Encompass Health Corp (EHC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Encompass Health Corp stock (EHC) is currently trading at $98.82. Encompass Health Corp PE ratio is 17.57. Encompass Health Corp PS ratio (Price-to-Sales) is 1.65. Analyst consensus price target for EHC is $142.73. WallStSmart rates EHC as Moderate Buy.
- EHC PE ratio analysis and historical PE chart
- EHC PS ratio (Price-to-Sales) history and trend
- EHC intrinsic value — DCF, Graham Number, EPV models
- EHC stock price prediction 2025 2026 2027 2028 2029 2030
- EHC fair value vs current price
- EHC insider transactions and insider buying
- Is EHC undervalued or overvalued?
- Encompass Health Corp financial analysis — revenue, earnings, cash flow
- EHC Piotroski F-Score and Altman Z-Score
- EHC analyst price target and Smart Rating
Encompass Health Corp
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EHC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Encompass Health Corp (EHC)
EHC trades at a significant discount to its Graham intrinsic value of $226.00, offering a 50% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Encompass Health Corp (EHC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, price/sales. Overall metrics suggest strong investment potential with favorable risk/reward.
Encompass Health Corp (EHC) Key Strengths (6)
Growing significantly faster than its price suggests
101.88% of shares held by major funds and institutions
Every $100 of equity generates $25 in profit
Paying $1.65 for every $1 of annual revenue
Strong earnings growth at 21.20% per year
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Encompass Health Corp (EHC) Areas to Watch (4)
Premium pricing at 3.9x book value
Modest revenue growth at 9.90%
Thin profit margins with limited profitability
Decent operational efficiency, solid but not exceptional
Encompass Health Corp (EHC) Detailed Analysis Report
Overall Assessment
This company scores 69/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.7/10) while 4 fall into concern territory (avg 4.5/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Institutional Own., Return on Equity. Valuation metrics including PEG Ratio (0.41), Price/Sales (1.65) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 24.80%. Growth metrics are encouraging with EPS Growth at 21.20%.
The Bear Case
The primary concerns are Price/Book, Revenue Growth, Profit Margin. Some valuation metrics including Price/Book (3.91) suggest expensive pricing. Growth concerns include Revenue Growth at 9.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 18.30%, Profit Margin at 9.54%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 24.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 9.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Institutional Own.) and negatives (Price/Book, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
EHC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
EHC's Price-to-Sales ratio of 1.65x sits near its historical average of 1.72x (50th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 31% below its historical high of 2.41x set in May 2021, and 46% above its historical low of 1.13x in Sep 2022. Over the past 12 months, the PS ratio has compressed from ~1.9x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Encompass Health Corp (EHC) · HEALTHCARE › MEDICAL CARE FACILITIES
The Big Picture
Encompass Health Corp operates as a stable business with moderate growth and solid fundamentals. Revenue reached 5.9B with 10% growth year-over-year. Profit margins are thin at 9.5%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 2480.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 117M in free cash flow and 346M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Encompass Health Corp push profit margins above 15% as the business scales?
Sector dynamics: monitor MEDICAL CARE FACILITIES industry trends, competitive moves, and regulatory changes that could impact Encompass Health Corp.
Bottom Line
Encompass Health Corp offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(67 last 3 months)
| Insider | Type | Shares |
|---|---|---|
TUER, PATRICK WILLIAM EVP, Chief Operating Officer | Sell | -2,804 |
| Insider | Type | Shares |
|---|---|---|
HAYES, CAIN A Director | Buy | +457 |
Data sourced from SEC Form 4 filings
Last updated: 8:28:18 AM
About Encompass Health Corp(EHC)
NYSE
HEALTHCARE
MEDICAL CARE FACILITIES
USA
Encompass Health Corporation offers in-home and post-acute health care services in the United States. The company is headquartered in Birmingham, Alabama.