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Upturn AI SWOT - About
Encompass Health Corp (EHC)

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Upturn Advisory Summary
10/23/2025: EHC (4-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $139.08
1 Year Target Price $139.08
| 10 | Strong Buy |
| 2 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 55.72% | Avg. Invested days 101 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.73B USD | Price to earnings Ratio 24.63 | 1Y Target Price 139.08 |
Price to earnings Ratio 24.63 | 1Y Target Price 139.08 | ||
Volume (30-day avg) 12 | Beta 0.8 | 52 Weeks Range 87.45 - 127.88 | Updated Date 10/24/2025 |
52 Weeks Range 87.45 - 127.88 | Updated Date 10/24/2025 | ||
Dividends yield (FY) 0.54% | Basic EPS (TTM) 5.12 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-10-28 | When After Market | Estimate 1.19 | Actual - |
Profitability
Profit Margin 9.22% | Operating Margin (TTM) 17.77% |
Management Effectiveness
Return on Assets (TTM) 9.18% | Return on Equity (TTM) 24.72% |
Valuation
Trailing PE 24.63 | Forward PE 20.92 | Enterprise Value 15031028949 | Price to Sales(TTM) 2.25 |
Enterprise Value 15031028949 | Price to Sales(TTM) 2.25 | ||
Enterprise Value to Revenue 2.65 | Enterprise Value to EBITDA 11.51 | Shares Outstanding 100723828 | Shares Floating 99223043 |
Shares Outstanding 100723828 | Shares Floating 99223043 | ||
Percent Insiders 1.41 | Percent Institutions 96.32 |
Upturn AI SWOT
Encompass Health Corp

Company Overview
History and Background
Encompass Health Corp. was founded in 1984 as HealthSouth Rehabilitation Corporation. It grew through acquisitions and organic expansion, becoming a leading provider of post-acute healthcare services. In 2018, the company rebranded as Encompass Health.
Core Business Areas
- Inpatient Rehabilitation: Provides intensive rehabilitation services for patients recovering from stroke, spinal cord injuries, brain injuries, and other complex conditions. This segment is the primary revenue driver.
- Home Health: Offers a range of home health services, including skilled nursing, therapy, and personal care, allowing patients to recover and manage their health in the comfort of their homes.
Leadership and Structure
The company is led by CEO Mark Tarr. The organizational structure is typical of a publicly traded corporation, with a board of directors overseeing executive management.
Top Products and Market Share
Key Offerings
- Home Health Services: This segment includes skilled nursing, rehabilitation, and personal care services delivered in patients' homes. While a significant portion of revenue, their market share in this segment is hard to determine as there are a larger amount of small firms that are local. Competitors include LHC Group and Amedisys.
- Inpatient Rehabilitation Services: These services constitute the majority of Encompass Health's revenue. Market share is estimated at approximately 25% within the fragmented inpatient rehabilitation market, facing competition from Select Medical and Kindred Healthcare. This market share data is estimated and dependent upon numerous sources.
Market Dynamics
Industry Overview
The post-acute healthcare industry is experiencing growth due to the aging population, increasing prevalence of chronic diseases, and a shift towards value-based care. Regulatory changes and reimbursement pressures are also key factors.
Positioning
Encompass Health is a leading player in the inpatient rehabilitation market, with a strong network of hospitals and a reputation for quality care. Its competitive advantages include its scale, expertise, and established relationships with payers and referral sources.
Total Addressable Market (TAM)
The total addressable market for post-acute care in the US is estimated to be over $200 billion. Encompass Health is well-positioned to capture a significant share of this market due to its leading position in inpatient rehabilitation and growing presence in home health.
Upturn SWOT Analysis
Strengths
- Leading market position in inpatient rehabilitation
- Strong brand reputation
- Extensive network of hospitals and home health agencies
- Experienced management team
- Focus on quality care and patient outcomes
Weaknesses
- Exposure to regulatory and reimbursement changes
- High labor costs
- Geographic concentration in certain markets
- Dependence on referrals from hospitals and physicians
Opportunities
- Expansion into new markets
- Acquisition of smaller competitors
- Development of new service lines
- Increased demand for post-acute care due to aging population
- Leveraging technology to improve efficiency and patient outcomes
Threats
- Increased competition
- Changes in reimbursement policies
- Rising labor costs
- Economic downturn
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- SELE
- LHCG
- AMED
Competitive Landscape
Encompass Health benefits from being a market leader, but faces challenges from other large, national providers as well as smaller, regional players. Differentiation through quality and specialized services is crucial.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 500
- Strategic Rationale: Expand geographic presence and service offerings.
Growth Trajectory and Initiatives
Historical Growth: Encompass Health has experienced consistent growth in revenue and earnings over the past several years, driven by organic growth, acquisitions, and a favorable industry environment.
Future Projections: Analyst estimates project continued growth in revenue and earnings for Encompass Health, driven by the aging population and increasing demand for post-acute care services.
Recent Initiatives: Recent initiatives include expanding its home health footprint, investing in technology to improve efficiency, and focusing on value-based care models.
Summary
Encompass Health is a leading post-acute healthcare provider with a strong position in inpatient rehabilitation. Its growth is fueled by demographic trends and strategic acquisitions. While regulatory pressures and rising costs present challenges, its focus on quality and expansion efforts position it for continued success, yet it must look out for rising labor costs.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and based on available industry reports and analyst estimates. Financial data requires access to live financial data and would be dynamic and is presented here as representative only.
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.
About Encompass Health Corp
Exchange NYSE | Headquaters 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 28678 | Website https://www.encompasshealth.com |
Full time employees 28678 | Website https://www.encompasshealth.com | ||
Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to 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.

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