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Encompass Health Corp (EHC)



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Upturn Advisory Summary
07/09/2025: EHC (4-star) is a REGULAR-BUY. BUY since 57 days. Profits (14.48%). Updated daily EoD!
1 Year Target Price $131.58
1 Year Target Price $131.58
10 | Strong Buy |
2 | Buy |
0 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 66.82% | Avg. Invested days 115 | Today’s Advisory Regular Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.03B USD | Price to earnings Ratio 24.56 | 1Y Target Price 131.58 |
Price to earnings Ratio 24.56 | 1Y Target Price 131.58 | ||
Volume (30-day avg) 12 | Beta 0.77 | 52 Weeks Range 82.19 - 123.00 | Updated Date 07/8/2025 |
52 Weeks Range 82.19 - 123.00 | Updated Date 07/8/2025 | ||
Dividends yield (FY) 0.55% | Basic EPS (TTM) 4.81 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.97% | Operating Margin (TTM) 18.35% |
Management Effectiveness
Return on Assets (TTM) 8.97% | Return on Equity (TTM) 24.58% |
Valuation
Trailing PE 24.56 | Forward PE 24.45 | Enterprise Value 14641144875 | Price to Sales(TTM) 2.18 |
Enterprise Value 14641144875 | Price to Sales(TTM) 2.18 | ||
Enterprise Value to Revenue 2.66 | Enterprise Value to EBITDA 11.69 | Shares Outstanding 100797000 | Shares Floating 99408951 |
Shares Outstanding 100797000 | Shares Floating 99408951 | ||
Percent Insiders 1.41 | Percent Institutions 97.85 |
Upturn AI SWOT
Encompass Health Corp

Company Overview
History and Background
Encompass Health Corp., formerly HealthSouth, was founded in 1984. It grew rapidly through acquisitions in the 1990s and 2000s, focusing on inpatient rehabilitation hospitals and home health services. It rebranded to Encompass Health in 2018.
Core Business Areas
- Inpatient Rehabilitation: Operates a network of inpatient rehabilitation hospitals across the United States, providing comprehensive rehabilitation services for patients recovering from strokes, spinal cord injuries, brain injuries, and other debilitating conditions.
- Home Health: Offers home-based healthcare services, including skilled nursing, therapy, and other services, to patients in their homes. (This was spun-off as Enhabit Home Health & Hospice in 2022).
Leadership and Structure
Mark Tarr is the CEO. The company has a board of directors overseeing its strategic direction. Operations are structured around its inpatient rehabilitation hospital segment.
Top Products and Market Share
Key Offerings
- Inpatient Rehabilitation Services: Comprehensive rehabilitation programs, including physical therapy, occupational therapy, speech therapy, and other services, provided in inpatient rehabilitation hospitals. Market share data is difficult to pinpoint precisely, but Encompass Health is a major player in the fragmented market. Competitors include Select Medical (SEM), Kindred Healthcare (now ScionHealth), and numerous regional and local providers. Revenue is primary driver.
Market Dynamics
Industry Overview
The inpatient rehabilitation industry is driven by an aging population, increasing prevalence of chronic diseases, and advancements in medical technology. Demand is influenced by regulatory changes and reimbursement policies.
Positioning
Encompass Health is a leading provider of inpatient rehabilitation services in the United States, with a strong brand reputation and a large network of hospitals. Competitive advantages include its scale, clinical expertise, and integrated care model.
Total Addressable Market (TAM)
The US rehabilitation services market size was valued at USD 42.74 billion in 2023 and is projected to grow from USD 44.98 billion in 2024 to USD 66.04 billion by 2032. Encompass Health holds a single-digit market share percentage of this TAM and focuses on the inpatient rehab segment.
Upturn SWOT Analysis
Strengths
- Large network of hospitals
- Strong brand reputation
- Clinical expertise
- Integrated care model
- Experienced management team
Weaknesses
- Dependence on Medicare and Medicaid reimbursement
- Exposure to regulatory changes
- Labor costs
- Geographic concentration
- High capital expenditure requirements
Opportunities
- Expanding into new markets
- Developing new service lines
- Acquiring smaller rehabilitation providers
- Leveraging technology to improve efficiency
- Partnerships with acute care hospitals
Threats
- Changes in reimbursement policies
- Increased competition
- Rising labor costs
- Economic downturn
- Healthcare reform
Competitors and Market Share
Key Competitors
- SEM
- NHC
- LHCG
Competitive Landscape
Encompass Health has advantages in scale and brand recognition but faces competition from other large providers and regional players. Success depends on efficient operations, high-quality care, and adapting to industry changes.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 500
- Strategic Rationale: Expand geographic footprint and service offerings. Example: The example is not actual data, this is a placeholder.
Growth Trajectory and Initiatives
Historical Growth: Encompass Health has historically grown through acquisitions and organic expansion of its hospital network.
Future Projections: Future growth projections are based on analyst estimates and require real-time data, thus not included in this static response.
Recent Initiatives: Focus on improving operational efficiency, expanding service offerings, and investing in technology.
Summary
Encompass Health is a leading inpatient rehabilitation provider with a strong market position, facing challenges related to reimbursement and competition. The company is focusing on operational improvements and strategic growth initiatives. Regulatory risks and labor costs need to be carefully watched. Encompass Health's large network and established brand offer competitive advantages.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Actual results may vary.
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 28572 | Website https://www.encompasshealth.com |
Full time employees 28572 | 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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