Update shared on05 Sep 2025
With both Net Profit Margin and Consensus Revenue Growth forecasts holding steady, analysts have kept their price target for Encompass Health unchanged at $135.75.
What's in the News
- The New York Times reports that Encompass Health, a dominant for-profit rehab hospital operator, has had rare but serious incidents of patient harm and performs below average on certain Medicare safety measures, including high rates of unplanned readmissions, though it generally excels in helping patients return and stay home; federal enforcement and transparency are deemed limited (NY Times, 2025-07-15).
- Encompass Health is continuing aggressive expansion, announcing new freestanding inpatient rehabilitation hospitals in Haslet, Texas (50 beds, opening 2027), Cleveland, Tennessee (40 beds, opening 2026), North Las Vegas, Nevada (50 beds, opening by 2028), and opening a Daytona Beach, Florida facility (50 beds, opened 2025) (Key Developments, 2025-06-18 to 2025-08-07).
- The company announced a joint venture with BSA Health System to operate a 50-bed inpatient rehabilitation hospital in Amarillo, Texas, with the facility expected to open in late 2025 (Key Developments, 2025-08-15).
- Encompass Health completed a stock buyback tranche, repurchasing 243,189 shares for $25.94 million from April to August 2025, bringing total repurchases to 7,051,583 shares (7.61%) for $333.81 million under its buyback program (Key Developments, 2025-08-04).
- Management raised 2025 earnings guidance, now forecasting net operating revenue of $5.88 billion to $5.98 billion (up from $5.85-$5.925 billion), and approved a $0.02 per share increase in the quarterly dividend to $0.19, payable October 2025 (Key Developments, 2025-07-24 & 2025-08-04).
Valuation Changes
Summary of Valuation Changes for Encompass Health
- The Consensus Analyst Price Target remained effectively unchanged, at $135.75.
- The Net Profit Margin for Encompass Health remained effectively unchanged, at 9.92%.
- The Consensus Revenue Growth forecasts for Encompass Health remained effectively unchanged, at 8.1% per annum.
Disclaimer
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