5%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor6.1%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$6.29
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.61
Cash & short-term investments per share (Finnhub)
Book Value / Share$26.19
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$2.84B
Total debt obligations (short + long term)
Cash & Equiv.$107.70M
Cash and short-term investments
Net Debt$2.73B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$3.46B
Shareholders' equity (book value)
Asset / Liability1.87xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$12.61B
Current Market Capitalization
Beta0.86B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Encompass Health Corporation Common Stock (EHC)
Encompass Health Corporation Common Stock meets 9 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 2.94 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out.
- Beneish M-Score of -2.86 suggests a low likelihood of earnings manipulation.
- Takes ~6.6 years to repay net debt from free cash flow.
See how EHC ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all EHC moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 6 | Regular | 124.16 | +2.64% | 2.72 |
| Oct 6 | After-hours | 124.69 | +3.08% | 3.16 |
| Oct 5 | Regular | 122.26 | +2.05% | 2.22 |
| Oct 2 | After-hours | 113.08 | -5.02% | -5.30 |
| Sep 30 | Regular | 121.62 | -1.57% | -2.05 |
Frequently Asked Questions about EHC
What is the current Encompass Health Corporation Common Stock (EHC) stock price?
EHC is trading at $127.87 at the last market close, up 0.08% on the session. PreMarketPrice tracks EHC pre-market, intraday and after-hours prices.
Is EHC stock a buy right now?
PreMarketPrice's quantitative model rates Encompass Health Corporation Common Stock's financial health at 53/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is EHC stock overvalued?
Encompass Health Corporation Common Stock trades at a trailing P/E of 20.3 and our valuation score rates it 64/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Encompass Health Corporation Common Stock report earnings?
No confirmed earnings date is currently scheduled for EHC. The Earnings section lists recent reports and updates as dates are announced.
What sector does Encompass Health Corporation Common Stock operate in?
Encompass Health Corporation Common Stock operates in the Healthcare sector, within the Services-Hospitals industry. The Related Stocks section lists sector peers for comparison.
What does Encompass Health Corporation Common Stock do?
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals, which is the company's sole segment.
About Encompass Health Corporation Common Stock (EHC) Stock
Encompass Health Corporation Common Stock (EHC) is a US-listed stock operating in the Healthcare sector, specifically the Services-Hospitals industry. As of the latest update, Encompass Health Corporation Common Stock is trading at $127.87, up 0.08% on the day with a market capitalization of $12.6 billion. The financial health score for EHC is 53/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for EHC stock.
EHC Stock Analysis & Key Metrics
On PreMarketPrice, you can track Encompass Health Corporation Common Stock (EHC) across multiple dimensions:
- Pre-market price & movement: Real-time EHC stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for EHC with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Encompass Health Corporation Common Stock across multiple reporting periods.
- Financial health score: A composite score of 53/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for EHC.
- Sector peers: Compare EHC against 4 other healthcare stocks on key financial metrics.
Is EHC a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Encompass Health Corporation Common Stock (EHC) as an investment. The financial health score of 53/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Encompass Health Corporation Common Stock (EHC) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.