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EHC

Encompass HealthNYSE:EHC Stock Report

Market Cap

US$5.7b

7D

-9.6%

1Y

-27.8%

Updated

30 Nov, 2021

Data

Company Financials +
EHC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends3/6

EHC Stock Overview

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States.

Encompass Health Competitors

Universal Health Services

NYSE:UHS

US$9.5b

Acadia Healthcare Company

NasdaqGS:ACHC

US$5.1b

Ensign Group

NasdaqGS:ENSG

US$4.2b

Surgery Partners

NasdaqGS:SGRY

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Encompass Health
Historical stock prices
Current Share PriceUS$57.62
52 Week HighUS$89.68
52 Week LowUS$57.56
Beta0.99
1 Month Change-9.35%
3 Month Change-27.51%
1 Year Change-27.84%
3 Year Change-21.08%
5 Year Change39.85%
Change since IPO292.31%

Recent News & Updates

Nov 09
Should You Think About Buying Encompass Health Corporation (NYSE:EHC) Now?

Should You Think About Buying Encompass Health Corporation (NYSE:EHC) Now?

While Encompass Health Corporation ( NYSE:EHC ) might not be the most widely known stock at the moment, it received a...

Oct 24
Encompass Health (NYSE:EHC) Is Due To Pay A Dividend Of US$0.28

Encompass Health (NYSE:EHC) Is Due To Pay A Dividend Of US$0.28

Encompass Health Corporation ( NYSE:EHC ) has announced that it will pay a dividend of US$0.28 per share on the 18th of...

Oct 13
Here's What To Make Of Encompass Health's (NYSE:EHC) Decelerating Rates Of Return

Here's What To Make Of Encompass Health's (NYSE:EHC) Decelerating Rates Of Return

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

EHCUS HealthcareUS Market
7D-9.6%-3.6%-2.8%
1Y-27.8%17.0%20.0%

Return vs Industry: EHC underperformed the US Healthcare industry which returned 17% over the past year.

Return vs Market: EHC underperformed the US Market which returned 20% over the past year.

Price Volatility

Is EHC's price volatile compared to industry and market?
EHC volatility
EHC Average Weekly Movement3.8%
Healthcare Industry Average Movement6.5%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: EHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EHC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198329,122Mark Tarrhttps://www.encompasshealth.com

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.

Encompass Health Fundamentals Summary

How do Encompass Health's earnings and revenue compare to its market cap?
EHC fundamental statistics
Market CapUS$5.73b
Earnings (TTM)US$405.30m
Revenue (TTM)US$5.02b

14.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EHC income statement (TTM)
RevenueUS$5.02b
Cost of RevenueUS$3.02b
Gross ProfitUS$2.00b
ExpensesUS$1.59b
EarningsUS$405.30m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.07
Gross Margin39.84%
Net Profit Margin8.08%
Debt/Equity Ratio121.7%

How did EHC perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

27%

Payout Ratio

Does EHC pay a reliable dividends?

See EHC dividend history and benchmarks
When do you need to buy EHC by to receive an upcoming dividend?
Encompass Health dividend dates
Ex Dividend DateDec 31 2021
Dividend Pay DateJan 18 2022
Days until Ex dividend29 days
Days until Dividend pay date47 days

Does EHC pay a reliable dividends?

See EHC dividend history and benchmarks

Valuation

Is Encompass Health undervalued compared to its fair value and its price relative to the market?

26.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EHC ($57.62) is trading below our estimate of fair value ($78.18)

Significantly Below Fair Value: EHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EHC is good value based on its PE Ratio (14.1x) compared to the US Healthcare industry average (21x).

PE vs Market: EHC is good value based on its PE Ratio (14.1x) compared to the US market (16.8x).


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 (3.1x) compared to the US Healthcare industry average (2.7x).


Future Growth

How is Encompass Health forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EHC's forecast earnings growth (6.1% per year) is above the savings rate (2%).

Earnings vs Market: EHC's earnings (6.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: EHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: EHC's revenue (7.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: EHC's revenue (7.7% 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 (20.4%)


Past Performance

How has Encompass Health performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EHC has high quality earnings.

Growing Profit Margin: EHC's current net profit margins (8.1%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: EHC's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: EHC's earnings growth over the past year (53%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: EHC earnings growth over the past year (53%) exceeded the Healthcare industry 32.5%.


Return on Equity

High ROE: Whilst EHC's Return on Equity (22.39%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Encompass Health's financial position?


Financial Position Analysis

Short Term Liabilities: EHC's short term assets ($909.8M) exceed its short term liabilities ($793.9M).

Long Term Liabilities: EHC's short term assets ($909.8M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: EHC's net debt to equity ratio (117.6%) is considered high.

Reducing Debt: EHC's debt to equity ratio has reduced from 294.1% to 121.7% over the past 5 years.

Debt Coverage: EHC's debt is well covered by operating cash flow (31.2%).

Interest Coverage: EHC's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

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

1.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateDec 31 2021Dividend Pay DateJan 18 202218 days from Ex DividendBuy in the next 29 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EHC's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: EHC's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 (27.4%), 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 thoroughly covered by earnings (4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Mark Tarr (59 yo)

4.92yrs

Tenure

US$6,925,127

Compensation

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 ($USD6.93M) is about average for companies of similar size in the US market ($USD6.24M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EHC's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: EHC's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Encompass Health Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Encompass Health Corporation
  • Ticker: EHC
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$5.733b
  • Shares outstanding: 99.49m
  • Website: https://www.encompasshealth.com

Number of Employees


Location

  • Encompass Health Corporation
  • 9001 Liberty Parkway
  • Birmingham
  • Alabama
  • 35242
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.