Encompass Health (EHC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Encompass Health

NYSE•Healthcare•Medical Care Facilities

$121.79-0.80(-0.01%)Market closed

Market Cap

$12.17B

P/E

14.9x

P/S

2.0x

P/B

4.7x

Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence, and quality of life; medical, nursing, therapy, and ancillary services; and rehabilitative care to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. It offers services through the Medicare program to the federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was incorporated in 1984 and is based in Birmingham, Alabama.

How this company scores

ExcellentMetricSide Score: 81/100

Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability22/25

Growth21/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality23/25

Strengths

Strong marginsHigh ROERising earningsCash-backed earnings

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 14.9x5y range 10.0x – 17.8x

Currently near its 20-quarter median.

P/S · 2.0x5y range 0.9x – 2.2x

Currently near its 20-quarter median.

P/B · 4.7x5y range 2.2x – 5.4x

Price & Volume

Market Cap $12.17B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.21B
Q. Revenue: $1.60B
TTM EBITDA: $1.37B
TTM Op. Income: $1.03B
Q. Op. Income: $261.60M
TTM Net Income: $817.60M
Q. Net Income: $208.00M
EPS: $1.55
Shares Out.: $98.80M

$6.21B in TTM revenue grew 9.5% YoY, reaching $1.60B last quarter. TTM EBITDA of $1.37B and TTM operating income of $1.03B show growth is flowing through to the bottom line. TTM net income of $817.60M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.1%
EBITDA Margin: 22.0%
Op. Margin: 16.4%
Net Margin: 13.0%

Op. margin of 16.4% is up 0.1% YoY — cost efficiency is improving. Net margin at 13.0% and gross margin of 18.1% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 1% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 14.9x
P/S Ratio: 2.0x
P/B Ratio: 4.7x

At 14.9x P/E, the stock trades below typical market levels. P/S of 2.0x and P/B of 4.7x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 16% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.46B
Cash: $107.70M
Long-Term Debt: $2.60B
Book Value: $2.60B
D/E Ratio: 1.0
Debt/EBITDA: 7.4

With $7.46B in assets and $2.60B in long-term debt, D/E is 1.0and book value is $2.60B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $282.60M
TTM Free Cash Flow: $1.21B
FCF Margin: 19.5%
FCF / Net Income: 1.5

TTM FCF of $1.21B on $282.60M in operating cash flow. The FCF / Net Income ratio of 1.5x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.