Encompass Health (EHC) Stock Price, News & Analysis

Company Overview

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 patients who have experienced physical or cognitive disabilities or injuries due 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. The company was incorporated in 1984 and is based in Birmingham, Alabama.

Key Stats

• Today's Range: $98.29 to $99.58
• 50-Day Range: $91.31 to $103.53
• 52-Week Range: $63.78 to $104.55
• Volume: 678,090 shs
• Average Volume: 641,374 shs
• Market Capitalization: $9.96 billion
• P/E Ratio: 23.89
• Dividend Yield: 0.69%
• Price Target: $107.11
• Consensus Rating: Buy

Encompass Health Stock Analysis - MarketRank™

Encompass Health scored higher than 98% of companies evaluated by MarketBeat, and ranked 36th out of 963 stocks in the medical sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.6 / 5
• Analyst Rating: Buy

Consensus Rating

Encompass Health has received a consensus rating of Buy. The company's average rating score is 3.18, and is based on 9 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Encompass Health has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 11.19%

Earnings Growth

Earnings for Encompass Health are expected to grow by 11.19% in the coming year, from $4.29 to $4.77 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Encompass Health is 23.89, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 134.38.

Price to Earnings Ratio vs. Sector

The P/E ratio of Encompass Health is 23.89, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 130.53.

Price to Earnings Growth Ratio

Encompass Health has a PEG Ratio of 1.31. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Encompass Health has a P/B Ratio of 4.40. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.03% of the float of Encompass Health has been sold short.

Short Interest Ratio / Days to Cover

Encompass Health has a short interest ratio ("days to cover") of 1.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Encompass Health has recently decreased by 15.70%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Encompass Health has a dividend yield of 0.67%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Encompass Health does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Encompass Health is 16.43%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Encompass Health will have a dividend payout ratio of 14.26% next year. This indicates that Encompass Health will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 5.0 / 5
• Environmental Score: -0.71

Percentage of Shares Shorted

1.03% of the float of Encompass Health has been sold short.

Short Interest Ratio / Days to Cover

Encompass Health has a short interest ratio ("days to cover") of 1.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Encompass Health has recently decreased by 15.70%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.7 / 5
• News Sentiment: 0.67

News Sentiment

Encompass Health has a news sentiment score of 0.67. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.45 average news sentiment score of Medical companies.

News Coverage This Week

MarketBeat has tracked 14 news articles for Encompass Health this week, compared to 6 articles on an average week.

Search Interest

6 people have searched for EHC on MarketBeat in the last 30 days. This is an increase of 20% compared to the previous 30 days.

MarketBeat Follows

6 people have added Encompass Health to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Encompass Health insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.10% of the stock of Encompass Health is held by insiders.

Percentage Held by Institutions

97.25% of the stock of Encompass Health is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

EHC Stock Analysis - Frequently Asked Questions

How have EHC shares performed this year?

Encompass Health's stock was trading at $66.72 on January 1st, 2024. Since then, EHC stock has increased by 48.2% and is now trading at $98.90.
View the best growth stocks for 2024 here.

How were Encompass Health's earnings last quarter?

Encompass Health Co. (NYSE:EHC) issued its quarterly earnings data on Monday, October, 28th. The company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.09. The business's revenue was up 11.9% on a year-over-year basis.

Is Encompass Health buying back stock?

Encompass Health's board authorized a stock buyback plan on Wednesday, July 24th 2024, which authorizes the company to repurchase $500,000,000 in shares, according to EventVestor. This means that the company could purchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Does Encompass Health have any subsidiaries?

The following companies are subsidiaries of Encompass Health: Baptist Outpatient Services Inc., Frontier Home Health and Hospice, Generation Solutions of Lynchburg LLC, Alacare Home Health & Hospice, Camellia Healthcare, CareSouth Health System Inc., Reliant Hospital Partners LLC, and more.

Who are Encompass Health's major shareholders?

Encompass Health's top institutional shareholders include Wellington Management Group LLP (5.18%), State Street Corp (3.00%), FMR LLC (1.94%) and Geode Capital Management LLC (1.66%). Insiders that own company stock include Mark J Tarr, Douglas E Coltharp, John Patrick Darby, Elissa Joy Charbonneau, Greg D Carmichael, Kevin J O'connor and Terrance Williams.
View institutional ownership trends.

How do I buy shares of Encompass Health?

Shares of EHC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Encompass Health own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Encompass Health investors own include NVIDIA (NVDA), Meta Platforms (META), Broadcom (AVGO), Advanced Micro Devices (AMD), Adobe (ADBE), ServiceNow (NOW) and Arista Networks (ANET).

Company Calendar

• Ex-Dividend for 10/15 Dividend: 10/01/2024
• Dividend Payable: 10/15/2024
• Last Earnings: 10/28/2024
• Today: 11/20/2024
• Fiscal Year End: 12/31/2024
• Ex-Dividend for 1/15 Dividend: 1/02/2025
• Dividend Payable: 1/15/2025
• Next Earnings (Estimated): 2/05/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Medical
• Industry: Hospitals
• Sub-Industry: Health Care Facilities
• Current Symbol: NYSE:EHC
• CUSIP: 42192430
• CIK: 785161
• Web: www.healthsouth.com
• Phone: (205) 967-7116
• Fax: 205-969-4719
• Employees: 38,000
• Year Founded: 1984

Price Target and Rating

• Average Stock Price Target: $107.11
• High Stock Price Target: $117.00
• Low Stock Price Target: $95.00
• Potential Upside/Downside: +8.3%
• Consensus Rating: Buy
• Rating Score (0-4): 3.18
• Research Coverage: 11 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $4.14
• Trailing P/E Ratio: 23.89
• Forward P/E Ratio: 23.05
• P/E Growth: 1.31
• Net Income: $352 million
• Net Margins: 8.10%
• Pretax Margin: 13.67%
• Return on Equity: 17.60%
• Return on Assets: 6.83%

Debt

• Debt-to-Equity Ratio: 0.88
• Current Ratio: 1.04
• Quick Ratio: 1.04

Sales & Book Value

• Annual Sales: $5.22 billion
• Price / Sales: 1.91
• Cash Flow: $6.52 per share
• Price / Cash Flow: 15.18
• Book Value: $22.50 per share
• Price / Book: 4.40

Miscellaneous

• Outstanding Shares: 100,750,000
• Free Float: 98,634,000
• Market Cap: $9.96 billion
• Optionable: Optionable
• Beta: 0.88