EHC

Encompass Health Corp

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107.670

+0.54(0.504%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

108.500

Open

107.530

VWAP

107.74

Vol

675.62K

Mkt Cap

10.87B

Low

107.200

Amount

72.79M

EV/EBITDA(TTM)

11.38

Total Shares

100.69M

14.03B

EV/OCF(TTM)

13.29

P/S(TTM)

1.99

Encompass Health Corporation is an owner and operator of inpatient rehabilitation hospitals in the United States. The Company provides compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and treatments to maximize recovery. It operates hospitals in 38 states and Puerto Rico, with concentrations in Florida and Texas. It operates approximately 166 inpatient rehabilitation hospitals. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver comprehensive patient care services. It provides care to patients who suffer from cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures and a variety of debilitating neurological conditions. Its hospitals have settings for treating the debilitating effects of the COVID-19 virus, such as significant muscle weakness, cognitive impairments, shortness of breath with activity and malnutrition.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q4

FY2025Q3

FY2025Q2

1.53B

+9.16%

1.270

+8.51%

1.47B

+9.16%

1.157

+12.35%

1.43B

+9.58%

1.206

+8.65%

Estimates Revision

The market is revising Upward the revenue expectations for Encompass Health Corporation (EHC) for FY2025, with the revenue forecasts being adjusted by 0.27% over the past three months. During the same period, the stock price has changed by -6.63%.

Revenue Estimates for FY2025

Revise Upward

+0.27%

In Past 3 Month

EPS Estimates for FY2025

No Change

0.00%

In Past 3 Month

Stock Price

Go Down

-6.63%

In Past 3 Month

10 Analyst Rating

22.19% Upside

Wall Street analysts forecast EHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EHC is 131.56 USD with a low forecast of 125.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

10 Buy

0 Hold

0 Sell

Strong Buy

22.19% Upside

Current: 107.670

Low

125.00

Averages

131.56

High

140.00

22.19% Upside

Current: 107.670

Low

125.00

Averages

131.56

High

140.00

Mizuho

Outperform

maintain

2025-07-16

Reason

Mizuho

Price Target

2025-07-16

maintain

Outperform

Reason

Mizuho views the selloff yesterday in shares of Encompass Health following the New York Times report questioning the quality of the company's care as overdone. The article "presents a selective one-sided perspective," the analyst tells investors in a research note. Mizuho says the ten patients mentioned in the article represent less than 0.001% of all Encompass patients since 2021. The firm believes the company's earnings viability remains high and reiterates an Outperform rating on the name. It would buy the stock on the weakness.

KeyBanc

Overweight

maintain

$135

2025-07-15

Reason

KeyBanc

Price Target

$135

2025-07-15

maintain

Overweight

Reason

KeyBanc sees a buying opportunity with Encompass Health shares down following a negative New York Times report that focuses on alleged quality deficiencies at its inpatient rehab facilities. The firm does not find the article compelling and believes Encompass' Q2 report is positioned for a beat. The article reached conclusions by selectively analyzing readmissions data at a subset of Encompass' facilities, the analyst tells investors in a research note. KeyBanc believes the company has above-average acuity and keeps an Overweight rating on the shares with a $135 price target. The stock in afternoon trading is down 10% to $107.87.

Barclays

Overweight

maintain

$118 -> $129

2025-04-25

Reason

Barclays

Price Target

$118 -> $129

2025-04-25

maintain

Overweight

Reason

Barclays raised the firm's price target on Encompass Health to $129 from $118 and keeps an Overweight rating on the shares following the Q1 report. The firm continues to view Encompass as one of the most defensive stocks in its coverage that is largely insulated from current policy risk.

KeyBanc

Overweight

maintain

$120 -> $122

2025-04-25

Reason

KeyBanc

Price Target

$120 -> $122

2025-04-25

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Encompass Health to $122 from $120 and keeps an Overweight rating on the shares. The firm says Q1 results look very impressive and continue to support its positive long-term thesis. In KeyBanc's view, the company's consistent performance is underpinned by its successful de novo/JV strategy, growing demand for IRF services, and Encompass Health's structural advantages vs. subscale nonprofit units. Additionally, the firm is optimistic the company will remain insulated from ongoing healthcare policy and macro uncertainty.

BofA

Buy

maintain

$125 -> $128

2025-04-25

Reason

BofA

Price Target

$125 -> $128

2025-04-25

maintain

Buy

Reason

BofA raised the firm's price target on Encompass Health to $128 from $125 and keeps a Buy rating on the shares. With "another beat and guidance raise," the Encompass "story is on track," the analyst tells investors. Given Encompass' historical conservatism, the firm expects guidance will keep moving higher through the year, adds the analsyt, who raised the firm's estimates for the beat.

RBC Capital

Ben Hendrix

Buy

Reiterates

$110

2025-02-11

Reason

RBC Capital

Ben Hendrix

Price Target

$110

2025-02-11

Reiterates

Buy

Reason

See All Ratings

Valuation Metrics

The current forward P/E ratio for Encompass Health Corp (EHC.N) is 20.99, compared to its 5-year average forward P/E of 19.22. For a more detailed relative valuation and DCF analysis to assess Encompass Health Corp 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Fair

5Y Average PE

19.22

Current PE

20.99

Overvalued PE

21.23

Undervalued PE

17.21

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

Fair

5Y Average EV/EBITDA

11.00

Current EV/EBITDA

11.54

Overvalued EV/EBITDA

11.82

Undervalued EV/EBITDA

10.18

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

Overvalued

5Y Average PS

1.45

Current PS

1.80

Overvalued PS

1.67

Undervalued PS

1.23

Financials

Annual

Quarterly

FY2025Q1

YoY :

+10.59%

1.46B

Total Revenue

FY2025Q1

YoY :

+28.67%

267.00M

Operating Profit

FY2025Q1

YoY :

+40.61%

197.00M

Net Income after Tax

FY2025Q1

YoY :

+35.78%

1.48

EPS - Diluted

FY2025Q1

YoY :

+26.07%

126.20M

Free Cash Flow

FY2025Q1

YoY :

+0.08%

90.28

Gross Profit Margin - %

FY2025Q1

YoY :

+39.45%

7.07

FCF Margin - %

FY2025Q1

YoY :

+27.14%

13.54

Net Margin - %

FY2025Q1

YoY :

+15.39%

11.47

ROIC

Trading Trends

Insider

Insiders areSelling! The selling amount has increased 141.44% over the last month.

Sold

0-3

Months

14.9M

USD

3-6

Months

6.7M

USD

6-9

Months

0.0

USD

0-12

Months

1.1M

USD

Bought

0-3

0.0

USD

Months

3-6

0.0

USD

Months

6-9

0.0

USD

Months

0-12

0.0

USD

Months

Hedge Fund

Hedge Funds are Neutral. There are no significant trading trends over the last quarter.

Sold

0-3

Months

0.0

Volume

3-6

Months

275.9K

Volume

6-9

Months

626.4K

Volume

0-12

Months

0.0

Volume

Bought

0-3

0.0

Volume

Months

3-6

0.0

Volume

Months

6-9

50.8K

Volume

Months

0-12

0.0

Volume

Months

Congress Trading

Congress are Neutral. There are no significant trading trends over the last month.

Sold

0-3

Months

0.0

USD

3-6

Months

0.0

USD

6-9

Months

0.0

USD

0-12

Months

0.0

USD

Bought

0-3

0.0

USD

Months

3-6

0.0

USD

Months

6-9

0.0

USD

Months

0-12

0.0

USD

Months

Insider

Insiders areSelling! The selling amount has increased 141.44% over the last month.

Sold

0-3

Months

14.9M

USD

3-6

Months

6.7M

USD

6-9

Months

0.0

USD

0-12

Months

1.1M

USD

Bought

0-3

0.0

USD

Months

3-6

0.0

USD

Months

6-9

0.0

USD

Months

0-12

0.0

USD

Months

EHC News & Events

Events Timeline

2025-07-24 (ET)

2025-07-24

08:52:09

Encompass Health increases dividend 2c to 19c per share

2025-07-18 (ET)

2025-07-18

22:14:01

Encompass to build 40-bed inpatient rehabilitation hospital in Tennessee

2025-07-15 (ET)

2025-07-15

14:58:01

Errors at rehab hospitals go 'unpenalized and undisclosed,' NY Times says

News

8.0

07-24Newsfilter

Encompass Health increases and declares dividend on common stock

7.0

07-23PRnewswire

INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation of Encompass Health Corporation (NYSE: EHC) and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm

7.0

07-23Globenewswire

Bragar Eagel & Squire, P.C Continues Investigations on Behalf of Encompass Health, Quantum, and National Grid and Encourages Investors to Contact the Firm