Encompass Health (EHC) Stock Price, News & Analysis

Company Overview

Encompass Health Corporation (NYSE:EHC) is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions. Services typically include physical, occupational and speech therapy, rehabilitation nursing, physician oversight, case management and related clinical support.

Encompass Health’s roots date to its founding as HealthSouth in 1984. The company adopted the Encompass Health name following the separation of its home health and hospice operations, which became Enhabit in 2022. Encompass Health is headquartered in Birmingham, Alabama, and its rehabilitation network serves patients across communities in the United States.

Mark Tarr serves as Encompass Health’s president and chief executive officer. The company focuses on helping patients regain mobility, independence and daily living skills while transitioning from acute hospital care to home or other community-based settings.

Key Stats

• Today's Range: $120.69 to $122.60
• 50-Day Range: $106.98 to $125.78
• 52-Week Range: $92.77 to $127.99
• Volume: 649,322 shs
• Average Volume: 767,027 shs
• Market Capitalization: $12.00 billion
• P/E Ratio: 19.81
• Dividend Yield: 0.69%
• Price Target: $146.83
• Consensus Rating: Buy

Encompass Health Stock Analysis - MarketRank™

Encompass Health scored higher than 95% of companies evaluated by MarketBeat, and ranked 17th out of 904 stocks in the healthcare sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.2 / 5
• Analyst Rating: Buy

Consensus Rating

Encompass Health has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 strong buy rating, 6 buy ratings, 1 hold rating, and no sell ratings.

Upside Potential

Encompass Health has a consensus price target of $146.83, representing about 20.7% upside from its current price of $121.63.

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: 8.55%

Earnings Growth

Earnings for Encompass Health are expected to grow by 8.55% in the coming year, from $6.08 to $6.60 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Encompass Health is 19.81, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 39.13.

Price to Earnings Ratio vs. Sector

The P/E ratio of Encompass Health is 19.81, which means that it is trading at a less expensive P/E ratio than the Healthcare sector average P/E ratio of about 273.82.

Price to Earnings Growth Ratio

Encompass Health has a PEG Ratio of 2.45. 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 3.80. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.35% 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 3.71, 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 1.04%, indicating that investor sentiment is improving.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Encompass Health has a dividend yield of 0.63%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Encompass Health has only been increasing its dividend for 2 years.

Dividend Coverage

The dividend payout ratio of Encompass Health is 13.68%. 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 12.73% next year. This indicates that Encompass Health will be able to sustain or increase its dividend.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.93

News Sentiment

Encompass Health has a news sentiment score of 0.93. 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 news sentiment score is similar to the average news sentiment of Healthcare companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Encompass Health this week, compared to 5 articles on an average week.

MarketBeat Follows

4 people have added Encompass Health to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Encompass Health insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $23,434,845.00 in company stock.

Percentage Held by Insiders

1.80% 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.

Company Calendar

• Record date for 7/15 Dividend: 7/01/2026
• Ex-Dividend for 7/15 Dividend: 7/01/2026
• Dividend Payable: 7/15/2026
• Last Earnings: 8/05/2026
• Today: 9/12/2026
• Record date for 10/15 Dividend: 10/01/2026
• Ex-Dividend for 10/15 Dividend: 10/01/2026
• Dividend Payable: 10/15/2026
• Next Earnings (Estimated): 10/28/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Healthcare
• Industry: Healthcare Providers & Services
• Sub-Industry: Healthcare Facilities
• Current Symbol: NYSE:EHC
• CIK: 785161
• Web: www.encompasshealth.com
• Phone: (205) 967-7116
• Fax: 205-969-4719
• Employees: 42,000
• Year Founded: 1984

Price Target and Rating

• Average Price Target for Encompass Health: $146.83
• High Price Target: $155.00
• Low Price Target: $140.00
• Potential Upside/Downside: +20.7%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 8 Analysts

Profitability

• EPS (Trailing Twelve Months): $6.14
• Trailing P/E Ratio: 19.81
• Forward P/E Ratio: 20.00
• P/E Growth: 2.45
• Net Income: $566.20 million
• Net Margins: 10.01%
• Pretax Margin: 16.56%
• Return on Equity: 18.08%
• Return on Assets: 8.22%

Debt

• Debt-to-Equity Ratio: 0.76
• Current Ratio: 1.19
• Quick Ratio: 1.19

Sales & Book Value

• Annual Sales: $6.21 billion
• Price / Sales: 1.93
• Cash Flow: $8.94 per share
• Price / Cash Flow: 13.61
• Book Value: $31.98 per share
• Price / Book: 3.80

Miscellaneous

• Outstanding Shares: 98,653,000
• Free Float: 96,877,000
• Market Cap: $12.00 billion
• Optionable: Optionable
• Beta: 0.75