Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States.
Proven track record with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: EHC underperformed the US Healthcare industry which returned 14.2% over the past year.
Return vs Market: EHC underperformed the US Market which returned 4.8% over the past year.
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
2 months ago | Simply Wall StIs Encompass Health Corporation's (NYSE:EHC) CEO Pay Justified?
2 months ago | Simply Wall StShould You Investigate Encompass Health Corporation (NYSE:EHC) At US$60.08?
3 months ago | Simply Wall StEncompass Health Corporation (NYSE:EHC) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
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 ($62.15) is trading above our estimate of fair value ($56.31)
Significantly Below Fair Value: EHC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EHC is good value based on its PE Ratio (17.8x) compared to the Healthcare industry average (24x).
PE vs Market: EHC is poor value based on its PE Ratio (17.8x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: EHC is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: EHC is overvalued based on its PB Ratio (4.3x) compared to the US Healthcare industry average (2.7x).
How is Encompass Health forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EHC's forecast earnings growth (15.4% per year) is above the savings rate (2.2%).
Earnings vs Market: EHC's earnings (15.4% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: EHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: EHC's revenue (8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: EHC's revenue (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 high in 3 years time (22.9%)
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 (7.3%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: EHC's earnings have grown by 13.5% per year over the past 5 years.
Accelerating Growth: EHC's earnings growth over the past year (10.9%) is below its 5-year average (13.5% per year).
Earnings vs Industry: EHC earnings growth over the past year (10.9%) exceeded the Healthcare industry 10.1%.
Return on Equity
High ROE: Whilst EHC's Return on Equity (23.45%) is high, this metric is skewed due to their high level of debt.
How is Encompass Health's financial position?
Financial Position Analysis
Short Term Liabilities: EHC's short term assets ($784.5M) exceed its short term liabilities ($586.2M).
Long Term Liabilities: EHC's short term assets ($784.5M) do not cover its long term liabilities ($3.7B).
Debt to Equity History and Analysis
Debt Level: EHC's debt to equity ratio (162.8%) is considered high.
Reducing Debt: EHC's debt to equity ratio has reduced from 277% to 162.8% over the past 5 years.
Debt Coverage: EHC's debt is not well covered by operating cash flow (16.9%).
Interest Coverage: EHC's interest payments on its debt are well covered by EBIT (4.2x coverage).
What is Encompass Health current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EHC's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: EHC's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (4.51%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, EHC has been paying a dividend for less than 10 years.
Growing Dividend: EHC's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.8%), EHC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EHC's dividends in 3 years are forecast to be well covered by earnings (28.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Tarr (58yo)
Mr. Mark J. Tarr serves as President, Chief Executive Officer And Director of Encompass Health Corp. since December 29, 2016. Mr. Tarr serves as the Principal Executive Officer and President at HEALTHSOUTH ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD7.27M) is about average for companies of similar size in the US market ($USD7.32M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|CEO, President & Director||3.58yrs||US$7.27m||0.39% $23.8m|
|Executive VP & CFO||10.17yrs||US$2.93m||0.16% $9.8m|
|Executive VP||4.42yrs||US$1.92m||0.043% $2.6m|
|Executive VP & President of Inpatient Hospitals||2.42yrs||US$2.49m||0.045% $2.8m|
|Chief Executive Officer of Home Health & Hospice||5.58yrs||US$2.53m||0.19% $11.9m|
|Senior VP & Chief Accounting Officer||10.75yrs||no data||0.072% $4.4m|
|Chief Information Officer & Senior VP||9yrs||no data||no data|
|Chief Investor Relations Officer||4.83yrs||no data||no data|
|Chief Compliance Officer||5yrs||no data||no data|
|Chief Human Resources Officer||0.50yr||no data||no data|
Experienced Management: EHC's management team is considered experienced (4.9 years average tenure).
|CEO, President & Director||3.58yrs||US$7.27m||0.39% $23.8m|
|Independent Director||12.75yrs||US$332.79k||0.12% $7.3m|
|Independent Director||15.08yrs||US$323.24k||0.074% $4.5m|
|Independent Director||7.5yrs||US$289.22k||0.029% $1.8m|
|Independent Director||15.92yrs||US$323.24k||0.078% $4.8m|
|Independent Director||15.83yrs||US$323.24k||0.079% $4.9m|
|Independent Non-Executive Chairman of the Board||6.17yrs||US$448.24k||0.077% $4.7m|
|Independent Director||7.5yrs||US$299.22k||0.029% $1.8m|
|Independent Director||15.08yrs||US$337.14k||0.095% $5.9m|
|Independent Director||15.67yrs||US$339.18k||0.075% $4.6m|
Experienced Board: EHC's board of directors are seasoned and experienced ( 13.9 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$6.178b
- Shares outstanding: 99.41m
- Website: https://www.encompasshealth.com
Number of Employees
- Encompass Health Corporation
- 9001 Liberty Parkway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EHC||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 1986|
|HSOA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 1986|
|EHC *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Sep 1986|
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 June 15, 2020, Encompass Health Corporation operated 136 hospitals, 245 home health locations, and 83 hospice locations in 39 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/02 23:52|
|End of Day Share Price||2020/07/02 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.