Encompass Health Corporation (EHC) is a publicly traded company in the Healthcare — Medical - Care Facilities industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Encompass Health Corporation delivers a range of post-acute healthcare services across the United States, offered both in dedicated facilities and directly within patients' homes. The company's operations are divided into two primary divisions: Inpatient Rehabilitation, and Home Health and Hospice. Its Inpatient Rehabilitation division specializes in providing focused recovery treatment, available on an inpatient or outpatient basis.
Is Encompass Health Corporation stock overvalued or undervalued in 2026?
Encompass Health Corporation (EHC) trades at 19.9× earnings (P/E), below the median of the 246 healthcare companies over $2bn in Kaplio's universe. At the decade median (18.2×) $112 (-8 %); at its sector median (30.4×) $187 (+53 %).
Kaplio overview: Encompass Health Corporation
Market cap $12B · 52 weeks $94 – $128 (5 % below the high) · P/E 19.9× · 2027 expected P/E 18.3× · Dividend 0.64 % · Next earnings February 11, 2027 · expected EPS $1.60 · Closing price, Oct 28 · accounts published Oct 28.
- Valuation: P/E 19.9× (fairly priced).
- Business: ROIC 13 % (fair).
- Balance sheet: Net debt/EBITDA 1.9× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (18.2×) $112 (-8 %); at its sector median (30.4×) $187 (+53 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in pharma: 5 of 7 pass
- R&D / Revenue 0.0 %, fails.
- FCF / Net Income 77.6 %, fails.
- 5y EPS growth 14.3 %, passes.
- Gross margin 95.7 %, passes.
- ROIC 12.8 %, passes, near the threshold.
- Net debt / EBITDA 1.9×, passes.
- P/E vs own 10y history 19.9×, passes.
Against its peers (reference peers) — Encompass Health Corporation: P/E 19.9×; EV/EBITDA 8.2×; ROIC 12.8 %; $12.0B. The Ensign Group, Inc. (P/E 27.4×; EV/EBITDA 19.2×; ROIC 7.4 %; $10.7B), PACS Group, Inc. (P/E 29.4×; EV/EBITDA 22.2×; ROIC 6.1 %; $7.8B), Chemed Corporation (P/E 26.8×; EV/EBITDA 16.4×; ROIC 19.2 %; $7.0B).
Expensive or cheap against its last ten years?
P/E at each close: today 19.9× · median 18.2× · minimum 10.8× · maximum 29.2× · cheap below 15.9× · expensive above 24.0×. It has been cheaper than today 59% of the time over its last ten years.
Dividend
tight (only raised recently) · Yield 0.64 % ($0.71 per share in 2025) · Years raising it 2 · 5-year growth -9 % a year · Free cash flow coverage 5.5× · With $1,000 invested today you'd collect $6.40 a year ($0.53 a month).
Profitability
| Return on Equity | 23.31% |
| Return on Invested Capital | 12.76% |
| Return on Assets | 8.52% |
| Gross Margin | 45.17% |
| Operating Margin | 17.01% |
| Net Margin | 10.17% |
Financial Health
| Debt / Equity | 0.07 |
| Current Ratio | 1.09 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 3.27 |
Price Performance
| 1 month | -1.19% |
| 3 months | +9.92% |
| Year-to-date | +15.03% |
| 1 year | -2.82% |
| 3 years | +101.37% |
| 5 years | +141.57% |
| 10 years | +282.49% |
Dividend History
Paid in the last 12 months: $0.7800 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-01 | $0.2100 |
| 2026-07-01 | $0.1900 |
| 2026-04-01 | $0.1900 |
| 2026-01-02 | $0.1900 |
| 2025-10-01 | $0.1900 |
| 2025-07-01 | $0.1700 |
| 2025-04-01 | $0.1700 |
| 2025-01-02 | $0.1700 |
| 2024-10-01 | $0.1700 |
| 2024-07-01 | $0.1500 |
Amounts adjusted for stock splits.
Related companies: ENSG · OPCH · ADUS · AVAH · CHE · PACS · NHC
Explore sector: Healthcare · Medical - Care Facilities
More sections of EHC: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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