A Business at a Glance
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Overview of the Company We are the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment, using advanced technology and intensive therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence and quality of life. We operate hospitals in 39 states and Puerto Rico, with concentrations in Florida and Texas. As of December 31, 2025, we operated 173 inpatient rehabilitation hospitals. We are committed to delivering high-quality, cost-effective patient care. For 2025, we were named America’s Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and ranked among Fortune’s World’s Most Admired Companies™ and Forbes’ Most Trusted Companies in America. Our common stock is traded on the New York Stock Exchange (symbol “EHC”).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.9B | 5.9B | 5.4B | 4.8B | 4.3B | 4.0B |
| Net Income | 565M | 565M | 453M | 350M | 270M | 410M |
| EPS | $5.54 | $5.54 | $4.46 | $3.47 | $2.70 | $4.11 |
| Free Cash Flow | 439M | 439M | 360M | 268M | 141M | 191M |
| ROIC | 12.9% | 14.7% | 13.2% | 11.4% | 8.9% | 8.9% |
| Gross Margin | 29.3% | 29.3% | 28.1% | 28.1% | 27.7% | 30.2% |
| Debt/Equity | 1.11 | 1.11 | 1.31 | 1.78 | 2.28 | 1.82 |
| Dividends/Share | $0.70 | $0.72 | $0.64 | $0.60 | $0.86 | $1.12 |
| Operating Income | 881M | 881M | 741M | 625M | 540M | 560M |
| Operating Margin | 14.8% | 14.8% | 13.8% | 13.0% | 12.4% | 13.9% |
| ROE | 23.2% | 25.1% | 24.4% | 23.6% | 16.7% | 23.5% |
| Shares Outstanding | 102M | 102M | 102M | 101M | 100M | 100M |
Encompass Health Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Encompass Health Corp trades at 19.4x trailing earnings, compared to its 15-year median P/E of 19.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 24.3x vs a median of 22.3x. The company's 5-year average ROIC is 11.4% with a gross margin of 28.7%. Total shareholder yield (dividends + buybacks) is 2.1%. At current prices, the estimated annualized return to fair value is +0.6%.
Encompass Health Corp (EHC) has a current P/E ratio of 19.4, compared to its historical median P/E of 19.1. The stock is currently considered Fair based on its historical valuation range.
Encompass Health Corp (EHC) has a 5-year average return on invested capital (ROIC) of 11.4%. This indicates solid capital allocation.
Encompass Health Corp (EHC) has a market capitalization of $11.0B. It is classified as a large-cap stock.
Yes, Encompass Health Corp (EHC) pays a dividend with a trailing twelve-month yield of 0.65%. The company also returns capital through share buybacks, with a buyback yield of 1.44%.
Based on historical P/E analysis, Encompass Health Corp (EHC) appears fair. The current P/E of 19.4 is 2% above its historical median of 19.1. The estimated fair value CAGR (P/E method) is 11.0%.
Encompass Health Corp (EHC) operates in the Services-Hospitals industry, within the Healthcare sector.
Encompass Health Corp (EHC) reported annual revenue of $5.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Encompass Health Corp (EHC) has a net profit margin of 9.5%. This is a modest margin.
Encompass Health Corp (EHC) generated $439 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Encompass Health Corp (EHC) has a debt-to-equity ratio of 1.11. This indicates moderate leverage.
Encompass Health Corp (EHC) reported earnings per share (EPS) of $5.54 in its most recent fiscal year.
Encompass Health Corp (EHC) has a return on equity (ROE) of 25.1%. This indicates the company generates strong returns for shareholders.
Encompass Health Corp (EHC) has a 5-year average gross margin of 28.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for Encompass Health Corp (EHC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Encompass Health Corp (EHC) has a book value per share of $23.92, based on its most recent annual SEC filing.