Stock AnalizEncompass Health Corp EHC
Hospital/Nursing Management · data as of November 13, 2026
Encompass Health Corp (EHC) is a healthcare company listed in the US with a market value of about $13.8B. In the twelve months to September 30, 2026 it had revenue of $6.3B and net income of $644M, a net margin of 10.2%.
Its overall Stock Analiz score is 3.6 out of 5 (good). The strongest part is track record (5/5); the weakest is value (2/5).
Key numbers: a P/E of 22.0, a price to free cash flow of 30.3, 5-year revenue growth of 11% a year, a 5-year average ROIC of 12%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 47% below the current price.
Score: 3.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
Checks not passed
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Strong R&D investment or growth above 20%
- More cash than debt, or low debt to equity
- Debt below 3 years of free cash flow
- Share count down over 3 years (buybacks)
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.3B | $5.9B | $5.4B | $4.8B | $4.3B | $4.0B | $3.6B | $4.6B | $4.3B | $3.9B | $3.6B |
| Net income | $644M | $566M | $456M | $352M | $271M | $412M | $284M | $359M | $292M | $271M | $248M |
| Free cash flow | $457M | $439M | $360M | $268M | $141M | $191M | $312M | $263M | $508M | $432M | $462M |
| EPS (diluted) | $6.40 | $5.54 | $4.46 | $3.47 | $2.70 | $4.11 | $2.85 | $3.61 | $2.93 | $2.84 | $2.59 |
| Net margin | 10.2% | 9.5% | 8.5% | 7.3% | 6.2% | 10.3% | 8.0% | 7.8% | 6.8% | 6.9% | 6.8% |
| ROIC | — | 16.3% | 14.5% | 12.5% | 9.8% | 8.2% | 8.7% | 10.3% | 11.1% | 10.9% | 10.3% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 12 analysts is $156.08, 11% above the current price; targets range from $142.00 to $177.00; the consensus rating is “Strong buy”; expected EPS is $6.28 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Encompass Health’s P/E ratio?
About 22.0, based on the last twelve months of diluted earnings per share (forward P/E about 20.9).
Is Encompass Health stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 47% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Encompass Health pay a dividend?
Yes. The dividend yield is about 0.59%, and it has paid dividends for 10 years in our data.
Is Encompass Health a good stock to buy?
We do not give buy or sell advice. Encompass Health scores 3.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.