# Encompass Health Corporation (EHC) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Healthcare / Health Care Providers. Price $134.79, market value $13.2 billion.

## Valuation
- **P/E (trailing): 21.6×** (5-yr avg 18.4×, 3-yr avg 19.5×). Encompass Health Corporation trades at 21.6× 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 19.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.81**. A PEG of 0.81 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 4.9×**. The shares trade at 4.9× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 3.1%** (5-yr avg 3.6%). Free cash flow equals 3.1% of the market value, in line with its five-year average of 3.6%.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% 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: 0.62%** ($0.78 per share, trailing). Encompass Health Corporation yields 0.62%, 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.

## Analyst view
- **Analyst consensus: strong_buy** (12 analysts). 12 analysts cover Encompass Health Corporation; the consensus is strong_buy, with an average price target of $156.08 (+16% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 21.2%** (YTD 30.0%, 3-mo 22.0%). The shares are up 21.2% over twelve months including dividends.
- **From 52-week high: -3.1%** (45.3% 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): 71**. An RSI of 71 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): -0.02** (volatility 30%). Beta of -0.02 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.