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.
It is a $12.2B healthcare company. Revenue grew 9.5% over the last year, it keeps 10¢ of every dollar of sales as profit, and its net debt equals ~5.9 years of free cash flow. It trades at 19.6× earnings — around the middle of its own history.
- Website
- encompasshealth.com
- Location
- Birmingham, AL
- Employees
- 29 944
- Sector
- Healthcare
- Founded
- 1984
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, profitability and quality; Growth, Health and Moat lag behind.
Valuation77
- P/E vs own history40th pct · 20/25
- FCF yield3.4% · 12/25
- P/S2.0x · 25/25
- EV/EBITDA10.1x · 20/25
Growth43
- Revenue CAGR3.8% · 6/25
- Net income CAGR8.3% · 12/25
- EPS CAGR ~5Y14.2% · 20/25
- Fwd implied growth4.0% · 5/25
Profitability77
- ROIC11.7% · 12/25
- ROE25.0% · 25/25
- Net margin10.0% · 20/25
- Operating margin17.9% · 20/25
Health35
- Altman Zn/a · 0/25
- Current ratio1.19 · 12/25
- Interest coverage9.0x · 18/25
- Net cash / debtD/A 34% · 5/25
Quality90
- Piotroski F9/9 · 25/25
- Beneish M-2.84 · 25/25
- FCF conversion67% · 15/25
- Margin stabilityσ 2.6% · 25/25
Moat43
- ROIC >12% years2/10 yrs · 0/25
- Median gross margin15.5% · 0/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 6.1% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$566M net income
- 2022MilestoneThe company operated a home health and hospice business that was spun off as Enhabit in 2022
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$3.71B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 1997AcquisitionThe company's largest acquisition during the 1990s came in February 1997 when HealthSouth announced it would acquire…
- 1996MilestoneIt was later determined that $2.7 billion in fraud had occurred from 1996 to 2003
- 1995AcquisitionIncluding the $1.2 billion acquisition of Surgical Care…
- 1994MilestoneHealthSouth expanded rapidly through acquisitions during the mid-to-late 1990s and changed its name again, dropping…
- 1993AcquisitionThe company made its first large acquisition in late 1993 when it acquired 28 inpatient rehabilitation hospitals and…
- 1989AcquisitionThe company moved its listing to the New York Stock Exchange in 1989 and purchased the 219-bed South Highlands…
- 1985AcquisitionThe company changed its name to HealthSouth Rehabilitation Corporation in 1985 to distinguish itself from other…
- Feb 22, 1984FoundedEncompass Health was incorporated as Amcare, Inc. on February 22, 1984 in Birmingham, Alabama by Richard M
- 1983AcquisitionScrushy developed the idea for the company in 1983 while working at Lifemark Corporation, a publicly traded hospital…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (95.8%)
- Interest covered 9.0× by operating earnings
- Piotroski F-Score 9/9 — fundamentally strong checklist
Watch-outs
- Net debt equals ~5.9 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+9.5% YoY
- Profitable — makes more than it spends$621M TTM
- Profit growing — earnings are higher than last year+27.1% YoY
- Generates cash — cash left after running and investing$413M TTM
- Debt under control — could handle its obligations~5.9y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$12.2B market cap
- Not printing shares — share count not ballooning — you keep your slice+2.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 30/100
- Pays a dividend — returns cash to shareholdersyield 0.62%
- Valuation not extreme — price not wildly above earningsP/E 19.6
Peer comparisonEncompass Health Corporation vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| EHC this company | $12.2B | 19.6 | +9.5% | 10.0% | Strained |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: EHC vs LLY · EHC vs JNJ · EHC vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/EHC
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of EHC on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $123.33 · market cap $12.2B.