Encompass Health Corp

  • Earnings Score
  • Moat Score
  • Safety Score
  • Market Cap $10.06B
  • PE 24
  • Debt $2.58B
  • Cash $198.90M
  • EV $12.44B
  • FCF $269.50M

Earnings

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Sales & Net Margins

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Earnings$419.80M
EBIT$713.00M
ROE16%
ROA11%
FCF$269.50M
Equity$2.67B
Growth Stability77%
PE23.96
PEG8.03
PB3.77
P/FCF37.33
P/S1.93
Price/Cash0.02
Debt/Equity0.97
Debt/FCF9.56
Net Margins8%
Op. Margins14%
Earnings CAGR6%
Sales Growth YoY12%
Sales Growth QoQ4%
Sales CAGR4%
FCF CAGR-12%
Equity CAGR14%
Earnings Stability0.55
Earnings Growth YoY27%
Earnings Growth QoQ-5%
Earnings CAGR 5Y3%
Sales CAGR 5Y1%
FCF CAGR 5Y-5%
Equity CAGR 5Y6%
Earnings CAGR 3Y-0%
Sales CAGR 3Y-0%
FCF CAGR 3Y22%
Equity CAGR 3Y4%
Market Cap$10.06B
Revenue$5.22B
Dividend Yield1%
Payout Ratio15%
Assets$6.46B
Total Debt$2.58B
Cash$198.90M
Shares Outstanding99.05M
EV12.44B
Earnings Score49%
Moat Score91%
Safety Score74%
Final Score72%
Working Capital36.5M
Current Ratio1.04
Shares Growth 3y-0%
Equity Growth QoQ8%
Equity Growth YoY24%

Assets & ROA

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Stockholders Equity & ROE

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Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. It operates in two segments: inpatient rehabilitation and home health and hospice. The Inpatient rehabilitation segment contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas. The Home health and hospital segment provides skilled home health services through agencies concentrated in the southeastern United States and Texas, which include nursing, physical, occupational, and speech therapy, social work, and hospice services.

SEC Filings

Direct access to Encompass Health Corp (EHC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2024
    • 10-Q Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2023
    • 10-K Dec 31
    • 10-Q Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2022
    • 10-K Dec 31
    • 10-Q Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31

Sector Comparison

How does Encompass Health Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Encompass Health Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%
Stability 55%
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Encompass Health Corp Discounted Cash Flow

Fully customizable DCF calculator online for Encompass Health Corp.

= $1.3B
012345678910TV
fcf$270M$238M$211M$186M$165M$146M$129M$114M$101M$89M$79M$786M
DCF$217M$174M$140M$112M$90M$73M$58M$47M$38M$30M$303M
Value$1.3B

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.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023TTM
Net Margins9%6%7%6%7%8%6%8%6%7%8%
ROA-11%13%12%11%10%9%10%10%10%11%
ROE-23%27%18%19%21%14%17%15%16%16%

Safety and Stability

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.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023TTM
Debt over FCF-8.97.055.984.9511.6510.6519.3222.7410.139.56
Debt over Equity3.444.073.251.811.611.811.671.391.521.20.97
Growth Stability---100%100%100%94%100%77%100%77%

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.

Years12/201412/201512/201612/201712/201812/201912/202012/202112/202212/2023CAGR 5Y
Revenue YoY growth-31%17%7%8%8%1%10%-15%10%1%
Earnings YoY growth--16%36%4%14%23%-21%45%-34%30%3%
Equity YoY growth-26%19%53%9%9%16%20%-23%23%6%
FCF YoY growth-30%20%1%18%-48%17%-45%-28%120%-5%