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EHC

Strong BuyFull HouseFLAG

Encompass Health Corporation · Healthcare · United States · $11.9B · Avg Vol: $112M/d

91
StockRank
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Q
72
V
52
M
68
P/E (TTM)
20.3x
ROE
25.0%
D/E
0.8x
Dividend %
0.6%
AI CONVICTION THESIS

Encompass Health has quality Q71 and momentum M66 with a buyback on file, but value at V49 is one point below the calibrated floor, so stage one fails. Insider selling is separately adverse.

COMPANY DESCRIPTION

Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States, also providing comprehensive home health and hospice services. The company specializes in integrated post-acute care for patients recovering from complex medical conditions, offering high-quality, specialized rehabilitation programs. Its extensive network and commitment to clinical outcomes solidify its leadership position in the fragmented post-acute care market.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue4.3B4.8B5.4B5.9B10.9%6.2B6.5B7.0B8.5%
EPS2.723.514.535.6227.4%5.996.306.8910.7%
Shares99.8M100.3M100.8M100.0M+0.2%98.7M
Debt3.0B2.9B2.7B2.7B-3.2%2.8B
Equity1.3B1.6B2.1B2.4B23.0%
Op CF705.8M850.8M1.0B1.2B18.5%1.2B
Inv CF-627.0M-602.8M-653.3M-764.6M
Fin CF-145.7M-197.2M-330.6M-431.2M
Loading 1Y...
PRICE (1Y)+11.7%
111115118122126Aug 5Aug 26Sep 16
SMA 50SMA 200

Close
$123.91
RSI (14)
60.6
52W High
$127.50
From 52W High
1.0%

SCORE BREAKDOWN

Quality
72
ROIC
18.4%88.6
ROE
25.0%92.7
GP/Assets
38.4%76.1
Op. Margin
18.1%80.2
FCF/Assets
5.8%73.2
Piotroski
999.1
Int. Cover
9.2x60.9
D/E Ratio
0.82x17.3
Current Ratio
1.19x16.4
Value
52
P/E (TTM)
20.3x59.1
EV/EBITDA
10.7x66.6
P/FCF
28.8x47.8
P/B
4.6x31.2
P/S
1.9x69.7
Div Yield
0.6%19.0
Momentum
68
52W High %
97%96.4
RS 6M
9%71.2
SMA 50/200
1.10x75.6
EPS Rev 4W
+2.2%66.7
EPS Rev 12W
+2.1%71.0
EPS Improve
+11%28.3
Q Growth
8%45.8

FUNDAMENTALS

Market Cap
$11.9B
P/E (Forward)
18.2x
Gross Margin
43.9%

SECTOR PEERS

Closest peers in Healthcare, ranked by industry match, size, and score similarity. Cross-listings of EHC are excluded.

TickerCompanyMkt CapStockRankSignal
EHCEncompass Health Corporation(you)$11.9B91Strong Buy
DVADaVita Inc.$11.5B92Strong Buy
UHSUniversal Health Services, Inc.$10.1B89Strong Buy
CHEChemed Corporation$6.8B89Strong Buy
THCTenet Healthcare Corporation$21.5B98Strong Buy
CONConcentra Group Holdings Parent, Inc.$4.4B93Strong Buy
NHCNational HealthCare Corporation$3.5B92Strong Buy
PACSPACS Group, Inc.$6.8B74Buy
LFSTLifeStance Health Group, Inc.$4.7B80Buy
AVAHAveanna Healthcare Holdings Inc.$2.9B96Strong Buy

Peer medians: ROE -30.2% · P/E 27.1x · Gross margin 58.3%

Encompass Health Corporation (EHC): Stock Score Summary

Encompass Health Corporation (EHC) has a MoatMap StockRank of 91/100 based on Quality (72/100), Value (52/100), and Momentum (68/100) factor scores. The current signal is STRONG BUY. Encompass Health has quality Q71 and momentum M66 with a buyback on file, but value at V49 is one point below the calibrated floor, so stage one fails. Insider selling is separately adverse.

Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States, also providing comprehensive home health and hospice services. The company specializes in integrated post-acute care for patients recovering from complex medical conditions, offering high-quality, specialized rehabilitation programs. Its extensive network and commitment to clinical outcomes solidify its leadership position in the fragmented post-acute care market.

Key Financial Metrics

Price$123.91
Market Cap$11.9B
P/E (TTM)20.33
P/E (Forward)18.24
Price/Book4.63
Return on Equity25.0%
Return on Invested Capital18.4%
Debt/Equity0.82x
Gross Margin43.9%
Operating Margin18.1%
Revenue Growth9.6%
Dividend Yield0.6%
Free Cash Flow$413M

Encompass Health Corporation operates in the Medical Care Facilities industry, part of the Healthcare sector (United States).

Frequently Asked Questions

What is Encompass Health Corporation’s (EHC) StockRank?
MoatMap’s StockRank for Encompass Health Corporation (EHC) is 91/100, with a Strong Buy signal. It is a composite of Quality (72), Value (52), and Momentum (68) factor ranks across MoatMap’s universe of 25,000+ stocks.
Does Encompass Health Corporation have an economic moat?
Encompass Health Corporation (EHC) has a Quality factor score of 72/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Encompass Health Corporation a buy, hold, or sell?
MoatMap’s current signal for Encompass Health Corporation (EHC) is Strong Buy, based on a StockRank of 91/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Encompass Health Corporation in?
Encompass Health Corporation (EHC) operates in the Healthcare sector, specifically the Medical Care Facilities industry (United States).