30 years of historical data (1996–2025) · Healthcare · Medical - Care Facilities
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Encompass Health Corporation trades at 19.4x earnings, roughly in line with its 5-year average of 18.8x, sitting at the 70th percentile of its historical range. Compared to the Healthcare sector median P/E of 23.7x, the stock trades at a discount of 18%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.8B | $10.8B | $9.4B | $6.8B | $6.0B | $5.2B | $6.6B | $5.5B | $4.9B | $3.9B | $3.3B |
| Enterprise Value | $11.0B | $11.0B | $12.1B | $9.6B | $9.0B | $8.6B | $9.9B | $8.7B | $7.3B | $6.4B | $6.2B |
| P/E Ratio → | 19.44 | 19.12 | 20.71 | 19.23 | 22.15 | 12.63 | 23.07 | 15.26 | 16.74 | 14.61 | 12.66 |
| P/S Ratio | 1.82 | 1.83 | 1.76 | 1.41 | 1.38 | 1.30 | 1.84 | 1.19 | 1.14 | 1.00 | 0.90 |
| P/B Ratio | 3.37 | 3.31 | 3.31 | 2.94 | 3.23 | 2.17 | 3.28 | 2.83 | 2.62 | 2.37 | 3.06 |
| P/FCF | — | — | 26.20 | 25.25 | 49.34 | 31.59 | 22.13 | 23.68 | 9.95 | 9.47 | 8.10 |
| P/OCF | — | — | 9.41 | 7.94 | 8.51 | 7.26 | 9.31 | 8.62 | 6.42 | 5.94 | 5.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
Encompass Health Corporation's enterprise value stands at 10.1x EBITDA, 11% above its 5-year average of 9.1x. The Healthcare sector median is 13.8x, placing the stock at a 27% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.86 | 2.25 | 2.00 | 2.06 | 2.15 | 2.77 | 1.90 | 1.72 | 1.64 | 1.71 |
| EV / EBITDA | 10.09 | 10.15 | 10.37 | 4.80 | 10.27 | 9.82 | 13.36 | 9.58 | 8.33 | 7.71 | 7.59 |
| EV / EBIT | 14.45 | — | 13.60 | 13.10 | 14.33 | 12.90 | 18.41 | 12.09 | 11.46 | 9.87 | 9.54 |
| EV / FCF | — | — | 33.49 | 35.81 | 73.75 | 52.44 | 33.33 | 37.75 | 14.92 | 15.59 | 15.50 |
Margins and return-on-capital ratios measuring operating efficiency
Encompass Health Corporation earns an operating margin of 12.8%. Operating margins have compressed from 35.9% to 12.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 18.5% indicates solid capital efficiency. ROIC of 12.7% represents solid returns on invested capital.
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.5% | 47.5% | 41.6% | 41.3% | 40.3% | 42.4% | 95.2% | 96.4% | 96.3% | 96.2% | 96.2% |
| Operating Margin | 12.8% | 12.8% | 16.1% | 35.9% | 14.5% | 16.4% | — | 15.0% | 15.9% | 16.6% | 17.8% |
| Net Profit Margin | 9.5% | 9.5% | 8.5% | 7.3% | 6.2% | 10.3% | 8.0% | 7.8% | 6.8% | 6.9% | 6.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.5% | 18.5% | 17.7% | 16.9% | 12.7% | 18.7% | 14.4% | 18.9% | 16.6% | 20.0% | 25.2% |
| ROA | 8.3% | 8.3% | 7.2% | 6.0% | 4.3% | 6.2% | 4.5% | 6.3% | 5.8% | 5.7% | 5.3% |
| ROIC | 12.7% | 12.7% | 12.2% | 26.0% | 8.9% | 8.9% | — | 10.9% | 12.0% | 11.9% | 12.1% |
| ROCE | 12.7% | 12.7% | 15.5% | 32.8% | 11.3% | 11.1% | — | 14.0% | 15.3% | 15.1% | 15.5% |
Solvency and debt-coverage ratios — lower is generally safer
Encompass Health Corporation carries a Debt/EBITDA ratio of 0.2x, which is very conservative (92% below the sector average of 3.1x). Net debt stands at $195M ($267M total debt minus $72M cash). Interest coverage of 6.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.08 | 0.08 | 0.95 | 1.28 | 1.61 | 1.45 | 1.77 | 1.73 | 1.34 | 1.57 | 2.83 |
| Debt / EBITDA | 0.25 | 0.25 | 2.33 | 1.47 | 3.42 | 3.96 | 4.79 | 3.67 | 2.85 | 3.09 | 3.67 |
| Net Debt / Equity | — | 0.06 | 0.92 | 1.23 | 1.60 | 1.43 | 1.66 | 1.68 | 1.31 | 1.53 | 2.79 |
| Net Debt / EBITDA | 0.18 | 0.18 | 2.26 | 1.42 | 3.40 | 3.90 | 4.49 | 3.57 | 2.77 | 3.03 | 3.62 |
| Debt / FCF | — | — | 7.30 | 10.57 | 24.41 | 20.85 | 11.19 | 14.07 | 4.97 | 6.12 | 7.39 |
| Interest Coverage | 6.17 | 6.17 | 6.29 | 12.02 | 3.59 | 4.01 | — | 4.34 | 4.63 | 4.21 | 3.77 |
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.08x means Encompass Health Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.28x to 1.08x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.05 | 1.28 | 1.25 | 1.23 | 1.32 | 1.05 | 0.98 | 1.36 | 1.38 |
| Quick Ratio | 1.08 | 1.08 | 1.05 | 1.28 | 1.25 | 1.23 | 1.32 | 1.05 | 0.90 | 1.24 | 1.25 |
| Cash Ratio | 0.09 | 0.09 | 0.10 | 0.22 | 0.04 | 0.07 | 0.31 | 0.13 | 0.10 | 0.11 | 0.09 |
| Asset Turnover | — | 0.84 | 0.82 | 0.79 | 0.77 | 0.58 | 0.55 | 0.76 | 0.82 | 0.80 | 0.78 |
| Inventory Turnover | 2.69 | — | — | — | — | — | — | — | 2.69 | 2.39 | 2.30 |
| Days Sales Outstanding | — | 38.08 | 40.68 | 46.50 | 45.06 | 45.65 | 57.62 | 39.53 | 39.91 | 44.03 | 44.47 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Encompass Health Corporation returns 2.1% to shareholders annually — split between a 0.6% dividend yield and 1.5% buyback yield. The earnings yield of 5.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.7% | 0.7% | 0.9% | 1.6% | 2.2% | 1.7% | 2.0% | 2.1% | 2.3% | 2.6% |
| Payout Ratio | — | — | 13.8% | 17.2% | 36.5% | 27.2% | 39.4% | 30.3% | 34.5% | 33.8% | 33.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 5.2% | 4.8% | 5.2% | 4.5% | 7.9% | 4.3% | 6.6% | 6.0% | 6.8% | 7.9% |
| FCF Yield | — | — | 3.8% | 4.0% | 2.0% | 3.2% | 4.5% | 4.2% | 10.0% | 10.6% | 12.3% |
| Buyback Yield | 1.5% | 1.5% | 0.3% | 0.1% | 0.1% | 0.3% | 0.1% | 0.8% | 1.3% | 1.0% | 2.0% |
| Total Shareholder Yield | 2.1% | 2.1% | 1.0% | 1.0% | 1.8% | 2.4% | 1.8% | 2.8% | 3.4% | 3.3% | 4.6% |
| Shares Outstanding | — | $102M | $102M | $101M | $100M | $100M | $100M | $99M | $100M | $99M | $100M |
Compare EHC with 6 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| EHCYou | $11B | 19.4 | 10.1 | — | 47.5% | 12.8% | 18.5% | 12.7% | 0.2 |
| ENSG | $12B | 36.7 | 26.4 | 33.4 | 20.5% | 8.4% | 16.9% | 8.9% | 3.9 |
| BKD | $4B | -13.7 | 10.2 | 16.7 | 88.9% | 2.7% | -308.5% | 2.0% | 2.6 |
| NHC | $3B | 21.3 | 15.1 | 17.1 | 37.3% | 8.7% | 11.7% | 8.4% | 0.5 |
| SEM | $2B | 12.9 | 20.3 | 4.8 | 11.5% | 0.0% | 7.3% | 0.0% | 7.4 |
| PNTG | $1B | 40.1 | 26.7 | 24.3 | — | 5.5% | 8.6% | 5.7% | 7.5 |
| SNDA | $682M | -66.5 | 45.0 | — | 89.1% | -4.9% | -6.5% | -1.7% | 22.3 |
| Healthcare Median | — | 23.7 | 13.8 | 18.8 | 65.8% | -6.3% | -37.3% | -15.0% | 3.1 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonEncompass Health Corporation's current P/E ratio is 19.4x. The historical average is 19.1x. This places it at the 70th percentile of its historical range.
Encompass Health Corporation's current EV/EBITDA is 10.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
Encompass Health Corporation's return on equity (ROE) is 18.5%. The historical average is 23.7%.
Based on historical data, Encompass Health Corporation is trading at a P/E of 19.4x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Encompass Health Corporation's current dividend yield is 0.64%.
Encompass Health Corporation has 47.5% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Encompass Health Corporation's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.