Encompass Health Corp logo

Encompass Health Corp(EHC)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
4-STAR RATING
STRONG BUY
BUY for 92 days
PROFIT SINCE LAST BUY
+28.1% ▲
LAST CLOSE
$140.99
11/13/2026
(24-hour delay)

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)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

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 styleFitWhy
Growth investorStrong fitThe company offers reliable growth through the consistent expansion of its national hospital network.
Momentum investorMixed fitMomentum depends on current market sentiment regarding healthcare policy and interest rate environments.
Value investorStrong fitThe stock often trades at valuations that reflect its stable, cash-generative nature.
Dividend investorStrong fitThe company pays a reliable dividend backed by stable, regulated cash flows.
Low-risk investorStrong fitHealthcare services provide a defensive business model that is generally less sensitive to economic cycles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityLowThe healthcare services sector typically exhibits lower beta compared to broader market indices.
Valuation riskMediumInvestors should monitor market multiples in the context of federal healthcare funding stability.
Competition riskMediumCompetition from large health systems attempting to capture post-acute care spend remains a constant threat.
Business qualityStrongThe company's focus on a single, high-margin niche provides strong operational predictability.
Dividend incomeLowDividends are supported by stable, recurring revenue from government and private payers.
Execution riskMediumSuccess 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
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Moderately Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/13/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
EHC receives a 4-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
EHC has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+24.2%) and solid cash generation (FCF margin 7.4%) are partially offset by soft profitability (net margin 9.5%), very low insider ownership of 0.87%.

Financial Health Rating

★★★★★
EHC's financial health is supported by solid cash strength, including free-cash-flow generation (7.4% of revenue). Liquidity is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is EHC's strongest growth driver at +24.2% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+10.5%, solid) and free-cash-flow growth (+21.9%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 103.9% and approximately 99.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.87%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 10.68%
T. Rowe Price Associates, Inc. 5.15%
Vanguard Portfolio Management, LLC 5.02%
Vanguard Capital Management, LLC 4.56%
Wellington Management Company LLP 3.34%

Unit Economics (Per $1K Revenue)

★★★★★
EHC generates approximately $432 of gross profit, $177 of operating income, and $74 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and soft cash conversion support a 3-star rating, while capital efficiency is solid.

Economic Dimensions

★★★★★
Effective Tax Rate: 20.24%

Quantitative Style Profile

★★★★★
EHC has a high-quality, large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

How Company Makes Money

Business areaWhat it includesRetail investor read
Inpatient RehabilitationRevenue 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.