Encompass Health Corp

Encompass Health Corp (EHC) Stock Analysis

$120.850

+1.293 (+1.07%)At close

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High
121.660
Open
120.430
VWAP
120.50
Vol
887.89K
Mkt Cap
8.64B
Low
118.990
Amount
106.99M
EV/EBITDA, TTM
9.06

Encompass Health Corporation is a provider of inpatient rehabilitation services. The Company provides specialized rehabilitative treatment, using technology and intensive therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability. It operates hospitals in approximately 39 states and Puerto Rico, with concentrations in Florida and Texas. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver patient care services. It offers neurological, spinal & brain-related rehabilitation, which include brain injury rehabilitation, multiple trauma rehabilitation, neurological rehabilitation, spasticity management, spinal cord injury rehabilitation and stroke rehabilitation. It also offers orthopedic & joint-related rehabilitation, which includes amputee rehabilitation, chronic condition management, hip rehabilitation and orthopedic rehabilitation.

AI analysis of Encompass Health Corp (EHC)

buy

Encompass Health Corp is a good buy right now due to its current price of $120.85, which is significantly below the average analyst price target of $144, indicating a potential upside of 19%. Additionally, the company has shown a strong financial performance with a gross margin of 90.20% and a year-to-date change of +13.61%, reflecting robust operational efficiency and growth. However, there is a risk from insider selling, as the CFO sold 18,869 shares, which may indicate some caution among executives.

Valuation Metrics

The current forward P/E ratio for Encompass Health Corp (EHC) is 19.96, compared to its 5-year average forward P/E of 19.21.

Forward P/E

Fair
5Y Average P/E
19.21
Current P/E
19.96
Overvalued
21.30
Undervalued
17.11

Forward EV/EBITDA

Undervalued
5Y Average EV/EBITDA
10.60
Current EV/EBITDA
9.06
Overvalued
11.89
Undervalued
9.32

Forward P/S

Fair
5Y Average P/S
1.49
Current P/S
1.70
Overvalued
1.74
Undervalued
1.24

Alphio AI Price Scenarios for EHC

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%EHC

$164.93

Scenario price

B

Base

Base · 50%EHC

$142.72

Scenario price

B

Bear

Bear · 25%EHC

$139.75

Scenario price

Whales holding EHC

L

Lee, Danner & Bass, Inc.

+ HoldingEHC

+4.02%

3M Return

L

Leeward Investments, LLC

+ HoldingEHC

+1.56%

3M Return

R

Reinhart Partners, LLC

+ HoldingEHC

+0.69%

3M Return

N

Nippon Life Global Investors Americas, Inc.

+ HoldingEHC

+0.51%

3M Return

T

Trillium Asset Management, LLC

+ HoldingEHC

+0.14%

3M Return

S

Scout Investments, Inc.

+ HoldingEHC

-0.71%

3M Return

Events Timeline

2026-08-05 (ET)

16:30:00

Company Reports Q2 Revenue of $1.6B, Beating Expectations

16:30:00

Raises FY26 Revenue Outlook to $6.41B-$6.49B

2026-07-23 (ET)

08:30:00

Encompass Health Increases Quarterly Dividend to $0.21

2026-05-29 (ET)

08:40:00

Encompass Health to Build 36-Bed Rehab Hospital in West Virginia

2026-05-11 (ET)

16:40:00

Encompass Health to Build 50-Bed Rehab Hospital in Idaho

News

EHC FAQ — answered by Alphio AI

Encompass Health Corporation is a provider of inpatient rehabilitation services. The Company provides specialized rehabilitative treatment, using technology and intensive therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability. It operates hospitals in approximately 39 states and Puerto Rico, with concentrations in Florida and Texas. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver patient care services. It offers neurological, spinal & brain-related rehabilitation, which include brain injury rehabilitation, multiple trauma rehabilitation, neurological rehabilitation, spasticity management, spinal cord injury rehabilitation and stroke rehabilitation. It also offers orthopedic & joint-related rehabilitation, which includes amputee rehabilitation, chronic condition management, hip rehabilitation and orthopedic rehabilitation. It operates in the Healthcare sector (SERVICES-HOSPITALS industry).

Encompass Health Corp is a good buy right now due to its current price of $120.85, which is significantly below the average analyst price target of $144, indicating a potential upside of 19%. Additionally, the company has shown a strong financial performance with a gross margin of 90.20% and a year-to-date change of +13.61%, reflecting robust operational efficiency and growth. However, there is a risk from insider selling, as the CFO sold 18,869 shares, which may indicate some caution among executives.

This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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