Encompass Health (EHC) Stock Price, News & Analysis

Company Overview

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states. Headquartered in Birmingham, Alabama, Encompass Health has built a reputation for integrating clinical expertise with data‐driven care models, collaborating with referring physicians, hospitals and payers to optimize patient outcomes and manage overall costs. Its multidisciplinary approach emphasizes early discharge planning, community reintegration and ongoing continuity of care.

Under the leadership of President and Chief Executive Officer Mark Tarr and Chief Financial Officer William Wellman, Encompass Health continues to invest in facility expansion, telehealth initiatives and digital health platforms to enhance care coordination and patient engagement. The company’s strategic priorities include strengthening partnerships with acute‐care providers, expanding its home health footprint and leveraging clinical analytics to streamline operations and improve quality metrics. With a focus on innovation and evidence‐based practices, Encompass Health aims to address the growing demand for rehabilitation and home‐based services driven by an aging population and evolving payment models.

Key Stats

• Today's Range: $121.98 to $123.87
• 50-Day Range: $109.46 to $126.96
• 52-Week Range: $87.85 to $127.86
• Volume: 713,492 shs
• Average Volume: 607,535 shs
• Market Capitalization: $12.29 billion
• P/E Ratio: 23.88
• Dividend Yield: 0.62%
• Price Target: $139.86
• Consensus Rating: Buy

Encompass Health Stock Analysis - MarketRank™

Encompass Health scored higher than 97% of companies evaluated by MarketBeat, and ranked 31st out of 952 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: 3.7 / 5
• Analyst Rating: Buy

Consensus Rating

Encompass Health has received a consensus rating of Buy. The company's average rating score is 3.11, and is based on 8 buy ratings, no hold ratings, and no sell ratings.

Upside Potential

Encompass Health has a consensus price target of $139.86, representing about 14.6% upside from its current price of $122.02.

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: 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 23.88, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 231.35.

Price to Earnings Ratio vs. Sector

The P/E ratio of Encompass Health is 23.88, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 86.05.

Price to Earnings Growth Ratio

Encompass Health has a PEG Ratio of 2.15. 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: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.47% 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 increased by 13.18%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Encompass Health has a dividend yield of 0.62%, 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 14.87%. 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 14.39% 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

1.47% 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 increased by 13.18%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.6 / 5
• News Sentiment: 0.64

News Sentiment

Encompass Health has a news sentiment score of 0.64. 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 lower news sentiment than the 0.77 average news sentiment score of Medical companies.

News Coverage This Week

MarketBeat has tracked 10 news articles for Encompass Health this week, compared to 17 articles on an average week.

Search Interest

10 people have searched for EHC on MarketBeat in the last 30 days. This is an increase of 25% compared to the previous 30 days.

MarketBeat Follows

3 people have added Encompass Health to their MarketBeat watchlist in the last 30 days. This is an increase of 50% 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 $126,062.00 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 start of the year. Since then, EHC shares have increased by 32.1% and is now trading at $122.02.

How were Encompass Health's earnings last quarter?

Encompass Health Corporation (NYSE:EHC) posted its quarterly earnings data on Wednesday, March, 16th. The company reported $0.93 earnings per share for the quarter. The business earned $136.30 million during the quarter. Encompass Health had a net margin of 9.22% and a trailing twelve-month return on equity of 17.83%.

Is Encompass Health buying back stock?

Encompass Health's board approved a stock repurchase plan on Wednesday, July 24th 2024, which allows the company to repurchase $500,000,000 in shares, according to EventVestor. This means that the company could buy up to 5.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Does Encompass Health have any subsidiaries?

Encompass Health subsidiaries include these companies: 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?

Top institutional investors of Encompass Health include Congress Asset Management Co. (0.61%), Nilsine Partners LLC (0.03%), BDF Gestion (0.02%) and Guided Capital Wealth Management LLC (0.02%). Insiders that own company stock include Mark J Tarr, Douglas E Coltharp, John Patrick Darby, Andrew L Price, Patrick William Tuer, 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

• Last Earnings: 3/16/2022
• Record date for 7/15 Dividend: 7/01/2025
• Ex-Dividend for 7/15 Dividend: 7/01/2025
• Dividend Payable: 7/15/2025
• Record date for 10/15 Dividend: 10/01/2025
• Ex-Dividend for 10/15 Dividend: 10/01/2025
• Today: 10/11/2025
• Dividend Payable: 10/15/2025
• Next Earnings (Estimated): 10/29/2025
• 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 Price Target for Encompass Health: $139.86
• High Price Target: $160.00
• Low Price Target: $125.00
• Potential Upside/Downside: +14.6%
• Consensus Rating: Buy
• Rating Score (0-4): 3.11
• Research Coverage: 9 Analysts

Profitability

• EPS (Trailing Twelve Months): $5.11
• Trailing P/E Ratio: 23.88
• Forward P/E Ratio: 25.42
• P/E Growth: 2.14
• Net Income: $455.70 million
• Net Margins: 9.22%
• Pretax Margin: 15.18%
• Return on Equity: 17.83%
• Return on Assets: 7.68%

Debt

• Debt-to-Equity Ratio: 0.76
• Current Ratio: 1.06
• Quick Ratio: 1.06

Sales & Book Value

• Annual Sales: $5.37 billion
• Price / Sales: 2.29
• Cash Flow: $7.55 per share
• Price / Cash Flow: 16.16
• Book Value: $27.72 per share
• Price / Book: 4.40

Miscellaneous

• Outstanding Shares: 100,720,000
• Free Float: 98,710,000
• Market Cap: $12.29 billion
• Optionable: Optionable
• Beta: 0.93