Encompass Health (EHC) Stock Price, News & Analysis

Company Overview

Encompass Health Corporation, trading on the NYSE under the symbol EHC, is a leading provider of post-acute healthcare services in the United States. Founded in 1984 as HealthSouth Corporation, the company rebranded to Encompass Health in 2018 to better reflect its comprehensive continuum of care. Headquartered in Birmingham, Alabama, Encompass Health has grown through both organic expansion and strategic acquisitions to establish one of the nation’s largest inpatient rehabilitation and home health networks.

The company operates two primary segments: inpatient rehabilitation hospitals and home health and hospice services. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from neurological, orthopedic, cardiac, and other complex medical conditions. Through its home health and hospice agencies, Encompass Health extends care into patients’ homes, delivering skilled nursing, therapy, and supportive services that facilitate recovery, maximize independence, and provide comfort and dignity at end of life.

Encompass Health serves communities across more than 30 states, operating over 130 inpatient rehabilitation hospitals and nearly 300 home health and hospice agencies. Its integrated model enables seamless transitions between hospital and home-based care, supporting measurable outcomes such as improved functional status and reduced hospital readmissions. The company’s clinical teams collaborate with referring physicians, skilled nursing facilities, and long-term care providers to tailor individualized care plans designed to meet each patient’s unique needs.

Under the leadership of President and Chief Executive Officer Bill Best, Encompass Health emphasizes a patient-centric culture driven by data analytics, evidence-based protocols, and continuous quality improvement. Guided by a board of experienced healthcare executives, the company continues to invest in staff training, digital health technologies, and facility enhancements. By focusing on specialized rehabilitation and post-acute care, Encompass Health aims to deliver high-quality outcomes and cost-effective solutions for patients, families, and payers alike.

Key Stats

• Today's Range: $117.63 to $119.51
• 50-Day Range: $113.33 to $122.60
• 52-Week Range: $82.74 to $123.13
• Volume: 400,752 shs
• Average Volume: 703,217 shs
• Market Capitalization: $12.00 billion
• P/E Ratio: 24.60
• Dividend Yield: 0.57%
• Price Target: $127.00
• Consensus Rating: Buy

Encompass Health Stock Analysis - MarketRank™

Encompass Health scored higher than 97% of companies evaluated by MarketBeat, and ranked 142nd out of 2,814 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 3.22, and is based on 7 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Encompass Health has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 10.00%

Earnings Growth

Earnings for Encompass Health are expected to grow by 10.00% in the coming year, from $4.80 to $5.28 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Encompass Health is 24.60, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.63.

Price to Earnings Ratio vs. Sector

The P/E ratio of Encompass Health is 24.60, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 27.42.

Price to Earnings Growth Ratio

Encompass Health has a PEG Ratio of 2.41. 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 4.29. 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

0.85% 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, 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 3.88%, indicating that investor sentiment is improving.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Encompass Health has a dividend yield of 0.57%, 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 14.05%. 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 12.88% 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

0.85% 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, 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 3.88%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.3 / 5
• News Sentiment: 1.13

News Sentiment

Encompass Health has a news sentiment score of 1.13. 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 0.54 average news sentiment score of Medical companies.

News Coverage This Week

MarketBeat has tracked 6 news articles for Encompass Health this week, compared to 10 articles on an average week.

Search Interest

Only 4 people have searched for EHC on MarketBeat in the last 30 days. This is a decrease of -60% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 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 $16,034,082.00 in company stock.

Percentage Held by Insiders

Only 2.00% 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 $92.35 at the beginning of the year. Since then, EHC stock has increased by 28.9% and is now trading at $119.04.

How were Encompass Health's earnings last quarter?

Encompass Health Corporation (NYSE:EHC) posted its earnings results on Thursday, April, 24th. The company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.18. The business's revenue was up 10.6% compared to the same quarter last year.
Read the conference call transcript.

Is Encompass Health buying back stock?

Encompass Health's board approved a stock buyback program on Wednesday, July 24th 2024, which allows the company to buy back $500,000,000 in outstanding shares, according to EventVestor. This means that the company could reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its stock is 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 Central Pacific Bank Trust Division. Insiders that own company stock include Mark J Tarr, Douglas E Coltharp, John Patrick Darby, Andrew L Price, Greg D Carmichael and Elissa Joy Charbonneau.
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.

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

• Record date for 4/15 Dividend: 4/01/2025
• Ex-Dividend for 4/15 Dividend: 4/01/2025
• Dividend Payable: 4/15/2025
• Last Earnings: 4/24/2025
• Record date for 7/15 Dividend: 7/01/2025
• Ex-Dividend for 7/15 Dividend: 7/01/2025
• Today: 7/04/2025
• Dividend Payable: 7/15/2025
• Next Earnings (Estimated): 8/04/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Medical
• Industry: MED - OUTP/HM CRE
• Sub-Industry: Health Care Facilities
• Current Symbol: NYSE:EHC
• CIK: 785161
• Web: www.healthsouth.com
• Phone: (205) 967-7116
• Fax: 205-969-4719
• Employees: 40,000
• Year Founded: 1984

Price Target and Rating

• Average Stock Price Target: $127.00
• High Stock Price Target: $135.00
• Low Stock Price Target: $100.00
• Potential Upside/Downside: +6.7%
• Consensus Rating: Buy
• Rating Score (0-4): 3.22
• Research Coverage: 9 Analysts

Profitability

• EPS (Trailing Twelve Months): $4.84
• Trailing P/E Ratio: 24.60
• Forward P/E Ratio: 24.80
• P/E Growth: 2.41
• Net Income: $455.70 million
• Net Margins: 8.97%
• Pretax Margin: 14.69%
• Return on Equity: 17.63%
• Return on Assets: 7.33%

Debt

• Debt-to-Equity Ratio: 0.81
• Current Ratio: 1.06
• Quick Ratio: 1.06

Sales & Book Value

• Annual Sales: $5.37 billion
• Price / Sales: 2.23
• Cash Flow: $7.57 per share
• Price / Cash Flow: 15.73
• Book Value: $27.72 per share
• Price / Book: 4.29

Miscellaneous

• Outstanding Shares: 100,800,000
• Free Float: 98,781,000
• Market Cap: $12.00 billion
• Optionable: Optionable
• Beta: 0.88