# Encompass Health Corporation (EHC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Healthcare / Health Care Equipment & Supplies. Price $121.79, market value $12.0 billion.

## Valuation
- **P/E (trailing): 20.3×** (5-yr avg 18.4×, 3-yr avg 19.5×). Encompass Health Corporation trades at 20.3× trailing earnings, close to its own five-year average of 18.4×. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 18.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.75**. A PEG of 0.75 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 4.6×**. The shares trade at 4.6× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 3.4%** (5-yr avg 3.6%). Free cash flow equals 3.4% of the market value, in line with its five-year average of 3.6%.
- **Earnings yield: 4.9%**. The inverse of the P/E: 4.9% of the price is earned each year.

## Profitability
- **Net margin: 9.5%**. 9.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.2%**. 23.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 8.8%**. Each dollar of assets produces 8.8% of profit.

## Growth
- **Revenue growth (1 yr): 10.5%** (3-yr 10.9%/yr, 5-yr 10.7%/yr). Revenue grew 10.5% over the last year, against 10.7% a year compounded over five years.
- **EPS growth (1 yr): 24.2%** (3-yr 27.1%/yr, 5-yr 14.2%/yr). Earnings per share rose 24.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 46.0%/yr**. Free cash flow has compounded at 46.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.02**. Debt is 1.02 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Current ratio: 1.08** (quick 1.08). Current assets cover the next year's liabilities 1.08 times.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.69%** ($0.76 per share, trailing). Encompass Health Corporation yields 0.69%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 13%** (18% of free cash flow). 13% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): -4.7%/yr** (1-yr 48.9%). The dividend has not grown over five years.

## Price and momentum
- **Total return (1 yr): -1.5%** (YTD 15.4%, 3-mo 17.3%). The shares are down 1.5% over twelve months including dividends.
- **From 52-week high: -4.8%** (31.3% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 58**. An RSI of 58 is neutral.
- **Beta (1 yr): 0.07** (volatility 29%). Beta of 0.07 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=EHC · Page: https://foliofundamentals.com/stocks/ehc

Not investment advice.