EHC official logo EHC
EHC 2-star rating from Upturn Advisory
Encompass Health Corp (EHC) company logo

Encompass Health Corp (EHC)

Encompass Health Corp (EHC) 2-star rating from Upturn Advisory
$115.3
Last Close (24-hour delay)
Profit since last BUY-10.48%
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SELL
SELL since 4 days
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Upturn Advisory Summary

11/05/2025: EHC (2-star) is a SELL. SELL since 4 days. Simulated Profits (-10.48%). Updated daily EoD!

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

3 star rating from financial analysts

12 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $140.33

1 Year Target Price $140.33

Analysts Price Target For last 52 week
$140.33 Target price
52w Low $87.45
Current$115.3
52w High $127.99

Analysis of Past Performance

Type Stock
Historic Profit 39.4%
Avg. Invested days 85
Today’s Advisory SELL
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
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 11/05/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 11.60B USD
Price to earnings Ratio 21.75
1Y Target Price 140.33
Price to earnings Ratio 21.75
1Y Target Price 140.33
Volume (30-day avg) 12
Beta 0.58
52 Weeks Range 87.45 - 127.99
Updated Date 11/7/2025
52 Weeks Range 87.45 - 127.99
Updated Date 11/7/2025
Dividends yield (FY) 0.61%
Basic EPS (TTM) 5.3

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 1.23

Profitability

Profit Margin 9.34%
Operating Margin (TTM) 16.49%

Management Effectiveness

Return on Assets (TTM) 9.4%
Return on Equity (TTM) 24.41%

Valuation

Trailing PE 21.75
Forward PE 20.92
Enterprise Value 15031028949
Price to Sales(TTM) 2
Enterprise Value 15031028949
Price to Sales(TTM) 2
Enterprise Value to Revenue 2.65
Enterprise Value to EBITDA 11.51
Shares Outstanding 100615977
Shares Floating 99114787
Shares Outstanding 100615977
Shares Floating 99114787
Percent Insiders 1.41
Percent Institutions 96.79

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Encompass Health Corp

Encompass Health Corp(EHC) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo 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.

Company business area logo 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 logo 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

Product Key Offerings logo 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 logo 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 competitor logo 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.

Similar Stocks

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.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries 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 28851
Full time employees 28851

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.