Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
How It Works 
News - Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
Upturn AI Summary - About
Encompass Health Corp(EHC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for EHC
09/25/2026: EHC (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Encompass Health Corp is a major provider of inpatient rehabilitation services, operating a national network of hospitals that focus on intensive recovery for patients with complex medical needs. The company is known for its strong clinical outcomes and specialized care models, which serve as key competitive advantages. Its primary growth opportunity lies in the ongoing expansion of its hospital network and the rising demand from an aging population. However, the business faces risks related to its high dependence on government reimbursement rates and the rising costs of specialized clinical labor. It is a stable, dividend-paying stock that may best suit value-oriented or income-focused investors monitoring reimbursement trends.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers steady, predictable growth rather than high-octane expansion. |
| Momentum investor | Mixed fit | Momentum appeal is conditional on consistent quarterly beats and favorable market sentiment toward healthcare services. |
| Value investor | Strong fit | The company is often viewed as a value play due to its stable cash flows and established market position. |
| Dividend investor | Strong fit | The reliable dividend yield makes it an attractive candidate for income-focused portfolios. |
| Low-risk investor | Strong fit | The essential nature of rehabilitation services provides a defensive characteristic during market volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can react sharply to regulatory changes affecting Medicare payments. |
| Valuation risk | Low | The company typically trades at reasonable multiples relative to its earnings stability. |
| Competition risk (rehabilitation services) | Medium | Regional hospital systems continue to compete for patient referrals. |
| Business quality | Strong | The company has a focused, high-quality asset base with consistent operational performance. |
| Dividend income | Low / none | The dividend is well-supported by current cash flows. |
| Execution risk | Medium | The success of the de novo hospital expansion program relies on effective labor recruitment and regulatory approvals. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 32.87% | Avg. Invested days 65 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.18B USD | Price to earnings Ratio 20.61 | 1Y Target Price 148.17 |
Price to earnings Ratio 20.61 | 1Y Target Price 148.17 | ||
Volume (30-day avg) 850.8K shares | Beta 0.61 | 52 Weeks Range 92.41 - 127.50 | Updated Date 09/25/2026 |
52 Weeks Range 92.41 - 127.50 | Updated Date 09/25/2026 | ||
Dividends yield (FY) 0.62% | Basic EPS (TTM) 5.99 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Inpatient Rehabilitation | Clinical services provided at its dedicated rehabilitation hospitals. | The company makes money primarily by providing specialized inpatient medical care that helps patients recover from severe conditions. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 20.61 | Forward PE 18.9 | Enterprise Value 14.79B | Price to Sales(TTM) 1.96 |
Enterprise Value 14.79B | Price to Sales(TTM) 1.96 | ||
Enterprise Value to Revenue 2.38 | Enterprise Value to EBITDA 9.86 | Shares Outstanding 98.65M | Shares Floating 97.65M |
Shares Outstanding 98.65M | Shares Floating 97.65M | ||
Percent Insiders 0.87 | Percent Institutions 100.93 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Encompass Health Corp
Exchange NYSE | Headquarters Birmingham, AL, United States | ||
IPO Launch date 1986-09-30 | CEO, President & Director Mr. Mark J. Tarr | ||
Sector Healthcare | Industry Medical Care Facilities | Full time employees 29699 | Website https://www.encompasshealth.com |
Full time employees 29699 | Website https://www.encompasshealth.com | ||
Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and 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; medical, nursing, therapy, and ancillary services; and rehabilitative care 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. It offers services through the Medicare program to the federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was incorporated in 1984 and is based in Birmingham, Alabama.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.
All company names, trademarks, logos, and brands are the property of their respective owners and are used for identification and informational purposes only. Use of these names, trademarks, and logos does not imply endorsement by their respective owners.