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Encompass Health Corporation

EHC

Last
$123.33
Day
+0.6%
1y
-0.5%
5y
+66.9%
52w
-4.3%
SPY YTD
+13.3%
XLV
+8.1%
Earnings
2026-10-2818d
EMA 21
122.01
EMA 50
119.88
EMA 200
112.61
20d high
-2.4%
5y high
-4.3%
5y range
94th
Website · 29,699 employees · United States

Positions held

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Score
17
Hold
watch
Signal
Neutral
Target
$131.62
Stop
$118.00
Stop distance
4.3%
Target vs last
+6.7%

Bull / bear case

Site-generated summary from fundamentals, news, and score — not investment advice. As of 2026-10-08.

Bull case
  • Encompass Health Corporation operates in a growing healthcare sector, focusing on rehabilitation services which are increasingly in demand as the population ages.
  • The company's revenue grew by 9.6% year-over-year, reaching $5.9 billion in 2025.
  • Encompass Health's net income for 2026-Q2 was $153.9 million, reflecting strong operational performance.
Bear case
  • The company's high debt-to-equity ratio of 82.121 may pose risks in a rising interest rate environment.
  • Operating margin decreased slightly to 18.05% in 2026-Q2 from 19.01% in 2026-Q1.
  • The stock has a trailing P/E ratio of 20.85, which may be considered high compared to industry peers.

Fundamentals

Market cap$12.09BEnterprise value$15.69BTrailing P/E20.49Forward P/E18.35
PEG0.41Price / book4.66Beta0.60Dividend yield0.69%
Revenue growth9.6%Earnings growth10.8%Gross margin43.9%Operating margin18.1%
Profit margin10.0%ROE25.0%ROA9.8%Debt / equity0.82
Current ratio1.19Free cash flow$229.92MAnalyst recommendationstrong_buyMean target$148.17
52w high$127.9952w low$92.77

Quarterly

2026-Q22026-Q12025-Q42025-Q32025-Q2
Revenue$1.6B$1.6B$1.5B$1.5B$1.5B
Op margin18.1%19.0%18.3%16.5%17.8%
Net income$154M$195M$146M$127M$142M
Gross margin95.9%95.9%95.8%95.6%43.0%
Gross profit$1.5B$1.5B$1.5B$1.4B$627M
Operating income$288M$302M$283M$244M$259M
  • Revenue +1% vs prior quarter ($1.6B vs $1.6B).
  • Gross margin 95.9% (was 96% prior quarter).

Yearly (6y)

20252024202320222021
Revenue$5.9B$5.4B$4.8B$4.3B—
Op margin17.7%16.1%15.2%14.5%—
Net income$566M$456M$352M$271M—
Gross margin95.7%41.6%41.3%40.3%—
Gross profit$5.7B$2.2B$2.0B$1.8B—
Operating income$1.1B$865M$732M$630M—
Headline scan

No flags

• No distress or material-risk keywords in recent headlines (keyword scan only — not a guarantee).

News

EHC · daily-0.2% over 13 sessions
Close EMA21 EMA50 EMA200
118.03120.00121.97123.94125.912026-092026-092026-092026-092026-102026-102026-10
Quarterly · revenue, net income, margins
Revenue Net income Gross margin Op margin
$0M$399M$799M$1.2B$1.6B0%48%96%2025-Q22025-Q32025-Q42026-Q12026-Q2