Update shared on20 Sep 2025
Fair value Increased 1.23%With both future P/E and net profit margin remaining effectively unchanged, Encompass Health’s consensus analyst price target saw only a marginal increase from $135.75 to $137.42.
What's in the News
- The New York Times reports Encompass Health, a leading rehab hospital operator, has had incidents of patient harm and underperforms on some Medicare safety measures, notably with higher unplanned readmissions, though it excels at helping patients return home; regulatory action and disclosure appear limited. (The New York Times, 2025-07-15)
- Encompass Health is expanding its rehabilitation hospital footprint with new or planned facilities in Sumter County (FL), Daytona Beach (FL), Cleveland (TN), Haslet (TX), and via a joint venture in Amarillo (TX), reflecting aggressive growth, particularly in Texas and Florida. (Key Developments, various)
- The company raised its 2025 net operating revenue guidance to $5,880–$5,980 million, above the previous range, indicating confidence in future performance. (Key Developments, 2025-08-04)
- Encompass Health increased its quarterly dividend by $0.02 to $0.19 per share, payable in October 2025, reflecting ongoing shareholder returns. (Key Developments, 2025-07-24)
- The company completed a share repurchase tranche (243,189 shares, $25.94 million) and has bought back 7.61% of its shares (~7.05 million shares, $333.81 million) since 2013. (Key Developments, 2025-08-04)
Valuation Changes
Summary of Valuation Changes for Encompass Health
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $135.75 to $137.42.
- The Future P/E for Encompass Health remained effectively unchanged, moving only marginally from 23.22x to 23.51x.
- The Net Profit Margin for Encompass Health remained effectively unchanged, at 9.92%.
Disclaimer
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