Enhabit, Inc.

EHAB

Services-Home Health Care Services

Mkt Cap

$455.4M

PE

-5.49

Debt

$572.3M

Cash

$39.4M

EV

$988.3M

FCF

$31.4M

Market Cap

$455.4M

P/E Ratio

-5.49

Debt

$572.3M

Cash

$39.4M

EV

$988.3M

FCF

$31.4M

Charts data: {"Earnings":[{"time":"2020-12-30","value":75000000},{"time":"2021-12-30","value":111100000},{"time":"2022-12-30","value":-40400000},{"time":"2023-12-30","value":-80500000}],"Sales":[{"time":"2020-12-30","value":1078200000},{"time":"2021-12-30","value":1106600000},{"time":"2022-12-30","value":1071100000},{"time":"2023-12-30","value":1046300000}],"Net Margins":[{"time":"2020-12-30","value":0.06956037840845854},{"time":"2021-12-30","value":0.10039761431411531},{"time":"2022-12-30","value":-0.037718233591634766},{"time":"2023-12-30","value":-0.07693778075121858}],"Assets":[{"time":"2021-12-30","value":1720000000},{"time":"2022-12-30","value":1526800000},{"time":"2023-12-30","value":1433600000}],"Stockholders Equity":[{"time":"2020-12-30","value":1389800000},{"time":"2021-12-30","value":1478300000},{"time":"2022-12-30","value":770100000},{"time":"2023-12-30","value":696700000}],"ROE":[{"time":"2020-12-30","value":0.05396459922290977},{"time":"2021-12-30","value":0.07515389298518568},{"time":"2022-12-30","value":-0.05246071938709258},{"time":"2023-12-30","value":-0.11554471077938855}],"ROA":[{"time":"2021-12-30","value":0.08604651162790698},{"time":"2022-12-30","value":-0.007466596803772596},{"time":"2023-12-30","value":-0.033203125}]}

Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. As of December 31, 2022, it operated in 252 home health agencies and 105 hospice agencies across 23 states. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was incorporated in 2014 and is based in Dallas, Texas.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22

DCF

Discounted Cash Flow Valuation of Enhabit, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$31.4M	$15.81M	$7.961M	$4.008M	$2.018M	$1.016M	$511.7K	$257.6K	$129.7K	$65.32K	$32.89K	$328.9K
DCF		$13.75M	$6.019M	$2.636M	$1.154M	$505.2K	$221.2K	$96.86K	$42.41K	$18.57K	$8.13K	$81.3K
Value	$24.53M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 83%

Earnings Stability -80%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	7%	10%	-3.8%	-7.7%	-8%
ROA	-	8.6%	-0.75%	-3.3%	-3.4%
ROE	5.4%	7.5%	-5.2%	-12%	-12%

What is the average Net Margin?

The average Net Margin over the past 5 years is -5.73%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -3.92%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -2.03%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.57%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -8.4%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -6.31%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	8.30	12.81	18.23
Debt Equity	-	0.01	0.79	0.83	0.82
MIN
Graham Stability	-	-	-	-170%	-170%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 18.23.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.50.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.66.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2020	12-2022	Trend
Revenue	-1%	-2.3%	-2.5%
Net Income	-	-	-
Stockholders Equity	-21%	-9.5%	-7.9%
FCF	27%	-38%	-240%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.47%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -7.95%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -243.44%.