EHC
Encompass Health Corporation
EHC's fundamentals are strong: revenue grew 9.4% and earnings per share grew 21%. At 22x earnings, it's trading right at its usual valuation. Analysts expect earnings growth.
EHC Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Healthy | |
| Healthy |
EHC's profitability, cash flow and balance sheet are currently healthy, and its revenue is stable.
EHC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 18x | $112 | -20% |
| Forward | 21x | $141 | — |
| Fair | 22x | $139 | -1.3% |
| Current | 22x | $141 | — |
| Expensive | 24x | $157 | +11% |
Historical ranges are pointers, not guarantees.
EHC's PE is in its fair range at 22x. If earnings grow as analysts expect, today's price would be 21x next year's earnings.
EHC Forward outlook
| Metric | Outlook |
|---|---|
| Stable | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for EHC, with profitability improving.
EHC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.72 | +4.9% |
| Q3 2026 | $6.40 | +21% |
| Q2 2026 | $6.14 | +20% |
| Q1 2026 | $5.99 | +24% |
| Q4 2025 | $5.54 | +24% |
| Q3 2025 | $5.29 | +28% |
| Q2 2025 | $5.11 | +30% |
| Q1 2025 | $4.84 | +31% |
| Q4 2024 | $4.46 | +29% |
EHC's earnings per share have climbed steadily: $6.40 over the past year, up 21% from the year before, and higher year over year for 13 quarters in a row.
EHC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.6B | +8.9% |
| Q2 2026 | $1.6B | +9.6% |
| Q1 2026 | $1.6B | +9% |
| Q4 2025 | $1.5B | +9.9% |
| Q3 2025 | $1.5B | +9.4% |
| Q2 2025 | $1.5B | +12% |
| Q1 2025 | $1.5B | +11% |
| Q4 2024 | $1.4B | +13% |
EHC's revenue has grown year over year for 13 quarters in a row: $1.6B last quarter, up 8.9% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 18% | +1.4 points |
| Q2 2026 | 18% | +0.3 points |
| Q1 2026 | 19% | +0.7 points |
| Q4 2025 | 18% | +1.8 points |
| Q3 2025 | 16% | +1 points |
| Q2 2025 | 18% | +1.2 points |
| Q1 2025 | 18% | +2.6 points |
| Q4 2024 | 17% | +1.3 points |
EHC's operating margin was 18% last quarter, up 1.4 points from the same quarter a year ago.
EHC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $127.5M | +52% |
| Q2 2026 | $62.3M | -45% |
| Q1 2026 | $150.7M | +20% |
| Q4 2025 | $116.7M | +46% |
| Q3 2025 | $83.7M | -30% |
| Q2 2025 | $113.3M | +87% |
| Q1 2025 | $125.5M | +26% |
| Q4 2024 | $80.1M | +$101.7M |
EHC generated $457M in free cash flow over the past year, up 14% from the year before.
EHC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.3% | -300K shares |
| 1 year | -2.5% | -2.6M shares |
| 3 years | -1.7% | -1.7M shares |
| 5 years | -0.5% | -500K shares |
| Available history | +0.3% | +300K shares |
EHC has 100M diluted shares, down 2.5% from a year ago, with $280M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $57.9M |
| Q2 2026 | $74.2M |
| Q1 2026 | $71.6M |
| Q4 2025 | $76.3M |
| Q3 2025 | $24.9M |
| Q2 2025 | $24.7M |
| Q1 2025 | $32.1M |
| Q4 2024 | $7.5M |
EHC spent $280M buying back its own shares over the past year, about three times what it spent the year before.
EHC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.7x | Healthy |
| Q2 2026 | 1.7x | Healthy |
| Q1 2026 | 1.7x | Healthy |
| Q4 2025 | 1.8x | Healthy |
| Q3 2025 | 1.8x | Healthy |
| Q2 2025 | 1.8x | Healthy |
| Q1 2025 | 1.9x | Healthy |
| Q4 2024 | 2.1x | Moderate |
EHC's net debt is about 1.7 years of its operating earnings (EBITDA), about the same as a year ago.
EHC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 72.7 | Overbought |
| Stochastic | 88.7 | Overbought |
EHC's weekly RSI is 73 (overbought) and its Stochastic is 89 (overbought).
EHC PE vs Healthcare Sector
| Metric | EHC | Sector median | Relative |
|---|---|---|---|
| PE | 22x | 26x | 15% below |
| PE % | 53 | 29 | 24 pts above |
EHC is trading at 22x earnings, a 15% discount to the Healthcare sector's median of 26x.
EHC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $129.1 | 9.1% above |
| 20 week MA | $122.0 | 15% above |
| 50 week MA | $111.1 | 27% above |
| 100 week MA | $111.2 | 27% above |
| 200 week MA | $93.1 | 51% above |
EHC is in an uptrend: it's above all five of its weekly moving averages, and 51% above its 200-week average.
EHC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $55.5 | $65.7 | +19% |
| 2021 | $65.7 | $51.0 | -22% |
| 2022 | $51.0 | $59.3 | +16% |
| 2023 | $59.3 | $66.7 | +13% |
| 2024 | $66.7 | $93.6 | +40% |
| 2025 | $93.6 | $107.5 | +15% |
| 2026 YTD | $107.5 | $140.8 | +31% |
EHC has finished higher in five of the last six years. It's up 31% so far in 2026.