Encompass Health Corporation (EHC) 10-Year Financial Performance & Capital Metrics

EHC • • Industrial / General

HealthcareHealthcare FacilitiesRehabilitation & Therapy ServicesInpatient Rehabilitation Hospitals

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 $5.37B +11.9%
EBITDA $1.16B -41.8%
Net Income $456M +29.5%
EPS (Diluted) 4.46 +28.5%
Gross Margin 41.56% +0.6%
EBITDA Margin 21.66% -48.0%
Operating Margin 16.09% -55.2%
Net Margin 8.48% +15.7%
ROE 17.71% +4.6%
ROIC 12.23% -52.9%
Debt/Equity 0.95 -25.4%
Interest Coverage 6.29 -47.7%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 15.8%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.51%

5Y3.13%

3Y10.2%

TTM11.13%

Profit (Net Income) CAGR

10Y7.46%

5Y4.9%

3Y3.4%

TTM28.08%

EPS CAGR

10Y6.89%

5Y4.32%

3Y2.76%

TTM27.78%

ROCE

10Y Avg16.22%

5Y Avg17.69%

3Y Avg19.88%

Latest15.52%

Peer Comparison

Inpatient Rehabilitation Hospitals

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
EHCEncompass Health Corporation	10.34B	102.80	23.05	11.91%	9.33%	16.98%	3.48%	0.95
SEMSelect Medical Holdings Corporation	1.91B	15.42	9.29	-22.16%	2.8%	5.47%	28.26%	1.35

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.12B	3.64B	3.91B	4.28B	4.61B	3.57B	4.01B	4.35B	4.8B	5.37B
Revenue Growth %	0.31%	0.17%	0.07%	0.09%	0.08%	-0.23%	0.13%	0.08%	0.1%	0.12%
Cost of Goods Sold+	128.7M	140M	149.3M	158.7M	167.9M	171M	2.31B	2.6B	2.82B	3.14B
COGS % of Revenue	0.04%	0.04%	0.04%	0.04%	0.04%	0.05%	0.58%	0.6%	0.59%	0.58%
Gross Profit+	2.99B	3.5B	3.76B	4.12B	4.44B	3.4B	1.7B	1.75B	1.98B	2.23B
Gross Margin %	0.96%	0.96%	0.96%	0.96%	0.96%	0.95%	0.42%	0.4%	0.41%	0.42%
Gross Profit Growth %	0.32%	0.17%	0.07%	0.09%	0.08%	-0.23%	-0.5%	0.03%	0.13%	0.13%
Operating Expenses+	2.99B	3.5B	3.76B	4.12B	4.44B	3.4B	1.04B	1.12B	258M	1.37B
OpEx % of Revenue	0.96%	0.96%	0.96%	0.96%	0.96%	0.95%	0.26%	0.26%	0.05%	0.25%
Selling, General & Admin	1.86B	2.19B	2.4B	2.65B	2.9B	2.12B	228.5M	209M	258M	266.5M
SG&A % of Revenue	0.6%	0.6%	0.61%	0.62%	0.63%	0.59%	0.06%	0.05%	0.05%	0.05%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	1.13B	1.31B	1.36B	1.47B	1.53B	1.28B	815.5M	914M	0	1.1B
Operating Income+	554.2M	648.8M	649.4M	681.6M	692.5M	0	659.4M	630.2M	1.72B	864.5M
Operating Margin %	0.18%	0.18%	0.17%	0.16%	0.15%	-	0.16%	0.14%	0.36%	0.16%
Operating Income Growth %	0.19%	0.17%	0%	0.05%	0.02%	-1%	-	-0.04%	1.74%	-0.5%
EBITDA+	693.9M	821.4M	833.2M	881.3M	911.2M	739.6M	879M	873.8M	2B	1.16B
EBITDA Margin %	0.22%	0.23%	0.21%	0.21%	0.2%	0.21%	0.22%	0.2%	0.42%	0.22%
EBITDA Growth %	0.21%	0.18%	0.01%	0.06%	0.03%	-0.19%	0.19%	-0.01%	1.29%	-0.42%
D&A (Non-Cash Add-back)	139.7M	172.6M	183.8M	199.7M	218.7M	203M	219.6M	243.6M	273.9M	299.6M
EBIT	538.5M	654.1M	650.8M	640.5M	722M	536.6M	669.3M	626.5M	731.8M	887M
Net Interest Income+	-142.9M	-172.1M	-154.4M	-147.3M	-159.7M	-183.7M	-164.3M	-175.7M	-143.5M	-137.4M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	142.9M	172.1M	154.4M	147.3M	159.7M	183.7M	164.3M	175.7M	143.5M	137.4M
Other Income/Expense	-158.6M	-166.8M	-153M	-188.4M	-130.2M	352.9M	-154.4M	-179.4M	-1.12B	-114.9M
Pretax Income+	395.6M	482M	496.4M	493.2M	562.3M	352.9M	505M	450.8M	607.2M	749.6M
Pretax Margin %	0.13%	0.13%	0.13%	0.12%	0.12%	0.1%	0.13%	0.1%	0.13%	0.14%
Income Tax+	141.9M	163.9M	145.8M	118.9M	115.9M	74.7M	101.9M	100.1M	132.2M	150.2M
Effective Tax Rate %	0.46%	0.51%	0.55%	0.59%	0.64%	0.81%	0.82%	0.6%	0.58%	0.61%
Net Income+	183.1M	247.6M	271.1M	292.3M	358.7M	284.2M	412.2M	271M	352M	455.7M
Net Margin %	0.06%	0.07%	0.07%	0.07%	0.08%	0.08%	0.1%	0.06%	0.07%	0.08%
Net Income Growth %	-0.18%	0.35%	0.09%	0.08%	0.23%	-0.21%	0.45%	-0.34%	0.3%	0.29%
Net Income (Continuing)	253.7M	318.1M	350.6M	374.3M	446.4M	278.2M	403.1M	350.7M	475M	599.4M
Discontinued Operations	-900K	0	-400K	1.1M	-600K	90.6M	114.1M	15.2M	-12M	-2.8M
Minority Interest	289M	331.1M	463.8M	542M	580.5M	413.6M	487.9M	551.6M	649.7M	782.2M
EPS (Diluted)+	1.91	2.59	2.69	2.93	3.61	2.85	4.11	2.70	3.47	4.46
EPS Growth %	-0.17%	0.36%	0.04%	0.09%	0.23%	-0.21%	0.44%	-0.34%	0.29%	0.29%
EPS (Basic)	2.02	2.77	2.73	2.99	3.65	2.87	4.15	2.72	3.54	4.53
Diluted Shares Outstanding	101M	99.5M	99.3M	99.8M	99.4M	99.8M	100.2M	100.4M	101.3M	102.2M
Basic Shares Outstanding	89.4M	89.1M	93.7M	97.9M	98M	98.6M	99M	99.2M	99.5M	99.9M
Dividend Payout Ratio	0.42%	0.34%	0.34%	0.34%	0.3%	0.39%	0.27%	0.37%	0.17%	0.14%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	598.7M	654.5M	702.2M	662.1M	755.8M	948.6M	921.4M	717.2M	841.8M	886.9M
Cash & Short-Term Investments	61.6M	40.5M	54.4M	69.2M	94.8M	224M	49.4M	21.8M	141.8M	85.4M
Cash Only	61.6M	40.5M	54.4M	69.2M	94.8M	224M	49.4M	21.8M	104.2M	85.4M
Short-Term Investments	0	0	0	0	0	0	0	0	37.6M	0
Accounts Receivable	410.5M	443.8M	472.1M	467.7M	498.7M	563M	502.1M	536.8M	611.6M	598.8M
Days Sales Outstanding	48.09	44.47	44.03	39.91	39.53	57.62	45.65	45.06	46.5	40.68
Inventory	45.9M	60.9M	62.4M	59M	0	0	0	0	0	0
Days Inventory Outstanding	130.17	158.78	152.55	135.7	-	-	-	-	-	-
Other Current Assets	45.9M	60.9M	62.4M	59M	64.8M	75.2M	255M	123.7M	53.9M	160.4M
Total Non-Current Assets+	4.01B	4.03B	4.19B	4.57B	5.32B	5.5B	5.94B	4.92B	5.26B	5.65B
Property, Plant & Equipment	1.31B	1.39B	1.52B	1.63B	2.24B	2.45B	2.77B	3.15B	3.51B	3.85B
Fixed Asset Turnover	2.38x	2.62x	2.58x	2.62x	2.06x	1.45x	1.45x	1.38x	1.37x	1.40x
Goodwill	1.89B	1.93B	1.97B	2.1B	2.31B	2.32B	1.24B	1.26B	1.28B	1.28B
Intangible Assets	419.4M	411.3M	403.1M	443.4M	476.3M	431.3M	158.4M	282.3M	278.2M	297.8M
Long-Term Investments	51.8M	46.5M	56.1M	74.2M	7.4M	5.5M	0	0	109.5M	122.5M
Other Non-Current Assets	145.2M	174.8M	179M	216.8M	300.2M	289.5M	1.77B	222.1M	82.1M	96.7M
Total Assets+	4.61B	4.68B	4.89B	5.23B	6.08B	6.45B	6.86B	5.64B	6.1B	6.53B
Asset Turnover	0.68x	0.78x	0.80x	0.82x	0.76x	0.55x	0.58x	0.77x	0.79x	0.82x
Asset Growth %	0.35%	0.02%	0.05%	0.07%	0.16%	0.06%	0.07%	-0.18%	0.08%	0.07%
Total Current Liabilities+	426.4M	475.6M	517.5M	672.5M	721M	717.3M	748.8M	575.9M	656.4M	841M
Accounts Payable	61.6M	68.3M	78.4M	90M	94.6M	115M	134M	132.9M	170M	171M
Days Payables Outstanding	174.7	178.07	191.67	206.99	205.65	245.47	21.16	18.69	22.02	19.88
Short-Term Debt	36.8M	37.1M	32.3M	35.8M	18.3M	14.5M	18.7M	25.2M	48.9M	114.9M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	0	0	0	0	0	0
Other Current Liabilities	131.6M	136.1M	149.1M	292.6M	162.7M	174.3M	264.1M	181.1M	230M	505.1M
Current Ratio	1.40x	1.38x	1.36x	0.98x	1.05x	1.32x	1.23x	1.25x	1.28x	1.05x
Quick Ratio	1.30x	1.25x	1.24x	0.90x	1.05x	1.32x	1.23x	1.25x	1.28x	1.05x
Cash Conversion Cycle	3.56	25.18	4.91	-31.39	-	-	-	-	-	-
Total Non-Current Liabilities+	3.28B	3.14B	2.73B	2.68B	3.43B	3.73B	3.72B	3.2B	3.15B	2.84B
Long-Term Debt	3.13B	2.98B	2.55B	2.48B	2.63B	2.85B	2.85B	2.74B	2.37B	2.06B
Capital Lease Obligations	276.3M	0	0	0	634.9M	605.5M	568.8M	199.7M	514.6M	484.4M
Deferred Tax Liabilities	0	0	0	0	0	0	0	83M	87M	105.2M
Other Non-Current Liabilities	-131.7M	160M	185.3M	205.2M	159.9M	266.8M	296.8M	174.2M	177.9M	190.4M
Total Liabilities	3.71B	3.61B	3.25B	3.36B	4.15B	4.44B	4.47B	3.77B	3.81B	3.69B
Total Debt+	3.17B	3.02B	2.58B	2.51B	3.35B	3.54B	3.48B	2.99B	2.93B	2.71B
Net Debt	3.11B	2.98B	2.52B	2.45B	3.25B	3.32B	3.43B	2.97B	2.83B	2.63B
Debt / Equity	3.52x	2.83x	1.57x	1.34x	1.73x	1.77x	1.45x	1.61x	1.28x	0.95x
Debt / EBITDA	4.57x	3.67x	3.09x	2.85x	3.67x	4.79x	3.96x	3.42x	1.47x	2.33x
Net Debt / EBITDA	4.48x	3.62x	3.03x	2.77x	3.57x	4.49x	3.90x	3.40x	1.42x	2.26x
Interest Coverage	3.88x	3.77x	4.21x	4.63x	4.34x	-	4.01x	3.59x	12.02x	6.29x
Total Equity+	900.4M	1.07B	1.65B	1.87B	1.93B	2B	2.4B	1.86B	2.3B	2.85B
Equity Growth %	0.13%	0.19%	0.54%	0.14%	0.03%	0.04%	0.2%	-0.22%	0.23%	0.24%
Book Value per Share	8.91	10.72	16.57	18.75	19.44	20.06	23.94	18.54	22.68	27.88
Total Shareholders' Equity	611.4M	735.9M	1.18B	1.33B	1.35B	1.59B	1.91B	1.31B	1.65B	2.07B
Common Stock	611.4M	1.1M	1.1M	1.1M	1.1M	1.1M	1.1M	1.1M	1.2M	1.2M
Retained Earnings	-1.7B	-1.45B	-1.19B	-885.2M	-526.5M	-242.3M	141.8M	115.7M	406.5M	796.7M
Treasury Stock	-527.4M	-614.7M	-418.5M	-427.9M	-492.3M	-497.4M	-521.2M	-536.7M	-547.2M	-577.9M
Accumulated OCI	-1.2M	-1.2M	-1.3M	0	0	0	0	0	0	0
Minority Interest	289M	331.1M	463.8M	542M	580.5M	413.6M	487.9M	551.6M	649.7M	782.2M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	484.8M	605.5M	657.2M	762.4M	635.3M	704.7M	715.8M	705.8M	850.8M	1B
Operating CF Margin %	0.16%	0.17%	0.17%	0.18%	0.14%	0.2%	0.18%	0.16%	0.18%	0.19%
Operating CF Growth %	0.09%	0.25%	0.09%	0.16%	-0.17%	0.11%	0.02%	-0.01%	0.21%	0.18%
Net Income	253.7M	318.1M	335.8M	374.3M	446.4M	284.2M	517.6M	365.9M	361.6M	599.4M
Depreciation & Amortization	139.7M	172.6M	183.8M	199.7M	218.7M	243M	219.6M	243.6M	273.9M	299.6M
Stock-Based Compensation	26.2M	27.4M	47.7M	85.9M	114.4M	25.6M	29.1M	29.2M	50.6M	48.3M
Deferred Taxes	127.1M	132.9M	75.6M	-9.1M	40M	52.4M	17.4M	27.9M	3.9M	10.7M
Other Non-Cash Items	89.1M	63.2M	75.2M	65.6M	-4.1M	5.6M	50.1M	69.6M	110.5M	22.9M
Working Capital Changes	-151M	-108.7M	-60.9M	46M	-180.1M	93.9M	-118M	-30.4M	50.3M	21.9M
Change in Receivables	-134.1M	-127.5M	-83.9M	7M	-22.9M	-5.1M	-64.3M	-16.9M	-22.4M	3M
Change in Inventory	-13.9M	18.3M	25.9M	-2.4M	0	0	0	0	0	0
Change in Payables	900K	6.3M	7.5M	6.6M	-6.1M	0	14.9M	2.3M	11.8M	3M
Cash from Investing+	-1.13B	-245M	-284.5M	-424.5M	-657.4M	-407.5M	-666.3M	-627M	-602.8M	-653.3M
Capital Expenditures	-156.5M	-202.9M	-245M	-270.5M	-404.1M	-408.2M	-551.2M	-584.1M	-583.1M	-642.5M
CapEx % of Revenue	0.05%	0.06%	0.06%	0.06%	0.09%	0.11%	0.14%	0.13%	0.12%	0.12%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	6.1M	31.1M	18.5M	-8.4M	-6.5M	-2.1M	3.5M	-7.7M	3.3M	-7.2M
Cash from Financing+	639.9M	-381.6M	-359.9M	-321.2M	48.2M	-145.9M	-240.1M	-145.7M	-197.2M	-330.6M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-80.3M	-83.8M	-91.5M	-100.8M	-108.7M	-111.9M	-112.2M	-99M	-60.4M	-62.8M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-35.1M	-67.7M	-8.3M	-116.9M	-273.2M	-243.8M	-54.2M	458.8M	-45.3M	5.3M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	328.3M	402.6M	412.2M	491.9M	231.2M	296.5M	164.6M	121.7M	267.7M	360.3M
FCF Margin %	0.11%	0.11%	0.11%	0.12%	0.05%	0.08%	0.04%	0.03%	0.06%	0.07%
FCF Growth %	0.28%	0.23%	0.02%	0.19%	-0.53%	0.28%	-0.44%	-0.26%	1.2%	0.35%
FCF per Share	3.25	4.05	4.15	4.93	2.33	2.97	1.64	1.21	2.64	3.53
FCF Conversion (FCF/Net Income)	2.65x	2.45x	2.42x	2.61x	1.77x	2.48x	1.74x	2.60x	2.42x	2.20x
Interest Paid	121.4M	164.3M	150.5M	149.6M	155.7M	168.4M	168.4M	178.4M	147.7M	146.8M
Taxes Paid	16.8M	33.3M	96.4M	115.4M	104.2M	34.3M	131.4M	51.2M	109.3M	164.5M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	21.57%	25.17%	19.99%	16.62%	18.86%	14.45%	18.73%	12.72%	16.93%	17.71%
Return on Invested Capital (ROIC)	12.1%	12.08%	11.86%	12.05%	10.93%	-	8.87%	8.86%	25.98%	12.23%
Gross Margin	95.87%	96.16%	96.19%	96.29%	96.35%	95.21%	42.43%	40.32%	41.3%	41.56%
Net Margin	5.88%	6.8%	6.93%	6.83%	7.79%	7.97%	10.27%	6.23%	7.33%	8.48%
Debt / Equity	3.52x	2.83x	1.57x	1.34x	1.73x	1.77x	1.45x	1.61x	1.28x	0.95x
Interest Coverage	3.88x	3.77x	4.21x	4.63x	4.34x	-	4.01x	3.59x	12.02x	6.29x
FCF Conversion	2.65x	2.45x	2.42x	2.61x	1.77x	2.48x	1.74x	2.60x	2.42x	2.20x
Revenue Growth	31.23%	16.91%	7.45%	9.28%	7.66%	-22.56%	12.58%	8.31%	10.41%	11.91%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2024
Inpatient	-	-	-	-	-	-	-	5.23B
Inpatient Growth	-	-	-	-	-	-	-	-
Outpatient and Other	-	-	-	-	-	-	-	142.7M
Outpatient and Other Growth	-	-	-	-	-	-	-	-
Inpatient Rehabilitation	-	5.99B	6.33B	27.4M	29.2M	3.57B	23.1M	-
Inpatient Rehabilitation Growth	-	-	5.75%	-99.57%	6.57%	12113.01%	-99.35%	-
Home Health and Hospice	-	1.37B	1.56B	1.5M	1M	1.08B	300K	-
Home Health and Hospice Growth	-	-	14.11%	-99.90%	-33.33%	107720.00%	-99.97%	-
Home health	478.1M	-	-	-	-	-	-	-
Home health Growth	-	-	-	-	-	-	-	-
Hospice	31.7M	-	-	-	-	-	-	-
Hospice Growth	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Encompass Health Corporation (EHC) has a price-to-earnings (P/E) ratio of 23.0x. This is roughly in line with market averages.

Growth & Financials

Encompass Health Corporation (EHC) reported $5.80B in revenue for fiscal year 2024. This represents a 189% increase from $2.01B in 2011.

Encompass Health Corporation (EHC) grew revenue by 11.9% over the past year. This is steady growth.

Yes, Encompass Health Corporation (EHC) is profitable, generating $541.0M in net income for fiscal year 2024 (8.5% net margin).

Dividend & Returns

Yes, Encompass Health Corporation (EHC) pays a dividend with a yield of 0.60%. This makes it attractive for income-focused investors.

Encompass Health Corporation (EHC) has a return on equity (ROE) of 17.7%. This is reasonable for most industries.

Encompass Health Corporation (EHC) generated $402.6M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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