EH
Encompass Health Corp
EHC—
Encompass Health Corp AI Insights
Informational only. Not investment advice.Snapshot
- ROE of 25% TTM vs industry median 0.6% - 40x advantage from asset-heavy rehab hospital model with 17% operating margins[Return on Equity]
- Capex of 706M TTM (12% of revenue) consuming 64% of operating cash flow - growth requires heavy reinvestment[Capital Expenditure]
- Goodwill of 1.3B is 55% of equity; tangible book only 779M vs 10.9B market cap - 14x P/TBV[Goodwill]
Watch Triggers
- Operating Margin: Falls below 15% — Labor costs are 70%+ of rehab hospitals; margin compression signals pricing power erosion
- Capital Expenditure: Exceeds 15% of revenue — Higher capex without revenue acceleration would crush FCF and force debt increase
- Debt to Equity: Rises above 1.5x — Current 1.1x manageable; higher leverage with rising rates pressures 126M interest expense
Bull Case
Exceptional profitability moat: 17% operating margin vs 2% industry median with 25% ROE generates 541M net income on asset-intensive model competitors struggle to replicate
Operating MarginROENet Income
Consistent compounder: 25% 3Y EPS CAGR with only 5% revenue growth shows operating leverage; dividend payout ratio 25% leaves room for reinvestment
EPS Growth 3YTotal Revenue 5Y GrowthDividend Payout Ratio
Bear Case
Capital intensity trap: 706M annual capex (12% of revenue) with 1.1x debt/equity and 2.7B total debt limits financial flexibility; FCF only 403M TTM
Capital ExpenditureDebt to EquityFree Cash Flow
Valuation stretched: P/E 20x vs industry 35x looks cheap but P/B 14x and P/TBV 14x reflects intangible-heavy balance sheet risk
P/E RatioP/B RatioTangible Book Value
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
60%
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Forward Thesis
Margin expansion to continue as scale leverage offsets wage inflation
1-3ymed
- Operating margin 17% TTM with 96% gross margin
- EPS growth 25% 3Y CAGR outpacing 5% revenue growth
- G&A at 15% of revenue vs industry median 14%
Net margin 9.3% vs industry median 0.1%ROIC 11% on 4.8B invested capitalEPS 5.31 TTM growing 16% YoY
Valuation Context
Caveats
Public Strategies Rankings
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EHC Fundamentals
Health Care and Social Assistance → Ambulatory Health Care Services
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$10.28B | — | ||
$12.89B | — | ||
19 | — | ||
$5.8B | +11.1% | — | |
$5.31 | +24.9% | — | |
17.3% | +1.5% | — | |
9.33% | +1.2% | — | |
$402.6M | +49.4% | — | |
0.25 | +1.0% | — | |
Beta 5Y (Monthly) | unknown | — |
EHC Dividend History
50 dividends
2026
$0.190001/02/26$0.1900
2025
$0.700010/01/25$0.1900
07/01/25$0.1700
04/01/25$0.1700
01/02/25$0.1700
2024
$0.470010/01/24$0.1700
07/01/24$0.1500
03/28/24$0.1500
2023
$0.600012/29/23$0.1500
09/29/23$0.1500
06/30/23$0.1500
03/31/23$0.1500
2022
$0.860012/30/22$0.1500
09/30/22$0.1500
07/12/22$0.2800
03/31/22$0.2800
2021
$1.120012/31/21$0.2800
09/30/21$0.2800
06/30/21$0.2800
03/31/21$0.2800
2020
$1.120012/31/20$0.2800
09/30/20$0.2800
06/30/20$0.2800
03/31/20$0.2800
2019
$1.100012/31/19$0.2800
09/30/19$0.2800
06/28/19$0.2700
03/29/19$0.2700
2018
$1.040012/31/18$0.2700
09/28/18$0.2700
06/29/18$0.2500
03/29/18$0.2500
2017
$0.980012/29/17$0.2500
09/29/17$0.2500
06/29/17$0.2400
03/30/17$0.2400
2016
$0.940012/29/16$0.2400
09/29/16$0.2400
06/29/16$0.2300
03/30/16$0.2300
2015
$0.880012/29/15$0.2300
09/29/15$0.2300
06/29/15$0.2100
03/30/15$0.2100
2014
$0.780012/30/14$0.2100
09/29/14$0.2100
06/27/14$0.1800
03/28/14$0.1800
2013
$0.360012/30/13$0.1800
09/27/13$0.1800
EHC Stock Splits
1 stock split
10/26/065:1 split
EHC SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
10/31/25 | 09/30/25 | 10-Q | |
08/06/25 | 06/30/25 | 10-Q | |
05/01/25 | 03/31/25 | 10-Q | |
02/28/25 | 12/31/24 | Unknown | |
11/01/24 | 09/30/24 | 10-Q | |
08/06/24 | 06/30/24 | 10-Q | |
05/02/24 | 03/31/24 | 10-Q | |
02/28/24 | 12/31/23 | 10-K | |
11/01/23 | 09/30/23 | 10-Q | |
08/04/23 | 06/30/23 | 10-Q | |
05/03/23 | 03/31/23 | 10-Q | |
02/27/23 | 12/31/22 | 10-K | |
11/02/22 | 09/30/22 | 10-Q | |
08/04/22 | 06/30/22 | 10-Q | |
05/03/22 | 03/31/22 | 10-Q | |
02/25/22 | 12/31/21 | 10-K | |
11/02/21 | 09/30/21 | 10-Q | |
08/03/21 | 06/30/21 | 10-Q | |
05/04/21 | 03/31/21 | 10-Q | |
02/26/21 | 12/31/20 | 10-K | |
11/02/20 | 09/30/20 | 10-Q | |
07/31/20 | 06/30/20 | 10-Q | |
05/11/20 | 03/31/20 | 10-Q | |
02/27/20 | 12/31/19 | 10-K | |
10/31/19 | 09/30/19 | 10-Q | |
07/31/19 | 06/30/19 | 10-Q | |
05/01/19 | 03/31/19 | 10-Q | |
02/27/19 | 12/31/18 | 10-K | |
10/31/18 | 09/30/18 | 10-Q | |
08/02/18 | 06/30/18 | 10-Q | |
05/02/18 | 03/31/18 | 10-Q | |
02/28/18 | 12/31/17 | 10-K | |
10/31/17 | 09/30/17 | 10-Q | |
08/02/17 | 06/30/17 | 10-Q | |
04/28/17 | 03/31/17 | 10-Q | |
02/22/17 | 12/31/16 | 10-K | |
10/28/16 | 09/30/16 | 10-Q | |
07/29/16 | 06/30/16 | 10-Q | |
04/28/16 | 03/31/16 | 10-Q | |
02/25/16 | 12/31/15 | 10-K | |
10/29/15 | 09/30/15 | 10-Q | |
07/30/15 | 06/30/15 | 10-Q | |
05/01/15 | 03/31/15 | 10-Q | |
03/02/15 | 12/31/14 | 10-K | |
10/28/14 | 09/30/14 | 10-Q | |
07/29/14 | 06/30/14 | 10-Q | |
04/29/14 | 03/31/14 | 10-Q | |
02/20/14 | 12/31/13 | 10-K | |
10/29/13 | 09/30/13 | 10-Q | |
07/30/13 | 06/30/13 | 10-Q | |
04/26/13 | 03/31/13 | 10-Q | |
02/19/13 | 12/31/12 | 10-K | |
10/26/12 | 09/30/12 | 10-Q | |
07/27/12 | 06/30/12 | 10-Q | |
05/01/12 | 03/31/12 | 10-Q | |
02/23/12 | 12/31/11 | 10-K | |
11/04/11 | 09/30/11 | 10-Q | |
08/04/11 | 06/30/11 | 10-Q | |
05/02/11 | 03/31/11 | 10-Q | |
02/24/11 | 12/31/10 | 10-K | |
11/03/10 | 09/30/10 | 10-Q | |
08/05/10 | 06/30/10 | 10-Q | |
05/05/10 | 03/31/10 | 10-Q | |
02/23/10 | 12/31/09 | 10-K | |
11/04/09 | 09/30/09 | 10-Q | |
08/05/09 | 06/30/09 | 10-Q | |
05/06/09 | 03/31/09 | 10-Q | |
02/24/09 | 12/31/08 | 10-K | |
11/05/08 | 09/30/08 | 10-Q | |
08/06/08 | 06/30/08 | 10-Q | |
05/07/08 | 03/30/08 | Unknown | -- |
02/26/08 | 12/31/07 | 10-K | |
11/06/07 | 09/30/07 | 10-Q | |
08/08/07 | 06/30/07 | 10-Q | |
05/09/07 | 03/31/07 | 8-K | |
03/01/07 | 12/31/06 | 10-K | |
11/09/06 | 09/30/06 | 10-Q | |
08/14/06 | 06/30/06 | NT 10-Q | |
05/15/06 | 03/31/06 | NO ACT | |
03/29/06 | 12/31/05 | NT 10-K | |
11/09/06 | 09/30/05 | 10-Q | |
08/14/06 | 06/30/05 | 10-Q | |
05/15/06 | 03/30/05 | 10-Q | |
12/31/02 | 12/31/02 | NT 10-K | |
11/14/02 | 09/30/02 | 10-Q | |
08/14/02 | 06/30/02 | 10-Q | |
05/10/02 | 03/30/02 | 10-Q | |
03/27/02 | 12/31/01 | 10-K | |
11/13/01 | 09/30/01 | 10-Q | |
08/10/01 | 06/30/01 | 10-Q | |
05/15/01 | 03/30/01 | 10-Q | |
12/02/05 | 12/31/00 | 10-K | |
03/30/01 | 12/31/00 | 10-K | |
11/14/00 | 09/30/00 | 10-Q | |
07/26/00 | 06/30/00 | 10-Q | |
05/15/00 | 03/30/00 | 10-Q |