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Encompass Health Corporation (EHC) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Encompass Health Corporation

EHCMarket cap $12BPrice $122.5

Country🇺🇸United States

SectorHealthcare

IndustryHealthcare Services

Runs the largest network of inpatient rehabilitation hospitals in the US, helping stroke and injury patients relearn how to walk, talk, and live independently. Aging demographics keep beds full and margins strong.

In Bastion Portfolios?

52W Return-1%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+11%7

Revenue Forecast

Rev CAGR (1y)+9%6

Rev CAGR (3y)+8%6

Rev CAGR (5y)+9%7

Earnings Forecast

EPS Growth Y+1+12%7

EPS Growth Y+2+10%7

EPS Growth Y+3+6%6

Quality

Margins

EBIT Margin18%7

Net Income Margin10%6

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA1.85

Efficiency

ROE25%9

ROA12%9

Earnings Stability77

GEAR+STRONG83

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)194

P/E Ratio (Forward 3y)174

P/BV4.73

EV Multiples

EV/EBITDA Fwd115

EV/EBIT Fwd155

Yield

Free Cash Flow Yield3.4%5

Dividend Yield0.7%2

Momentum

Short term

1 month return+2%9

3 month return+11%9

YTD return+16%7

Mid term

Price vs 52wHigh96%10

1 year return-1%5

Long term

3 year return+92%7

5 year return+128%8

Risk Shield

Price Risk

Beta0.76

Volatility29%7

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield3.4%5

Quality

ROCE18%8

Earnings Stability77

Net Debt/EBITDA1.85

02Growth

Is it actually growing, and how fast?

EHCEncompass Health

Revenue FY25$5.9B

GROWTH RATING↗

AVERAGE62 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+10%7

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 10%/yr vs revenue 8%/yr).

WATCH

A mid-pack grower, ahead of 62% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 11%/yr over the last 3 years and is set to keep growing around 8%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG89 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+2%9

3-month return+11%9

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high96%10

1-year return-1%5

3-year return+92%7

5-year return+128%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +92% over three years and +128% over five, ahead of 70% of the market.

It's down 0.8% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+2%), over three months (+11%) and so far this year (+16%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Encompass Health. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

EHCEncompass Health

Revenue FY25$5.9B

GROWTH RATING↗

AVERAGE62 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+9%7

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+10%7

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

The runway holds up: revenue is set to grow 9%/yr over five years.7/10

Earnings are set to grow in step with sales (EPS about 10%/yr vs revenue 8%/yr).

WATCH

A mid-pack grower, ahead of 62% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 11%/yr over the last 3 years and is set to keep growing around 8%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG89 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+2%9

3-month return+11%9

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high96%10

1-year return-1%5

3-year return+92%7

5-year return+128%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +92% over three years and +128% over five, ahead of 70% of the market.

It's down 0.8% over the past year, now sitting right at its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+2%), over three months (+11%) and so far this year (+16%).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally, and the stock trades near its highs. The market is fully behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Encompass Health. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community