Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. More Details
Adequate balance sheet with questionable track record.
Share Price & News
How has Encompass Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EHC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EHC's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: EHC underperformed the US Healthcare industry which returned 43.4% over the past year.
Return vs Market: EHC underperformed the US Market which returned 52.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Encompass Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StHere's Why We Think Encompass Health Corporation's (NYSE:EHC) CEO Compensation Looks Fair for the time being
1 week ago | Simply Wall StIs Encompass Health Corporation's (NYSE:EHC) 19% ROE Strong Compared To Its Industry?
4 weeks ago | Simply Wall StIs It Time To Consider Buying Encompass Health Corporation (NYSE:EHC)?
Is Encompass Health undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EHC ($85.41) is trading above our estimate of fair value ($84.69)
Significantly Below Fair Value: EHC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EHC is poor value based on its PE Ratio (27.8x) compared to the US Healthcare industry average (23.2x).
PE vs Market: EHC is poor value based on its PE Ratio (27.8x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: EHC is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: EHC is overvalued based on its PB Ratio (5.1x) compared to the US Healthcare industry average (3.7x).
How is Encompass Health forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EHC's forecast earnings growth (11.9% per year) is above the savings rate (2%).
Earnings vs Market: EHC's earnings (11.9% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: EHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: EHC's revenue (7.8% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: EHC's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EHC's Return on Equity is forecast to be low in 3 years time (18.1%).
How has Encompass Health performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EHC has high quality earnings.
Growing Profit Margin: EHC's current net profit margins (6.5%) are lower than last year (7.3%).
Past Earnings Growth Analysis
Earnings Trend: EHC's earnings have grown by 6.6% per year over the past 5 years.
Accelerating Growth: EHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EHC had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Healthcare industry average (39.5%).
Return on Equity
High ROE: EHC's Return on Equity (18.9%) is considered low.
How is Encompass Health's financial position?
Financial Position Analysis
Short Term Liabilities: EHC's short term assets ($1.0B) exceed its short term liabilities ($812.2M).
Long Term Liabilities: EHC's short term assets ($1.0B) do not cover its long term liabilities ($3.7B).
Debt to Equity History and Analysis
Debt Level: EHC's debt to equity ratio (139.5%) is considered high.
Reducing Debt: EHC's debt to equity ratio has reduced from 338.4% to 139.5% over the past 5 years.
Debt Coverage: EHC's debt is well covered by operating cash flow (28.8%).
Interest Coverage: EHC's interest payments on its debt are well covered by EBIT (3.7x coverage).
What is Encompass Health current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EHC's dividend (1.31%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: EHC's dividend (1.31%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, EHC has been paying a dividend for less than 10 years.
Growing Dividend: EHC's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.5%), EHC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Tarr (58 yo)
Mr. Mark J. Tarr serves as President, Chief Executive Officer And Director of Encompass Health Corp. since December 29, 2016. Mr. Tarr serves as the Principal Executive Officer and President at HEALTHSOUTH...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD6.93M) is about average for companies of similar size in the US market ($USD6.47M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: EHC's management team is seasoned and experienced (6.1 years average tenure).
Experienced Board: EHC's board of directors are seasoned and experienced ( 11 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EHC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Encompass Health Corporation's company bio, employee growth, exchange listings and data sources
- Name: Encompass Health Corporation
- Ticker: EHC
- Exchange: NYSE
- Founded: 1983
- Industry: Health Care Facilities
- Sector: Healthcare
- Market Cap: US$8.429b
- Shares outstanding: 99.54m
- Website: https://www.encompasshealth.com
Number of Employees
- Encompass Health Corporation
- 9001 Liberty Parkway
- United States
Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates through two segments, Inpatient Rehabilitation, and Home Health...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/06 23:24|
|End of Day Share Price||2021/05/06 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.