Encompass Health (EHC) Stock Overview
Operates inpatient rehabilitation hospitals in the United States and Puerto Rico. More details
| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 6/6 |
| Financial Health | 4/6 |
| Dividends | 2/6 |
EHC Community Fair Values
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Analyst Price Targets
Top Community Narratives
US$99.17
FV
2.4% overvalued intrinsic discount7.89%
Revenue growth p.a.
16
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Encompass Health Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$101.55 |
| 52 Week High | US$127.99 |
| 52 Week Low | US$92.77 |
| Beta | 0.58 |
| 1 Month Change | -5.52% |
| 3 Month Change | -6.79% |
| 1 Year Change | -16.43% |
| 3 Year Change | 60.96% |
| 5 Year Change | 22.73% |
| Change since IPO | 1,811.53% |
Recent News & Updates
Recent updates
Analysis Article • May 06
Results: Encompass Health Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates
Investors in Encompass Health Corporation ( NYSE:EHC ) had a good week, as its shares rose 3.4% to close at US$105...
Narrative Update • Apr 27
EHC: Stable Margins And New Hospitals Will Support Future Upside
Analysts have raised their price target on Encompass Health by $3, reflecting updated views on its margin profile and valuation metrics such as projected P/E, while keeping long term fair value assumptions broadly in line. Analyst Commentary Bullish Takeaways Bullish analysts view the higher price target as better aligned with updated P/E assumptions, suggesting the stock now tracks more closely with their assessment of earnings power.Narrative Update • Apr 12
EHC: Hospital Expansion And Execution Confidence Will Support Future Upside
Analysts raised their price target on Encompass Health by $3. This reflects updated views on the company following recent research commentary.Seeking Alpha • Apr 07
Why I Think Encompass Health Can Grow Into Its Valuation
Summary Encompass Health Corporation is positioned as the largest U.S. inpatient rehabilitation hospital operator, benefiting from a proposed CMS FY 2027 payment rate increase. The CMS proposal boosts Medicare payments by 2.4%, supporting EHC’s revenue outlook, but introduces stricter operational requirements and future payment calculation uncertainties. EHC’s expansion strategy leverages strong local presence, efficient staffing, and robust hospital relationships, with planned bed additions of 500–600 per year and resilient discharge growth. Key risks include tougher Medicare Advantage insurer approvals, though EHC offsets with traditional Medicare, diversified payers, and workflow improvements via AI. Read the full article on Seeking AlphaNarrative Update • Mar 28
EHC: Hospital Expansion And Steady Profitability Assumptions Will Support Future Upside
Analysts have increased their price target on Encompass Health by $3, citing updated assumptions around revenue growth, profit margins, and the future P/E ratio that leave their overall fair value view broadly unchanged. Analyst Commentary Bullish Takeaways Bullish analysts view the $3 price target increase as a reflection of updated assumptions around revenue, margins, and future P/E that still support the current valuation framework.Narrative Update • Mar 12
EHC: Rehabilitation Expansion And Profitability Framework Will Support Future Upside Potential
Analysts have lifted their price target on Encompass Health by $3 to reflect updated assumptions on future P/E and profitability. Analyst Commentary Bullish Takeaways Bullish analysts view the higher price target as better alignment between the current P/E assumptions and what they see as the company’s earnings potential over time.Narrative Update • Feb 25
EHC: Expanded Rehabilitation Buildout Will Support Future Margin And Earnings Power
Analysts have lifted their price target on Encompass Health by $3 to reflect updated views on fair value, discount rate, growth, margins and future P/E, citing the latest Street research as support for this change. Analyst Commentary Bullish analysts point to the recent US$3 price target adjustment as a reflection of updated thinking on what they see as fair value for Encompass Health, based on refreshed views of discount rates, growth assumptions, margins and future P/E levels.Narrative Update • Feb 11
EHC: Expanded Rehabilitation Network And Strong Execution Will Support Future Momentum
Analysts have nudged their price targets on Encompass Health higher by about US$2 to roughly align with updated fair value assumptions around US$143, citing slightly adjusted expectations for revenue growth, profitability, discount rate and future P/E multiples. Analyst Commentary Bullish Takeaways Bullish analysts view the updated fair value assumption near US$143 as reasonable given their current expectations for revenue growth and profitability, which they see as broadly supportive of the latest price target move.Narrative Update • Jan 26
EHC: New Rehabilitation Builds And Share Buybacks Will Support Future Momentum
Analysts have nudged their price target on Encompass Health slightly higher to approximately US$140.33, reflecting updated assumptions for the discount rate, revenue growth, profit margin, and future P/E. Together, these factors support a modestly refined outlook on the shares.Narrative Update • Jan 12
EHC: New Rehabilitation Hospitals In Underpenetrated Markets Will Support Future Discharge Momentum
Analysts have modestly raised their price target on Encompass Health to approximately $140.33, reflecting updated views on revenue growth, profit margins and future price-to-earnings (P/E) assumptions. What's in the News Opened Encompass Health Rehabilitation Hospital of Lake Worth, a 50 bed inpatient facility offering intensive therapy, 24 hour nursing care and a range of on site services including an in house pharmacy and dialysis suite (Business expansion).Narrative Update • Dec 26
EHC: De Novo Expansion Into Underpenetrated Markets Will Drive Future Discharge Momentum
Analysts have raised their price target on Encompass Health to $150 from $140, citing expectations for continued robust discharge growth supported by the company’s de novo expansion into underpenetrated markets, efforts to improve conversion rates at existing hospitals, and the ongoing conversion of semi private beds to private beds. Analyst Commentary Analysts view the higher price target as a reflection of confidence in Encompass Health’s ability to sustain above-trend growth in discharges, supported by a deliberate expansion and optimization strategy across its inpatient rehabilitation facilities.Narrative Update • Dec 11
EHC: De Novo Expansion Into Underserved Markets Will Drive Future Discharge Momentum
Analysts have raised their price target on Encompass Health to $150 from $140, citing expectations for continued strong discharge growth. This is driven by the company’s de novo expansion into underpenetrated markets, as well as ongoing efforts to improve conversion rates and upgrade bed capacity.Narrative Update • Nov 27
EHC: Expansion Into New Markets And Private Rooms Will Drive Long-Term Momentum
Encompass Health's analyst price target has been raised by $10 to $150, reflecting analysts' confidence in the company's ongoing discharge growth and expansion strategies. Analyst Commentary Recent analyst commentary on Encompass Health highlights a range of factors shaping the company’s trajectory, offering insights on both its strengths and areas of potential concern.Narrative Update • Nov 13
EHC: Future Expansion Into New Markets Will Drive Business Momentum
Encompass Health's analyst price target has increased by $1.25 to $140.33. This reflects analysts' expectations for sustained discharge growth and successful expansion strategies.Narrative Update • Oct 30
EHC: Expanding Hospital Footprint And Bed Upgrades Will Shape Measured Outlook
Encompass Health's analyst price target has been increased by $10 to $150. Analysts cite strong discharge growth and ongoing expansion strategies as key factors supporting the upward revision.Narrative Update • Oct 15
Aging Population And Hospital Openings Will Drive Patient Demand
Encompass Health's analyst price target has increased by $1.67 to $139.08. Analysts cite the company's ongoing strong discharge growth and expansion strategies as key drivers for the upward revision.Narrative Update • Sep 20
Aging Population And Hospital Openings Will Drive Patient Demand
With both future P/E and net profit margin remaining effectively unchanged, Encompass Health’s consensus analyst price target saw only a marginal increase from $135.75 to $137.42. What's in the News The New York Times reports Encompass Health, a leading rehab hospital operator, has had incidents of patient harm and underperforms on some Medicare safety measures, notably with higher unplanned readmissions, though it excels at helping patients return home; regulatory action and disclosure appear limited.Narrative Update • Sep 05
Aging Population And Hospital Openings Will Drive Patient Demand
With both Net Profit Margin and Consensus Revenue Growth forecasts holding steady, analysts have kept their price target for Encompass Health unchanged at $135.75. What's in the News The New York Times reports that Encompass Health, a dominant for-profit rehab hospital operator, has had rare but serious incidents of patient harm and performs below average on certain Medicare safety measures, including high rates of unplanned readmissions, though it generally excels in helping patients return and stay home; federal enforcement and transparency are deemed limited (NY Times, 2025-07-15).Analysis Article • Aug 07
Encompass Health Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
NYSE:EHC 1 Year Share Price vs Fair Value Explore Encompass Health's Fair Values from the Community and select yours...Analysis Article • Jul 20
A Look At The Intrinsic Value Of Encompass Health Corporation (NYSE:EHC)
Key Insights Encompass Health's estimated fair value is US$114 based on 2 Stage Free Cash Flow to Equity Current share...Analysis Article • Jun 11
Encompass Health Corporation's (NYSE:EHC) Share Price Could Signal Some Risk
With a price-to-earnings (or "P/E") ratio of 24.3x Encompass Health Corporation ( NYSE:EHC ) may be sending bearish...
New Narrative • Aug 25
Expanding Healthcare Services And Decisive Partnerships Propel Revenue Growth And Shareholder Value
Expanding service demand through significant growth in neurological and stroke treatment areas suggests potential for future revenue increases.Shareholder Returns
| EHC | US Healthcare | US Market | |
|---|---|---|---|
| 7D | -3.2% | -0.3% | 1.2% |
| 1Y | -16.4% | 11.8% | 27.0% |
Return vs Industry: EHC underperformed the US Healthcare industry which returned 12.5% over the past year.
Return vs Market: EHC underperformed the US Market which returned 28.2% over the past year.
Price Volatility
| EHC volatility | |
|---|---|
| EHC Average Weekly Movement | 4.4% |
| Healthcare Industry Average Movement | 7.2% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.0% |
Stable Share Price: EHC has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: EHC's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 29,599 | Mark Tarr | www.encompasshealth.com |
Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence, and quality of life; medical, nursing, therapy, and ancillary services; and rehabilitative care to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. It offers services through the Medicare program to the federal government, managed care plans and private insurers, state governments, and other patients.
Encompass Health Corporation Fundamentals Summary
| EHC fundamental statistics | |
|---|---|
| Market cap | US$10.19b |
| Earnings (TTM) | US$592.20m |
| Revenue (TTM) | US$6.07b |
17.0x
P/E Ratio1.7x
P/S RatioIs EHC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EHC income statement (TTM) | |
|---|---|
| Revenue | US$6.07b |
| Cost of Revenue | US$3.43b |
| Gross Profit | US$2.64b |
| Other Expenses | US$2.05b |
| Earnings | US$592.20m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.97 |
| Gross Margin | 43.49% |
| Net Profit Margin | 9.76% |
| Debt/Equity Ratio | 67.9% |
How did EHC perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield13%
Payout RatioDoes EHC pay a reliable dividends?
See EHC dividend history and benchmarks| Encompass Health dividend dates | |
|---|---|
| Ex Dividend Date | Jul 01 2026 |
| Dividend Pay Date | Jul 15 2026 |
| Days until Ex dividend | 27 days |
| Days until Dividend pay date | 41 days |
Does EHC pay a reliable dividends?
See EHC dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/02 17:23 |
| End of Day Share Price | 2026/06/02 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Encompass Health Corporation is covered by 28 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Matthew Gillmor | Baird |
| Adam Feinstein | Barclays |
| Andrew Mok | Barclays |