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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)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for EHC
11/13/2026: EHC (4-star) is a STRONG-BUY. BUY for 92 days. Simulated Profits (28.10%). Updated daily EoD!
Encompass Health Corp is a leading national provider of inpatient rehabilitation services, operating a specialized network of facilities across the United States. The company is known for its strong focus on standardized clinical outcomes and a growing portfolio of joint-venture hospitals that drive patient referrals. Its primary investment story centers on the secular demand for high-acuity rehabilitation as the US population ages. However, investors must monitor regulatory risks regarding Medicare reimbursement and potential wage pressures on staffing. With a stable business model, it may appeal to defensive-minded or value-oriented investors seeking reliable, long-term exposure to the healthcare services sector.
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 | Strong fit | The company offers reliable growth through the consistent expansion of its national hospital network. |
| Momentum investor | Mixed fit | Momentum depends on current market sentiment regarding healthcare policy and interest rate environments. |
| Value investor | Strong fit | The stock often trades at valuations that reflect its stable, cash-generative nature. |
| Dividend investor | Strong fit | The company pays a reliable dividend backed by stable, regulated cash flows. |
| Low-risk investor | Strong fit | Healthcare services provide a defensive business model that is generally less sensitive to economic cycles. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Low | The healthcare services sector typically exhibits lower beta compared to broader market indices. |
| Valuation risk | Medium | Investors should monitor market multiples in the context of federal healthcare funding stability. |
| Competition risk | Medium | Competition from large health systems attempting to capture post-acute care spend remains a constant threat. |
| Business quality | Strong | The company's focus on a single, high-margin niche provides strong operational predictability. |
| Dividend income | Low | Dividends are supported by stable, recurring revenue from government and private payers. |
| Execution risk | Medium | Success relies heavily on timely completion and staffing of new rehabilitation hospital developments. |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 13.83B USD | Price to earnings Ratio 22.56 | 1Y Target Price 156.08 |
Price to earnings Ratio 22.56 | 1Y Target Price 156.08 | ||
Volume (30-day avg) 1.1M shares | Beta 0.67 | 52 Weeks Range 92.25 - 143.90 | Updated Date 11/13/2026 |
52 Weeks Range 92.25 - 143.90 | Updated Date 11/13/2026 | ||
Dividends yield (FY) 0.55% | Basic EPS (TTM) 6.25 |
Sector & Industry Intelligence
Sector
Healthcare
Bullish- Sentiment
- Strong Bullish
- Momentum
- Momentum Steady
- BUY participation
- 62.6%
- Active BUY / eligible
- 72 / 115
- 30-Day BUY Count Change
- +35
- Market state
- Strong Bullish
The number of qualifying BUY stocks has remained relatively stable.
Industry
Medical Care Facilities
- BUY participation
- 88.9%
- Active BUY / eligible
- 8 / 9
- 30-Day BUY Count Change
- +6
Sector signal summarizes BUY breadth conditions for the sector. It does not override this stock’s BUY, SELL, or PASS advisory.
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 51.96% | Avg. Invested days 70 | Today’s Advisory Strong Buy |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
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
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Inpatient Rehabilitation | Revenue from patient stays, physical/occupational therapy, and clinical care at rehabilitation hospitals. | The company earns money by helping patients recover from surgeries and injuries in its specialized hospitals. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-10-28 | When After Market | Estimate 1.37 | Actual 1.52 |
Profitability
Profit Margin 10.17% | Operating Margin (TTM) 18.37% |
Management Effectiveness
Return on Assets (TTM) 10.08% | Return on Equity (TTM) 25.11% |
Valuation
Trailing PE 22.56 | Forward PE 19.12 | Enterprise Value 16.55B | Price to Sales(TTM) 2.18 |
Enterprise Value 16.55B | Price to Sales(TTM) 2.18 | ||
Enterprise Value to Revenue 2.61 | Enterprise Value to EBITDA 10.66 | Shares Outstanding 98.12M | Shares Floating 97.12M |
Shares Outstanding 98.12M | Shares Floating 97.12M | ||
Percent Insiders 0.87 | Percent Institutions 103.86 |
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.

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