EHC Healthcare

Encompass Health Corporation

$134.79-1.75%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Healthcare
Industry: Medical Care Facilities
Country: United States
Market cap: 13.3B USD
Enterprise value: 15.1B USD
Full-time employees: 29,699

Overall health

Strength: more profitable than most peersmore profitable than peers
Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.19 vs a peer median of 2.59) and more debt relative to equity (1.01× vs a peer median of 0.22×)higher risk: less liquidity (current ratio 1.19 vs peers 2.59) and more debt vs equity (1.01× vs peers 0.22×)
About average: growth

Ranks #401 of 1,157 healthcare companies (top 35%)

See how it ranks against its peers

Worth knowing

Stock pay is large next to buybacks. Stock-based pay expense $155M vs $189M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years Encompass Health recorded $155M of stock-based pay expense and spent $189M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years Encompass Health recorded $155M of stock-based pay expense and spent $189M repurchasing shares.
Profits growing faster than sales. Since 2022: revenue +36%, operating profit +73%.
Since 2022, Encompass Health's revenue grew 36% while operating profit grew 73%: each extra dollar of sales is adding more profit.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $3.6B in 2020 to $5.9B in 2025.
Encompass Health's fiscal-year revenue rose in each of the five years to 2025, from $3.6B to $5.9B.

StockQuotient Score

59/ 100

Oct 5 60 → Nov 4 59 (-1)

Valuation

Is the price right?

73/100

Moderate▼ 3 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 76 → 73

Share price +10.9%-2
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ EBITDA yield
▲ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.7%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 2.16Sector median: 0.0148 · MAD: 0.0148

EBITDA yield8.7%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score 1.16Sector median: 0.0401 · MAD: 0.0401

Free cash flow yield3.1%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield19.5%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3716 · MAD: 0.2313

Growth

Is it growing?

58/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 2.3%

Why

Helped by:

▲ EPS growth
▲ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth21.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.39Sector median: 0.0976 · MAD: 0.2991

3-year revenue growth10.7%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.58Sector median: 0.0584 · MAD: 0.0840

Revenue growth9.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.35Sector median: 0.0609 · MAD: 0.0974

Profitability

Does it earn well?

84/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ ROIC
▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin17.7%

Yahoo Finance fallback · SEC operating income not reported in standard form · fiscal year to Dec 2025Reported value33% base weight · Z-score 0.88Sector median: 0.0706 · MAD: 0.1217

Return on assets8.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.24Sector median: 0.0166 · MAD: 0.0537

Return on invested capital16.6%

Yahoo Finance fallback · SEC operating income or invested capital unavailable · trailing 12 monthsReported value33% base weight · Z-score 1.18Sector median: 0.0471 · MAD: 0.1004

Other data (not scored)

Gross margin43.9%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.4697 · MAD: 0.2310

Return on equity23.9%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0330 · MAD: 0.1225

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.60

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.08Sector median: 0.6250 · MAD: 0.3380

Current ratio1.19×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.01Sector median: 2.5860 · MAD: 1.3850

Debt / equity1.01×

SEC filings · latest balance sheetReported value33% base weight · Z-score -3.89Sector median: 0.2215 · MAD: 0.2039

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Encompass Health

Is Encompass Health getting weaker?: Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is unchanged at 59/100 since Oct 28, 2026.
How is Encompass Health valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 73/100 against 1,393 healthcare peers. EBITDA yield 8.7% vs a peer median of 4.0% (stronger than 77% of peers).EBITDA yield 8.7% vs peers 4.0% (stronger than 77% of peers).
Is Encompass Health growing?: At about the same pace as its peers. Growth scores 58/100 against 1,393 healthcare peers. Earnings per share growth 21.3% vs a peer median of 9.8% (stronger than 70% of peers).Earnings per share growth 21.3% vs peers 9.8% (stronger than 70% of peers).
How profitable is Encompass Health?: More profitable than most of its peers. Profitability scores 84/100 against 1,393 healthcare peers. Return on assets 8.3% vs a peer median of 1.7% (stronger than 87% of peers).Return on assets 8.3% vs peers 1.7% (stronger than 87% of peers).
How risky is Encompass Health?: Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Current ratio 1.19× vs a peer median of 2.59× (weaker than 85% of peers).Current ratio 1.19× vs peers 2.59× (weaker than 85% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 7, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	6.1B USD	6.2B USD	+2.3%
Net income (12 months)	609.2M USD	621.0M USD	+1.9%
Free cash flow (12 months)	464.4M USD	413.4M USD	−11.0%
Debt	2.6B USD	2.6B USD	+2.3%
Cash	110.5M USD	107.7M USD	−2.5%
Shares outstanding	99.2M	98.7M	−0.6%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Medical Care Facilities · 27 companies

Valuations in Medical Care Facilities are within their usual range since Jun 2017.

39% of months since Jun 2017 were valued lower than now.
28% of companies are in the most expensive fifth of their own price-to-sales history.
Median price-to-sales is −61% vs the whole market, against a usual −56%.

Jun 2017Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	13.9%	12.4%	12.3%	13.6%	15.7%	▲ 2.2 pts
Net margin	10.3%	6.2%	7.3%	8.5%	9.5%	▲ 1.1 pts
Return on assets (ROA)	6.0%	4.8%	5.8%	7.0%	8.0%	▲ 1.0 pts
Return on equity (ROE)	21.6%	20.7%	21.4%	22.0%	23.2%	▲ 1.2 pts
Free cash flow margin	4.8%	3.2%	5.6%	6.7%	7.4%	▲ 0.7 pts
Current ratio	1.23×	1.25×	1.28×	1.05×	1.08×	▲ 2.7%
Debt to equity	1.72×	2.11×	1.65×	1.21×	1.02×	▼ 15%
Interest coverage	3.41×	3.07×	4.12×	5.31×	7.58×	▲ 43%

EHC price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: more profitable than most peersmore profitable than peers

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.19 vs a peer median of 2.59) and more debt relative to equity (1.01× vs a peer median of 0.22×)higher risk: less liquidity (current ratio 1.19 vs peers 2.59) and more debt vs equity (1.01× vs peers 0.22×)

About average: growth

Ranks #401 of 1,157 healthcare companies (top 35%)

See how it ranks against its peers

Worth knowing

Stock pay is large next to buybacks. Stock-based pay expense $155M vs $189M spent repurchasing shares over the 3 fiscal years to 2025.

Over three fiscal years Encompass Health recorded $155M of stock-based pay expense and spent $189M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years Encompass Health recorded $155M of stock-based pay expense and spent $189M repurchasing shares.

Profits growing faster than sales. Since 2022: revenue +36%, operating profit +73%.

Since 2022, Encompass Health's revenue grew 36% while operating profit grew 73%: each extra dollar of sales is adding more profit.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $3.6B in 2020 to $5.9B in 2025.

Encompass Health's fiscal-year revenue rose in each of the five years to 2025, from $3.6B to $5.9B.

Questions investors ask about Encompass Health

Is Encompass Health getting weaker?

Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is unchanged at 59/100 since Oct 28, 2026.

How is Encompass Health valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 73/100 against 1,393 healthcare peers. EBITDA yield 8.7% vs a peer median of 4.0% (stronger than 77% of peers).EBITDA yield 8.7% vs peers 4.0% (stronger than 77% of peers).

Is Encompass Health growing?

At about the same pace as its peers. Growth scores 58/100 against 1,393 healthcare peers. Earnings per share growth 21.3% vs a peer median of 9.8% (stronger than 70% of peers).Earnings per share growth 21.3% vs peers 9.8% (stronger than 70% of peers).

How profitable is Encompass Health?

More profitable than most of its peers. Profitability scores 84/100 against 1,393 healthcare peers. Return on assets 8.3% vs a peer median of 1.7% (stronger than 87% of peers).Return on assets 8.3% vs peers 1.7% (stronger than 87% of peers).

How risky is Encompass Health?

Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Current ratio 1.19× vs a peer median of 2.59× (weaker than 85% of peers).Current ratio 1.19× vs peers 2.59× (weaker than 85% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

6.1B USD

6.2B USD

+2.3%

Net income (12 months)

609.2M USD

621.0M USD

+1.9%

Free cash flow (12 months)

464.4M USD

413.4M USD

−11.0%

Debt

2.6B USD

2.6B USD

+2.3%

Cash

110.5M USD

107.7M USD

−2.5%

Shares outstanding

99.2M

98.7M

−0.6%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

13.9%

12.4%

12.3%

13.6%

15.7%

▲ 2.2 pts

Net margin

10.3%

6.2%

7.3%

8.5%

9.5%

▲ 1.1 pts

Return on assets (ROA)

6.0%

4.8%

5.8%

7.0%

8.0%

▲ 1.0 pts

Return on equity (ROE)

21.6%

20.7%

21.4%

22.0%

23.2%

▲ 1.2 pts

Free cash flow margin

4.8%

3.2%

5.6%

6.7%

7.4%

▲ 0.7 pts

Current ratio

1.23×

1.25×

1.28×

1.05×

1.08×

▲ 2.7%

Debt to equity

1.72×

2.11×

1.65×

1.21×

1.02×

▼ 15%

Interest coverage

3.41×

3.07×

4.12×

5.31×

7.58×

▲ 43%