Encompass Health Corporation (EHC) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Medical - Care Facilities
EV/EBITDA
↓
8.95
-1% vs avg
5yr avg: 9.00
30Y Low1.3·High76.3
P/FCF
↓
22.19
↓-29% vs avg
5yr avg: 31.41
30Y Low3.2·High49.3
P/B Ratio
↑
3.06
+2% vs avg
5yr avg: 2.99
30Y Low0.5·High7.6
ROE
↓
18.5%
↓+9% vs avg
5yr avg: 16.9%
30Y Low-27%·High209%
Debt/EBITDA
↓
1.97
↓-25% vs avg
5yr avg: 2.63
30Y Low0.9·High19.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
EHC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Encompass Health Corporation trades at 17.7x earnings, 6% below its 5-year average of 18.8x, sitting at the 57th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a discount of 20%. On a free-cash-flow basis, the stock trades at 22.2x P/FCF, 29% below the 5-year average of 31.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.7B | $10.8B | $9.4B | $6.8B | $6.0B | $5.2B | $6.6B | $5.5B | $4.9B | $3.9B | $3.3B |
| Enterprise Value | $12.4B | $13.5B | $12.1B | $9.6B | $9.0B | $8.6B | $9.9B | $8.7B | $7.3B | $6.4B | $6.2B |
| P/E Ratio → | 17.69 | 19.16 | 20.71 | 19.23 | 22.15 | 12.63 | 23.07 | 15.26 | 16.74 | 14.61 | 12.66 |
| P/S Ratio | 1.64 | 1.83 | 1.76 | 1.41 | 1.38 | 1.30 | 1.84 | 1.19 | 1.14 | 1.00 | 0.90 |
| P/B Ratio | 3.06 | 3.31 | 3.31 | 2.94 | 3.23 | 2.17 | 3.28 | 2.83 | 2.62 | 2.37 | 3.06 |
| P/FCF | 22.19 | 24.70 | 26.20 | 25.25 | 49.34 | 31.59 | 22.13 | 23.68 | 9.95 | 9.47 | 8.10 |
| P/OCF | 8.29 | 9.23 | 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
EHC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Encompass Health Corporation's enterprise value stands at 8.9x EBITDA, roughly in line with its 5-year average of 9.0x. The Healthcare sector median is 14.2x, placing the stock at a 37% 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 | — | 2.27 | 2.25 | 2.00 | 2.06 | 2.15 | 2.77 | 1.90 | 1.72 | 1.64 | 1.71 |
| EV / EBITDA | 8.95 | 9.75 | 10.37 | 4.80 | 10.27 | 9.82 | 13.36 | 9.58 | 8.33 | 7.71 | 7.59 |
| EV / EBIT | 11.73 | 12.51 | 13.60 | 13.10 | 14.33 | 12.90 | 18.41 | 12.09 | 11.46 | 9.87 | 9.54 |
| EV / FCF | — | 30.64 | 33.49 | 35.81 | 73.75 | 52.44 | 33.33 | 37.75 | 14.92 | 15.59 | 15.50 |
EHC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Encompass Health Corporation earns an operating margin of 17.7%. Operating margins have compressed from 35.9% to 17.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 18.5% indicates solid capital efficiency. ROIC of 13.9% represents solid returns on invested capital.
Margins
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 | 95.7% | 95.7% | 41.6% | 41.3% | 40.3% | 42.4% | 95.2% | 96.4% | 96.3% | 96.2% | 96.2% |
| Operating Margin | 17.7% | 17.7% | 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% |
Return on Capital
| 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 | 13.9% | 13.9% | 12.2% | 26.0% | 8.9% | 8.9% | — | 10.9% | 12.0% | 11.9% | 12.1% |
| ROCE | 17.6% | 17.6% | 15.5% | 32.8% | 11.3% | 11.1% | — | 14.0% | 15.3% | 15.1% | 15.5% |
EHC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Encompass Health Corporation carries a Debt/EBITDA ratio of 2.0x, which is manageable (39% below the sector average of 3.2x). Net debt stands at $2.6B ($2.7B total debt minus $103M cash). Interest coverage of 8.7x 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 | 0.83 | 0.83 | 0.95 | 1.28 | 1.61 | 1.45 | 1.77 | 1.73 | 1.34 | 1.57 | 2.83 |
| Debt / EBITDA | 1.97 | 1.97 | 2.33 | 1.47 | 3.42 | 3.96 | 4.79 | 3.67 | 2.85 | 3.09 | 3.67 |
| Net Debt / Equity | — | 0.80 | 0.92 | 1.23 | 1.60 | 1.43 | 1.66 | 1.68 | 1.31 | 1.53 | 2.79 |
| Net Debt / EBITDA | 1.89 | 1.89 | 2.26 | 1.42 | 3.40 | 3.90 | 4.49 | 3.57 | 2.77 | 3.03 | 3.62 |
| Debt / FCF | — | 5.94 | 7.30 | 10.57 | 24.41 | 20.85 | 11.19 | 14.07 | 4.97 | 6.12 | 7.39 |
| Interest Coverage | 8.74 | 8.74 | 6.46 | 5.10 | 3.57 | 4.07 | 2.92 | 4.52 | 4.35 | 4.22 | 3.80 |
EHC Liquidity & Efficiency
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 | 0.17 | 0.17 | 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 | 2.39 | 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 |
EHC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Encompass Health Corporation returns 2.3% to shareholders annually — split between a 0.7% dividend yield and 1.6% buyback yield. The payout ratio of 12.6% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 5.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 0.7% | 0.7% | 0.7% | 0.9% | 1.6% | 2.2% | 1.7% | 2.0% | 2.1% | 2.3% | 2.6% |
| Payout Ratio | 12.6% | 12.6% | 13.8% | 17.2% | 36.5% | 27.2% | 39.4% | 30.3% | 34.5% | 33.8% | 33.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 5.2% | 4.8% | 5.2% | 4.5% | 7.9% | 4.3% | 6.6% | 6.0% | 6.8% | 7.9% |
| FCF Yield | 4.5% | 4.0% | 3.8% | 4.0% | 2.0% | 3.2% | 4.5% | 4.2% | 10.0% | 10.6% | 12.3% |
| Buyback Yield | 1.6% | 1.5% | 0.3% | 0.1% | 0.1% | 0.3% | 0.1% | 0.8% | 1.3% | 1.0% | 2.0% |
| Total Shareholder Yield | 2.3% | 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 |
Peer Comparison
Compare EHC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 EHCYou | $10B | 17.7 | 8.9 | 22.2 | 95.7% | 17.7% | 18.5% | 13.9% | 2.0 |
 USPH | $964M | 44.6 | 13.2 | 15.8 | 20.1% | 10.3% | 2.0% | 5.6% | 4.1 |
 SEM | $2B | 14.0 | 12.1 | 5.4 | 11.5% | 6.1% | 7.3% | 4.8% | 7.8 |
 ENSG | $9B | 26.3 | 23.5 | 24.2 | 13.7% | 8.6% | 16.9% | 7.0% | 7.7 |
 ACHC | $2B | -2.0 | 8.3 | — | 17.6% | 11.7% | -41.4% | 5.9% | 4.6 |
 UHS | $9B | 6.1 | 5.4 | 10.4 | 90.4% | 11.5% | 21.0% | 12.3% | 2.1 |
 THC | $15B | 11.1 | 5.9 | 6.0 | 82.3% | 16.1% | 16.1% | 13.2% | 3.1 |
 HCA | $84B | 13.2 | 8.6 | 10.9 | 41.5% | 15.8% | — | 19.9% | 3.2 |
 CYH | $426M | 0.8 | — | 2.0 | 8.7% | -79.4% | — | -70.1% | — |
 UNH | $364B | 30.3 | 17.9 | 22.6 | 18.5% | 4.2% | 11.8% | 9.2% | 3.4 |
 HUM | $43B | 36.7 | 22.9 | 115.5 | 14.5% | 1.1% | 7.0% | 4.1% | 5.7 |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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EHC — Frequently Asked Questions
Quick answers to the most common questions about buying EHC stock.
What is Encompass Health Corporation's P/E ratio?
Encompass Health Corporation's current P/E ratio is 17.7x. The historical average is 19.1x. This places it at the 57th percentile of its historical range.
What is Encompass Health Corporation's EV/EBITDA?
Encompass Health Corporation's current EV/EBITDA is 8.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.8x.
What is Encompass Health Corporation's ROE?
Encompass Health Corporation's return on equity (ROE) is 18.5%. The historical average is 23.7%.
Is EHC stock overvalued?
Based on historical data, Encompass Health Corporation is trading at a P/E of 17.7x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Encompass Health Corporation's dividend yield?
Encompass Health Corporation's current dividend yield is 0.71% with a payout ratio of 12.6%.
What are Encompass Health Corporation's profit margins?
Encompass Health Corporation has 95.7% gross margin and 17.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Encompass Health Corporation have?
Encompass Health Corporation's Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.