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Encompass Health

NYSE:EHC
Snowflake Description

Acceptable track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EHC
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The last earnings update was 51 days ago. More info.


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EHC Share Price and Events
7 Day Returns
0.3%
NYSE:EHC
-5.3%
US Healthcare
0.2%
US Market
1 Year Returns
5.8%
NYSE:EHC
-5.5%
US Healthcare
6.3%
US Market
EHC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Encompass Health (EHC) 0.3% 2.2% -7.8% 5.8% 60.2% 79.5%
US Healthcare -5.3% -10% -11.9% -5.5% 11.3% 59.5%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • EHC outperformed the Healthcare industry which returned -5.5% over the past year.
Price Volatility
EHC
Industry
5yr Volatility vs Market
Related Companies

EHC Value

 Is Encompass Health undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Encompass Health to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Encompass Health.

NYSE:EHC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EHC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (41.56%))
0.964
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.964 * 5.96%)
8.47%

Discounted Cash Flow Calculation for NYSE:EHC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Encompass Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EHC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.47%)
2019 414.86 Analyst x4 382.45
2020 439.74 Analyst x5 373.73
2021 464.00 Analyst x1 363.54
2022 461.29 Est @ -0.58% 333.19
2023 463.18 Est @ 0.41% 308.42
2024 468.30 Est @ 1.11% 287.47
2025 475.76 Est @ 1.59% 269.24
2026 484.96 Est @ 1.93% 253.01
2027 495.50 Est @ 2.17% 238.32
2028 507.09 Est @ 2.34% 224.84
Present value of next 10 years cash flows $3,034.21
NYSE:EHC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $507.09 × (1 + 2.73%) ÷ (8.47% – 2.73%)
$9,071.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,071.11 ÷ (1 + 8.47%)10
$4,022.09
NYSE:EHC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,034.21 + $4,022.09
$7,056.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,056.30 / 98.74
$71.46
NYSE:EHC Discount to Share Price
Calculation Result
Value per share (USD) From above. $71.46
Current discount Discount to share price of $61.27
= -1 x ($61.27 - $71.46) / $71.46
14.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Encompass Health is available for.
Intrinsic value
14%
Share price is $61.27 vs Future cash flow value of $71.46
Current Discount Checks
For Encompass Health to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Encompass Health's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Encompass Health's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Encompass Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Encompass Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EHC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.97
NYSE:EHC Share Price ** NYSE (2019-04-18) in USD $61.27
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.9x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Encompass Health.

NYSE:EHC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EHC Share Price ÷ EPS (both in USD)

= 61.27 ÷ 2.97

20.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encompass Health is good value based on earnings compared to the US Healthcare industry average.
  • Encompass Health is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Encompass Health's expected growth come at a high price?
Raw Data
NYSE:EHC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
11.4%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:EHC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.66x ÷ 11.4%

1.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encompass Health is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Encompass Health's assets?
Raw Data
NYSE:EHC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $12.91
NYSE:EHC Share Price * NYSE (2019-04-18) in USD $61.27
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:EHC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EHC Share Price ÷ Book Value per Share (both in USD)

= 61.27 ÷ 12.91

4.75x

* Primary Listing of Encompass Health.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Encompass Health is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Encompass Health's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Encompass Health has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EHC Future Performance

 How is Encompass Health expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Encompass Health expected to grow at an attractive rate?
  • Encompass Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Encompass Health's earnings growth is positive but not above the United States of America market average.
  • Encompass Health's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EHC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EHC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 11.4%
NYSE:EHC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 5.5%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EHC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EHC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,065 806 434 3
2020-12-31 4,783 757 386 14
2019-12-31 4,548 733 372 14
NYSE:EHC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,277 762 290
2018-09-30 4,195 734 324
2018-06-30 4,109 711 302
2018-03-31 4,008 693 273
2017-12-31 3,914 658 271
2017-09-30 3,841 642 260
2017-06-30 3,771 645 256
2017-03-31 3,710 646 256
2016-12-31 3,643 640 247
2016-09-30 3,576 616 228
2016-06-30 3,432 602 217
2016-03-31 3,280 552 198

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Encompass Health's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
  • Encompass Health's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EHC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Encompass Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EHC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.15 4.29 4.01 2.00
2020-12-31 3.83 4.06 3.63 9.00
2019-12-31 3.73 3.83 3.56 9.00
NYSE:EHC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.97
2018-09-30 3.31
2018-06-30 3.08
2018-03-31 2.85
2017-12-31 2.89
2017-09-30 2.85
2017-06-30 2.87
2017-03-31 2.88
2016-12-31 2.77
2016-09-30 2.55
2016-06-30 2.41
2016-03-31 2.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Encompass Health is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Encompass Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Encompass Health has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EHC Past Performance

  How has Encompass Health performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Encompass Health's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Encompass Health's year on year earnings growth rate has been positive over the past 5 years.
  • Encompass Health's 1-year earnings growth is less than its 5-year average (7.3% vs 11.4%)
  • Encompass Health's earnings growth has not exceeded the US Healthcare industry average in the past year (7.3% vs 7.3%).
Earnings and Revenue History
Encompass Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Encompass Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EHC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,277.30 290.30 298.20
2018-09-30 4,195.20 324.30 285.40
2018-06-30 4,109.20 301.70 274.20
2018-03-31 4,007.90 273.00 270.50
2017-12-31 3,913.90 270.60 245.20
2017-09-30 3,840.50 260.10 236.10
2017-06-30 3,770.90 255.90 225.70
2017-03-31 3,709.80 255.80 209.00
2016-12-31 3,642.60 246.80 204.70
2016-09-30 3,575.90 228.20 198.10
2016-06-30 3,431.80 216.70 188.70
2016-03-31 3,280.00 198.40 176.10
2015-12-31 3,115.70 181.40 174.90
2015-09-30 2,857.20 172.70 168.10
2015-06-30 2,678.00 171.50 171.40
2015-03-31 2,519.60 204.00 172.50
2014-12-31 2,374.30 207.80 157.10
2014-09-30 2,336.00 144.40 175.10
2014-06-30 2,303.30 148.30 170.20
2014-03-31 2,265.70 228.20 171.30
2013-12-31 2,247.20 228.70 175.60
2013-09-30 2,224.40 293.20 168.40
2013-06-30 2,198.40 280.70 176.70
2013-03-31 2,167.80 161.00 178.90
2012-12-31 2,134.90 153.50 181.20
2012-09-30 2,101.20 163.40 166.50
2012-06-30 2,063.80 138.90 151.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Encompass Health has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Encompass Health used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Encompass Health has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Encompass Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Encompass Health has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EHC Health

 How is Encompass Health's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Encompass Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Encompass Health's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Encompass Health's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Encompass Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Encompass Health Company Filings, last reported 3 months ago.

NYSE:EHC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,818.70 2,514.40 69.20
2018-09-30 1,820.20 2,541.00 56.90
2018-06-30 1,725.20 2,636.50 59.00
2018-03-31 1,639.40 2,577.10 86.40
2017-12-31 1,616.30 2,577.70 54.40
2017-09-30 1,594.50 2,622.40 67.60
2017-06-30 1,539.00 2,663.40 71.10
2017-03-31 1,132.50 2,953.40 61.20
2016-12-31 1,067.00 3,016.40 40.50
2016-09-30 1,023.20 3,010.80 76.40
2016-06-30 969.40 3,086.50 70.30
2016-03-31 920.10 3,116.20 73.20
2015-12-31 900.40 3,171.50 61.60
2015-09-30 904.30 2,824.30 801.60
2015-06-30 863.20 2,125.80 52.90
2015-03-31 818.30 2,272.30 208.30
2014-12-31 797.40 2,111.20 66.70
2014-09-30 698.20 1,649.90 272.30
2014-06-30 661.00 1,475.10 65.80
2014-03-31 588.40 1,503.10 53.10
2013-12-31 575.40 1,517.50 64.50
2013-09-30 798.10 1,319.90 65.00
2013-06-30 749.00 1,330.70 68.70
2013-03-31 579.50 1,377.60 80.10
2012-12-31 752.90 1,253.50 132.80
2012-09-30 698.20 1,321.90 163.20
2012-06-30 635.90 1,219.40 41.10
  • Encompass Health's level of debt (138.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (263.6% vs 138.3% today).
  • Debt is well covered by operating cash flow (30.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
X
Financial health checks
We assess Encompass Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Encompass Health has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EHC Dividends

 What is Encompass Health's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.76%
Current annual income from Encompass Health dividends. Estimated to be 1.81% next year.
If you bought $2,000 of Encompass Health shares you are expected to receive $35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Encompass Health's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Encompass Health's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EHC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EHC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.17 2.00
2020-12-31 1.11 4.00
2019-12-31 1.09 4.00
NYSE:EHC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 1.080 1.782
2018-10-26 1.080 1.594
2018-07-24 1.080 1.392
2018-05-04 1.000 1.506
2018-05-02 1.000 1.595
2018-04-26 1.000 1.647
2017-10-20 1.000 1.921
2017-07-20 1.000 2.238
2017-05-04 0.960 2.046
2017-02-17 0.960 2.232
2016-10-20 0.960 2.359
2016-07-21 0.960 2.350
2016-05-05 0.920 2.295
2016-02-18 0.920 2.530
2015-10-23 0.920 2.664
2015-07-16 0.920 2.201
2015-05-07 0.840 1.870
2015-02-19 0.840 1.893
2014-10-21 0.840 2.073
2014-07-17 0.840 2.182
2014-05-01 0.720 2.034
2014-02-28 0.720 2.118
2013-10-25 0.720 2.146
2013-07-25 0.720 2.143

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Encompass Health has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Encompass Health only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Encompass Health's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Encompass Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Encompass Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Encompass Health has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EHC Management

 What is the CEO of Encompass Health's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Tarr
COMPENSATION $6,388,227
AGE 56
TENURE AS CEO 2.3 years
CEO Bio

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 Colorado Real Estate, LLC, HEALTHSOUTH Kansas Real Estate, LLC, HEALTHSOUTH Sea Pines Holdings, LLC and HEALTHSOUTH Arizona Real Estate, LLC. He served as the Chief Operating Officer and Executive Vice President at Encompass Health Corporation since February 24, 2011 until December 29, 2016. He served as an Executive Vice President of Operations at Encompass Health Corporation from August 01, 2007 to February 24, 2011 and served as its President of Inpatient Division from September 27, 2004 to 2007. He joined Encompass Health Corporation in 1993 and served various management positions including Senior Vice President, where he was responsible for all inpatient operations in Texas, Louisiana, Arkansas, Oklahoma and Kansas from 1997 to 2004, Director of Operations of 80 bed rehabilitation hospital in Nashville, Tennessee from 1994 to 1997, Chief Executive Officer and Administrator of Encompass Health Corp's 70 bed rehabilitation hospital in Vero Beach from 1992 to 1994. He earned his bachelor's degree from Ball State University and his master's in business administration from the Goizueta Business School at Emory University.

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year.
  • Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Encompass Health management team in years:

5.7
Average Tenure
53
Average Age
  • The average tenure for the Encompass Health management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Tarr

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
56
TENURE
2.3 yrs

Doug Coltharp

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
56
TENURE
8.9 yrs

John Darby

TITLE
Executive VP
COMPENSATION
$2M
AGE
53
TENURE
3.2 yrs

Barb Jacobsmeyer

TITLE
Executive VP & President Inpatient Hospitals
COMPENSATION
$2M
AGE
52
TENURE
1.2 yrs

Andy Price

TITLE
Senior VP & Chief Accounting Officer
AGE
51
TENURE
9.5 yrs

Rusty Yeager

TITLE
Chief Information Officer & Senior VP
TENURE
7.8 yrs

Crissy Carlisle

TITLE
Chief Investor Relations Officer
TENURE
3.6 yrs

Dawn Rock

TITLE
Chief Compliance Officer
TENURE
3.8 yrs

Frank Brown

TITLE
President of Southwest Region
TENURE
7.6 yrs

Jerry Gray

TITLE
President of West Region
TENURE
7.6 yrs
Board of Directors Tenure

Average tenure and age of the Encompass Health board of directors in years:

12.7
Average Tenure
63.5
Average Age
  • The average tenure for the Encompass Health board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Lee Higdon

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$440K
AGE
72
TENURE
4.9 yrs

Mark Tarr

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
56
TENURE
2.3 yrs

Ed Shaw

TITLE
Independent Director
COMPENSATION
$328K
AGE
73
TENURE
13.8 yrs

Yvonne Curl

TITLE
Independent Director
COMPENSATION
$330K
AGE
63
TENURE
14.4 yrs

John Chidsey

TITLE
Independent Director
COMPENSATION
$320K
AGE
55
TENURE
11.5 yrs

Joan Herman

TITLE
Independent Director
COMPENSATION
$284K
AGE
64
TENURE
6.3 yrs

Leslye Katz

TITLE
Independent Director
COMPENSATION
$294K
AGE
63
TENURE
6.3 yrs

John Maupin

TITLE
Independent Director
COMPENSATION
$315K
AGE
71
TENURE
14.7 yrs

Charles Elson

TITLE
Independent Director
COMPENSATION
$319K
AGE
58
TENURE
14.6 yrs

Don Correll

TITLE
Independent Director
COMPENSATION
$315K
AGE
68
TENURE
13.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Encompass Health insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Buy Leo Higdon Individual 07. Mar 19 07. Mar 19 1,000 $58.84 $58,840
14. Aug 18 Sell Andrew Price Individual 14. Aug 18 14. Aug 18 -9,457 $80.04 $-756,938
06. Aug 18 Sell Cheryl Levy Individual 03. Aug 18 03. Aug 18 -28,955 $78.00 $-2,258,490
15. May 18 Sell Barbara Jacobsmeyer Individual 14. May 18 14. May 18 -1,798 $62.73 $-112,789
11. May 18 Sell Cheryl Levy Individual 09. May 18 09. May 18 -30,982 $63.00 $-1,951,866
X
Management checks
We assess Encompass Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Encompass Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EHC News

Simply Wall St News

What Should You Know About Encompass Health Corporation's (NYSE:EHC) Growth?

After Encompass Health Corporation's (NYSE:EHC) earnings announcement in December 2018,. … as a 29% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 11%

Simply Wall St -

Do You Know Encompass Health Corporation’s (NYSE:EHC) Cash Situation?

Two important questions to ask before you buy Encompass Health Corporation (NYSE:EHC) is, how it makes money and how it spends its cash. … Encompass Health generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Encompass Health’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

4 Days Left Until Encompass Health Corporation (NYSE:EHC) Trades Ex-Dividend

On the 15 April 2019, Encompass Health Corporation (NYSE:EHC) will be paying shareholders an upcoming dividend amount of US$0.27 per share. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Should Encompass Health Corporation (NYSE:EHC) Be Part Of Your Portfolio?

Historically, Encompass Health Corporation (NYSE:EHC) has been paying a dividend to shareholders. … Let's dig deeper into whether Encompass Health should have a place in your portfolio. … See our latest analysis for Encompass Health

Simply Wall St -

Is Encompass Health Corporation (NYSE:EHC) Investing Effectively In Its Business?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … First up, we'll look at what ROCE is and how we calculate it. … Return On Capital Employed (ROCE): What is it?

Simply Wall St -

Is Encompass Health Corporation's (NYSE:EHC) Stock Available For A Good Price After Accounting For Growth?

Looking at Encompass Health Corporation’s (NYSE:EHC) fundamentals some investors are wondering if its last closing price of $65.13 represents a good value for money for this high growth stock. … What can we expect from Encompass Health in the future. … Analysts are predicting good growth prospects for Encompass Health over the next couple of years

Simply Wall St -

What Are Analysts Saying About Encompass Health Corporation's (NYSE:EHC) Earnings Outlook?

Help shape the future of investing tools and you could win a $250 gift card! … Encompass Health Corporation's (NYSE:EHC) announced its latest earnings update in December 2018, whicha

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Encompass Health Corporation (NYSE:EHC)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Encompass Health Corporation's (NYSE:EHC) P/E ratio and reflect on what it tells us about the company's share price. … Encompass Health has a P/E ratio of 20.4, based on the last twelve months.

Simply Wall St -

Encompass Health Corporation (NYSE:EHC) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in Encompass Health Corporation (NYSE:EHC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

Boasting A 23% Return On Equity, Is Encompass Health Corporation (NYSE:EHC) A Top Quality Stock?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Encompass Health Corporation (NYSE:EHC). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

EHC Company Info

Description

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 and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis 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. The Home Health and Hospice segment provides home health and hospice services primarily in the Southeast and Texas. Its home health services include a range of Medicare-certified home nursing services to adult patients in need of care comprising skilled nursing, medical social work, and home health aide services, as well as physical, occupational, speech therapy, and others. This segment’s hospice services comprise in-home services to terminally ill patients and their families to address patients’ physical needs, including pain control and symptom management, and to provide emotional and spiritual support. As of February 21, 2019, Encompass Health Corporation operated 130 hospitals, and 278 home health and hospice agencies in 36 states and Puerto Rico. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.

Details
Name: Encompass Health Corporation
EHC
Exchange: NYSE
Founded: 1983
$6,050,039,855
98,743,918
Website: http://www.encompasshealth.com
Address: Encompass Health Corporation
9001 Liberty Parkway,
Birmingham,
Alabama, 35242,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EHC Common Stock New York Stock Exchange US USD 24. Sep 1986
DB HSOA Common Stock Deutsche Boerse AG DE EUR 24. Sep 1986
BMV EHC * Common Stock Bolsa Mexicana de Valores MX MXN 24. Sep 1986
Number of employees
Current staff
Staff numbers
33,050
Encompass Health employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:45
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.