Zacks Investment Research·Jun 23, 2026
Encompass Health (EHC) is a Top-Ranked Growth Stock: Should You Buy?Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Encompass Health Corporation(EHC)Earnings, Financials & Key Ratios
EHC•NYSE
$110.72
20.0× P/E·Price updated Jul 7, 2026
AboutEncompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The Home Health and Hospice segment provides home health and hospice services primarily in the Southeast and Texas. Its home health services include a range of Medicare-certified home nursing services to adult patients in need of care comprising skilled nursing, medical social work, and home health aide services, as well as physical, occupational, speech therapy, and others. This segment's hospice services comprise in-home services to terminally ill patients and their families. As of June 1, 2022, it operated 149 hospitals, 252 home health locations, and 99 hospice locations in 42 states and Puerto Rico. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.Show more
- Revenue$5.94B+10.5%
- EBITDA$1.38B+18.6%
- Net Income$566M+24.2%
- EPS (Diluted)5.54+24.2%
- Gross Margin95.71%+130.3%
- EBITDA Margin23.27%+7.4%
- Operating Margin17.74%+10.3%
- Net Margin9.54%+12.5%
- ROE18.49%+4.4%
EHC Price & Volume
Encompass Health Corporation (EHC) stock price & volume — 10-year historical chart
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Aggressive Deleveraging Supports Inpatient Rehabilitation Growth Trajectory
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Expanding
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Regulatory reimbursement rate sensitivity
Key Thesis Takeaways
- Encompass Health has successfully transitioned into a leaner, pure-play inpatient rehabilitation operator, evidenced by a dramatic reduction in debt-to-equity from 1.28 in 2023Q4 to 0.08 in 2026Q1.
- While the company maintains a consistent 9.0% year-over-year revenue growth rate, investors should monitor the inherent capital intensity of its facility expansion, which saw capital expenditures reach $162.4 million in 2026Q1.
- Future profitability remains sensitive to potential CMS regulatory shifts, which could impact the premium reimbursement rates currently supporting the company's 14.6% operating margin.
Verdict Logic
while the company has achieved a robust balance sheet with a debt-to-equity ratio of 0.08, the current P/E of 18.29 and inconsistent free cash flow suggest investors should wait for more stable cash generation before increasing exposure.
EHC Growth Metrics
Encompass Health Corporation (EHC) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years6.66%
5 Years10.72%
3 Years10.92%
TTM10.05%
Profit CAGR
10 Years11.95%
5 Years14.78%
3 Years27.84%
TTM23.15%
EPS CAGR
10 Years11.24%
5 Years14.22%
3 Years27.07%
TTM20.45%
Return on Capital
10 Years16.47%
5 Years17.68%
3 Years21.99%
Last Year17.63%
EHC Recent Earnings
Encompass Health Corporation (EHC) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
Apr 30, 2026Metric
Actual
Est
EPS
$1.60+6.0%
$1.51
Rev
$1.6B+1.2%
$1.6B
Q1 2026
Feb 5, 2026Metric
Actual
Est
EPS
$1.46+13.2%
$1.29
Rev
$1.5B+0.3%
$1.5B
Q4 2025
Oct 29, 2025Metric
Actual
Est
EPS
$1.23+3.4%
$1.19
Rev
$1.5B-4.1%
$1.5B
Q3 2025
Aug 4, 2025Metric
Actual
Est
EPS
$1.40+13.8%
$1.23
Rev
$1.5B+2.1%
$1.4B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 30, 2026 | $1.60vs $1.51+6.0% | $1.6Bvs $1.6B+1.2% |
| Q1 2026 | Feb 5, 2026 | $1.46vs $1.29+13.2% | $1.5Bvs $1.5B+0.3% |
| Q4 2025 | Oct 29, 2025 | $1.23vs $1.19+3.4% | $1.5Bvs $1.5B-4.1% |
| Q3 2025 | Aug 4, 2025 | $1.40vs $1.23+13.8% | $1.5Bvs $1.4B+2.1% |
Based on last 12 quarters of dataView full earnings history →
Latest EHC News
Recent stock market news and headlines for Encompass Health Corporation (EHC)
The Motley Fool·Jun 15, 2026
DaVita vs. Encompass Health: Which Healthcare Stock Is a Better Buy in 2026?DaVita operates more than 3,200 dialysis centers globally, serving roughly 295,000 patients with a dominant market share in kidney care. Encompass Health is a leader in inpatient rehabilitation with double-digit revenue growth and higher net margins than its peer in this matchup.
Peers Comparison
Key metrics vs top competitors for Encompass Health Corporation (EHC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $110.72 | $11.01B | 19.99 | 10.46% | 9.54% | 18.49% | 0.63% | |
| $71.80 | $1.09B | 50.56 | 16.33% | 1.52% | 1.36% | — | |
| $16.51 | $2.05B | 13.99 | 5.12% | 2.42% | 6.57% | — | |
| $170.87 | $9.98B | 29.26 | 18.72% | 6.89% | 16.61% | — | |
| $31.92 | $2.94B | -2.63 | 5.04% | -32.84% | -40.92% | — | |
| $161.26 | $10.09B | 6.98 | 9.71% | 8.56% | 20.65% | — |
Compare EHC vs Peers
Encompass Health Corporation (EHC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
EHC SEC Filings & Documents
Encompass Health Corporation (EHC) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 30, 2026·SEC
Material company update
Mar 10, 2026·SEC
Material company update
Feb 5, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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EHC Frequently Asked Questions
Encompass Health Corporation (EHC) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Encompass Health Corporation's revenue?
Encompass Health Corporation (EHC) reported $6.07B in revenue for fiscal year 2025. This represents a 129% increase from $2.65B in 1996.
How fast is Encompass Health Corporation growing?
Encompass Health Corporation (EHC) grew revenue by 10.5% over the past year. This is steady growth.
Is EHC profitable?
Yes, Encompass Health Corporation (EHC) is profitable, generating $609.2M in net income for fiscal year 2025 (9.5% net margin).
Dividend & Returns
Does EHC pay dividends?
Yes, Encompass Health Corporation (EHC) pays a dividend with a yield of 0.63%. This makes it attractive for income-focused investors.
What is EHC's return on equity?
Encompass Health Corporation (EHC) has a return on equity (ROE) of 18.5%. This is reasonable for most industries.
What is Encompass Health Corporation's free cash flow?
Encompass Health Corporation (EHC) generated $172.5M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.