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Encompass Health Corp (EHC) stock

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NYSE: EHC NYSE Hospitals Next results ~February 4, 2027

B Fundamentals grade

Encompass Health Corp is a US-listed company in the hospitals industry. Its financial year ends in December.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$81

Cash-flow model

Base case. Range ~$52–$120 across our lower- and higher-growth cases (5.1%–15.1% a year).

Price vs value

Overvalued

The price is above our entire value range; our base value is 41% below it.

Price used: $137.19, November 2, 2026

Encompass Health Corp valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

  • Insiders0 buying, 6 selling0 purchases and 18 sales by directors and officers, last 12 monthsInsider trades
  • Funds280 adding, 262 cuttingOf 71 active managers that changed their stake, 37 added; quarter to June 30, 2026Fund buyers and sellers

Value diary

Our note on each quarter Encompass Health files

Where Encompass Health stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $6.21bn, up 9.5% on a year earlier, slower than 10.0% a quarter earlier. Free-cash-flow margin fell to 6.7% from 7.7% a year earlier. Against its peers on growth, profitability, cash generation and balance sheet, it grades C. It passes 1 of our 2 financial-health checks. Our cash-flow model value is $75.77 a share, against a share price of $120. At that price, our model says the market is pricing in about 17.8% a year of cash-flow growth for five years, faster than the 9.1% a year revenue growth it has delivered.

Source: 10-Q filed August 7, 2026 on SEC EDGAR · Financials · Valuation

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~February 4, 2027 (estimated)

Encompass Health Corp's trailing-twelve-month revenue grew 9.5% year on year, with a free-cash-flow margin of 6.7%. Where it stands out: revenue growth of 9.5% ranks 1 of 5 hospitals companies we cover.

Our discounted-cash-flow model values the business at ~$81 per share in the base case (~$52–$120 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Free cash flow diverging from earnings: TTM free cash flow fell 5.9% while net income grew 18.8%: a 25pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Beating expectations. Earnings per share beat the analysts' consensus estimate in each of the last four quarters.

Things to watch

  • Priced above our value. The share price of $137.19 is 41% above our value per share of $81.
  • Insiders selling. 6 insiders sold $48M of stock over the past 365 days and none bought (0% under pre-set trading plans).
  • Weak cash conversion. Free cash flow was 67% of net income over the last 12 months.

Latest results: FY2026 Q2

Filed August 7, 2026
Earnings per share
$1.55 against an average estimate of $1.48: beat by 4.8%
Revenue
$1.60bn, up 9.6% on a year earlier
Share reaction
+8.2% in the first session after the results on October 28, 2026, against 0.0% for the S&P 500
Guidance given
net operating revenue $6,450m to $6,500m (Full-Year 2026 Guidance); adjusted EBITDA $1,395m to $1,415m (Full-Year 2026 Guidance)
Next report
October 28, 2026; average EPS estimate $1.36

Encompass Health's figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day+0.9%
  • 1 week+10.5%
  • 1 month+14.5%
  • This year+30.2%
  • 1 year+21.4%
  • 5 years+189.1%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

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Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$6.2B
Net margin
10.0%
EPS (TTM, diluted)
$6.13

Growth

Revenue growth
+9.5%
Change in growth rate
−0.6 pts
Share count change
−1.0%

Cash

Free cash flow (TTM)
$413M
FCF margin
6.7%
Stock pay % of revenue
0.9%

Earnings

Last results
October 28, 2026
Next results (est.)
February 4, 2027

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Results
  2. Guidance
  3. Product
  4. Announcement
  5. Dividend
  6. Leadership
  7. Announcement
  8. Results
  9. Product
  10. Announcement
  11. Announcement
  12. Financing
  13. Financing
  14. Insider trade
  15. Insider trade
  16. Insider trade
  17. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Encompass Health Corp valuation models and calculator

What the price is pricing in

The share price implies about 16.9% a year of cash-flow growth for five years.That is faster than the 9.1% a year revenue growth Encompass Health has delivered.

  • Priced in16.9%
  • Last 12 months9.5%
  • 3 years a year10.7%
  • 5 years a year9.1%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($136.38, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Sell12-month view
12-month price target
~$81
Price used
$136.38close November 3, 2026
Implied change
▼ 41%
Uncertainty
High

How we got here: a discounted-cash-flow model of Encompass Health Corp's free cash flow after stock-based pay with after-tax interest added back ($445M, FY2026 Q2 TTM), growing 8.8% and 9.5% in the next two years (forecasts, guidance and its record), then back to 10.1% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$52–~$120 ; that spread sets a 35% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Encompass Health Corp's free cash flow after stock-based pay ( $445M, FY2026 Q2 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Encompass Health Corp as an operating company, with every model that fits that kind of business. Cost of equity 8.7%: the 10-year Treasury yield (4.9%) plus a beta of 0.83 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$81 ~$52–$120 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. — Does not apply: fewer than 5 peers with a usable multiple
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. ~$110 ~$75–$150 Included
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$87 ~$74–$110 Included
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$88 ~$81–$110 3 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Encompass Health Corp with Health Care sector in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −33%
  • Revenue growth 5 points higher ▲ +43%
  • Free-cash-flow margin 1 point lower ▼ −16%
  • Last year's free-cash-flow margin change, if it persists ▼ −15%
  • Discount rate 1 point higher ▼ −20%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $30$53$84$124$176$244
8.5% $15$32$54$83$120$168
10% $6$19$36$58$86$123

Valuation multiples over time Market data may be delayed

At fiscal year end 2016201720182019202020212022202320242025Now
Share price$28.79$35.23$44.70$51.07$62.01$49.67$58.12$65.45$91.09$105.36$137.19
Market value$2.9bn$3.5bn$4.5bn$5.1bn$6.2bn$5.0bn$5.8bn$6.6bn$9.3bn$10.8bn$13.9bn
+ Net debt (− = net cash)$3.0bn$2.5bn$2.4bn$3.0bn$3.1bn$3.2bn$2.7bn$2.6bn$2.4bn$2.4bn$2.5bn
Enterprise value$5.8bn$6.0bn$6.9bn$8.1bn$9.3bn$8.2bn$8.6bn$9.3bn$11.7bn$13.2bn$16.4bn
Multiples
Price / sales 0.8x0.9x1.0x1.1x1.7x1.2x1.3x1.4x1.7x1.8x2.2x
Price / earnings 11.6x12.9x15.3x14.2x21.8x12.1x21.5x18.8x20.4x19.0x22.4x
Price / free cash flow 6.2x8.1x8.8x19.3x19.8x26.0x41.4x24.8x25.8x24.5x33.6x
EV / EBITDA 7.7x7.9x9.1x9.7x12.1x10.5x11.0x————

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

63 /100

Moderate moat

How hard Encompass Health's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 7 / 20

    Net income has been a median 5.6% of total assets over 10 years.

  • Durability 13 / 20

    Operating margin has been a median 13.1%; its worst year was 12.1%.

  • Cash conversion 13 / 20

    Free cash flow was positive in 9 of 9 years, at a median 6.7% of revenue.

  • Discipline 16 / 20

    The diluted share count rose 1.2% over five years; stock-based pay has been a median 0.9% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $6.11 +12% $6.5bn +9%
Next $6.68 +9% $7.0bn +8%

Next year's EPS estimate has moved +2.2% in 90 days, across 13 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is +1.8% on 90 days ago. In the last 30 days, 0 analysts raised Encompass Health Corp's forecast and 1 cut it.

Consensus EPS forecast Encompass Health Corp, last 90 days
$6.00 $6.20 $6.40 $6.60 $6.80 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $6.00 Current fiscal year, 60 days ago: $6.11 Current fiscal year, 30 days ago: $6.11 Current fiscal year, 7 days ago: $6.11 Current fiscal year, Now: $6.11 $6.11 Next fiscal year, 90 days ago: $6.54 Next fiscal year, 60 days ago: $6.68 Next fiscal year, 30 days ago: $6.68 Next fiscal year, 7 days ago: $6.68 Next fiscal year, Now: $6.68 $6.68

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $6.00$6.54
60 days ago $6.11$6.68
30 days ago $6.11$6.68
7 days ago $6.11$6.68
Now $6.11$6.68

Earnings against estimates

Quarter toEstimateActualSurprise
Jun 2026 $1.48 $1.55 +4.8%
Mar 2026 $1.49 $1.60 +7.1%
Dec 2025 $1.30 $1.46 +12.1%
Sept 2025 $1.19 $1.23 +3.2%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, October 28, 2026
  • Net operating revenue Full-Year 2026 Guidance $6,450m to $6,500m Raised
    “Net operating revenue $6,410 to $6,490 $6,450 to $6,500” source
  • Adjusted earnings per share from continuing operations attributable to Encompass Health Full-Year 2026 Guidance $6.23 to $6.37 Non-GAAP Raised
    “Adjusted earnings per share from continuing operations attributable to Encompass Health $6.02 to $6.25 $6.23 to $6.37” source
  • Adjusted EBITDA Full-Year 2026 Guidance $1,395m to $1,415m Non-GAAP Raised
    “Adjusted EBITDA $1,365 to $1,395 $1,395 to $1,415” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows Encompass Health Corp's revenue by +8.8% next year and +9.5% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+8.4%, weight 46%) , management guidance (+8.6%, weight 32%) and the company's own record (+10.1%, weight 21%) . How the weights are set.

Analyst recommendations

13 analysts, Oct 2026
Buy13100%
Hold00%
Sell00%

Monthly trend

  1. Oct 202611213
  2. Sep 202611213
  3. Aug 202611213
  4. Jul 202611213

Counts of recommendations published by analysts covering Encompass Health Corp, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
3.8%
of tradable shares
Days to cover
3.47
at average volume
Short interest, 1 month
+10%
to October 15, 2026
Held by institutions
—
of shares
Held by insiders
0.9%
of shares
Employees
29,699
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months +21.4%

$113.01 on October 31, 2025 to $137.19

ThenNowEffect
Revenue (last 12 months) $5.7bn $6.2bn +9.5%
Net margin 9.2% 10.0% +8.5%
P/E multiple 22.1x 22.4x +1.2%
Share count 102m 101m +1.0%

Biggest factor: revenue.

Last 3 years +118.8%

$62.71 on November 3, 2023 to $137.19

ThenNowEffect
Revenue (last 12 months) $4.6bn $6.2bn +35.7%
Net margin 6.9% 10.0% +45.8%
P/E multiple 20.1x 22.4x +11.1%
Share count 101m 101m −0.5%

Biggest factor: net margin.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
EHC−20%+17%+13%+39%+16%+30%
Industry peers (median)+79%−45%−28%+41%+31%+34%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
EHC50%50%50%83%75%73%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
EHC−36%−27%−18%−11%−17%−16%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 2, 2015: 40% from February 19, 2020 to March 23, 2020. Getting back needed a 65% gain, reached on November 24, 2020, 246 days after the low.

Price behaviour

52-week range
$93.31 – $137.19
From 52-week high
0.0%
vs 50-day average
+11.5%
vs 200-day average
+24.8%
Volatility (1 year)
30%
Beta vs S&P 500
-0.09

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
9 up, 3 down
typical move ±6.8%
After a week
8 up, 3 down
typical move ±7.6%
After a month
9 up, 2 down
typical move ±8.0%
Results releasedNext dayS&P 500 next day5 days21 days
October 28, 2026 +8.2% 0.0% — —
August 5, 2026 +13.0% −0.4% +13.0% +10.9%
April 30, 2026 +4.7% +1.3% +4.4% +0.1%
February 5, 2026 +10.2% +0.6% +17.1% +13.5%
October 29, 2025 −7.5% −1.1% −8.7% −8.0%
August 4, 2025 +4.9% +1.0% +8.2% +13.9%
April 24, 2025 +12.6% +2.8% +15.1% +18.0%
February 6, 2025 −2.3% −0.6% −2.0% −3.0%
October 28, 2024 +7.0% +0.5% +7.2% +11.0%
August 5, 2024 −8.7% −2.0% −6.3% +1.0%
April 24, 2024 +0.3% −0.4% +0.5% +2.5%
February 7, 2024 +1.7% +0.9% +1.6% +5.9%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Encompass Health Corp’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Cash-secured put

Not offered: rated Sell.

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

EHC Encompass Health Corp Grade B $137.25

Own 100 shares, sell the $145 call expiring December 18, 2026 (46 days) for $2.40 a share — $240 per contract.

Previous session · Bid $2.40, ask $3.20, quoted Mon 2 Nov, 17:22 New York time with EHC at $137.25. Option prices move with the shares: check the live chain at your broker before trading.

  • If EHC ends below $145: you keep your shares and the $240 — 1.8% extra on the position, 13.9% a year at that pace.
  • If it ends above $145: your shares are sold at $145, a total return of 7.4% including the premium — at or above our value of ~$81.
$1.0k $0 −$2.7k Break-even $134.85 Price $137.25 ← Our value ~$81
Profit or loss per contract at expiry, by share price (including the shares bought at today's price).
Premium
$240
Annualised
13.9%
Break-even
$134.85
Max gain
$1,015
Chance of selling
~35%

Collar

Not offered: no liquid put and call pair for the same expiry.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Encompass Health Corp in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Encompass Health Corp
$4.5B $5B $5.5B $6B $6.5B FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 Revenue (TTM), FY23 Q3: $4.7B Revenue (TTM), FY23 Q4: $4.8B Revenue (TTM), FY24 Q1: $5B Revenue (TTM), FY24 Q2: $5.1B Revenue (TTM), FY24 Q3: $5.2B Revenue (TTM), FY24 Q4: $5.4B Revenue (TTM), FY25 Q1: $5.5B Revenue (TTM), FY25 Q2: $5.7B Revenue (TTM), FY25 Q3: $5.8B Revenue (TTM), FY25 Q4: $5.9B Revenue (TTM), FY26 Q1: $6.1B Revenue (TTM), FY26 Q2: $6.2B $6.2B

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue (TTM)
FY23 Q3 $4.7B
FY23 Q4 $4.8B
FY24 Q1 $5B
FY24 Q2 $5.1B
FY24 Q3 $5.2B
FY24 Q4 $5.4B
FY25 Q1 $5.5B
FY25 Q2 $5.7B
FY25 Q3 $5.8B
FY25 Q4 $5.9B
FY26 Q1 $6.1B
FY26 Q2 $6.2B
Revenue growth, TTM YoY Encompass Health Corp
9% 10% 11% 12% FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 Revenue growth, TTM YoY, FY23 Q3: 10.3% Revenue growth, TTM YoY, FY23 Q4: 10.4% Revenue growth, TTM YoY, FY24 Q1: 11.4% Revenue growth, TTM YoY, FY24 Q2: 10.9% Revenue growth, TTM YoY, FY24 Q3: 11.2% Revenue growth, TTM YoY, FY24 Q4: 11.9% Revenue growth, TTM YoY, FY25 Q1: 11.2% Revenue growth, TTM YoY, FY25 Q2: 11.8% Revenue growth, TTM YoY, FY25 Q3: 11.1% Revenue growth, TTM YoY, FY25 Q4: 10.5% Revenue growth, TTM YoY, FY26 Q1: 10.0% Revenue growth, TTM YoY, FY26 Q2: 9.5% 9.5%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q3 10.3%
FY23 Q4 10.4%
FY24 Q1 11.4%
FY24 Q2 10.9%
FY24 Q3 11.2%
FY24 Q4 11.9%
FY25 Q1 11.2%
FY25 Q2 11.8%
FY25 Q3 11.1%
FY25 Q4 10.5%
FY26 Q1 10.0%
FY26 Q2 9.5%
Operating margin (TTM) Encompass Health Corp
11% 12% 13% 14% 15% FY20 Q1 FY20 Q4 FY21 Q3 FY22 Q4 Operating margin (TTM), FY20 Q1: 13.0% Operating margin (TTM), FY20 Q2: 11.7% Operating margin (TTM), FY20 Q3: 11.6% Operating margin (TTM), FY20 Q4: 12.1% Operating margin (TTM), FY21 Q1: 12.4% Operating margin (TTM), FY21 Q2: 14.0% Operating margin (TTM), FY21 Q3: 14.3% Operating margin (TTM), FY21 Q4: 13.9% Operating margin (TTM), FY22 Q1: 13.3% Operating margin (TTM), FY22 Q2: 12.7% Operating margin (TTM), FY22 Q3: 12.1% Operating margin (TTM), FY22 Q4: 12.4% 12.4%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Operating margin (TTM)
FY20 Q1 13.0%
FY20 Q2 11.7%
FY20 Q3 11.6%
FY20 Q4 12.1%
FY21 Q1 12.4%
FY21 Q2 14.0%
FY21 Q3 14.3%
FY21 Q4 13.9%
FY22 Q1 13.3%
FY22 Q2 12.7%
FY22 Q3 12.1%
FY22 Q4 12.4%
FCF margin (TTM) Encompass Health Corp
4% 5% 6% 7% 8% FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 FCF margin (TTM), FY23 Q3: 5.8% FCF margin (TTM), FY23 Q4: 5.6% FCF margin (TTM), FY24 Q1: 4.8% FCF margin (TTM), FY24 Q2: 4.1% FCF margin (TTM), FY24 Q3: 5.0% FCF margin (TTM), FY24 Q4: 6.7% FCF margin (TTM), FY25 Q1: 7.0% FCF margin (TTM), FY25 Q2: 7.7% FCF margin (TTM), FY25 Q3: 6.9% FCF margin (TTM), FY25 Q4: 7.4% FCF margin (TTM), FY26 Q1: 7.7% FCF margin (TTM), FY26 Q2: 6.7% 6.7%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q3 5.8%
FY23 Q4 5.6%
FY24 Q1 4.8%
FY24 Q2 4.1%
FY24 Q3 5.0%
FY24 Q4 6.7%
FY25 Q1 7.0%
FY25 Q2 7.7%
FY25 Q3 6.9%
FY25 Q4 7.4%
FY26 Q1 7.7%
FY26 Q2 6.7%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Jun 2026
Income
Revenue 3,643 3,914 4,277 4,605 3,566 4,015 4,349 4,801 5,373 5,935 6,206
EBITDA 761 762 755 831 767 779 783 — — — —
Operating income 588 578 555 612 564 560 540 — — — —
Net income 248 271 292 359 284 412 271 352 456 566 621
Diluted EPS $2.59 $2.84 $2.93 $3.61 $2.85 $4.11 $2.70 $3.47 $4.46 $5.54 $6.13
Growth (year on year)
Revenue — +7.4% +9.3% +7.7% −22.6% +12.6% +8.3% +10.4% +11.9% +10.5% +9.5%
EBITDA — +0.2% −0.9% +10.1% −7.7% +1.6% +0.5% — — — —
Operating income — −1.7% −4.0% +10.2% −7.9% −0.8% −3.6% — — — —
Net income — +9.5% +7.8% +22.7% −20.8% +45.0% −34.3% +29.9% +29.5% +24.2% +18.8%
Diluted EPS — +9.7% +3.2% +23.2% −21.1% +44.2% −34.3% +28.5% +28.5% +24.2% +20.0%
Margins
EBITDA margin 20.9% 19.5% 17.6% 18.0% 21.5% 19.4% 18.0% — — — —
Operating margin 16.1% 14.8% 13.0% 13.3% 15.8% 13.9% 12.4% — — — —
Net margin 6.8% 6.9% 6.8% 7.8% 8.0% 10.3% 6.2% 7.3% 8.5% 9.5% 10.0%
Free-cash-flow margin 12.7% 11.1% 11.9% 5.7% 8.7% 4.8% 3.2% 5.6% 6.7% 7.4% 6.7%
Cash flow
Cash from operations 640 658 762 635 705 716 706 851 1,003 1,176 1,213
Capital spending 178 226 255 372 393 525 565 583 643 736 799
Free cash flow 463 433 508 263 312 191 141 268 360 439 413
Stock-based pay 27 48 86 114 26 29 29 51 48 57 58
Free cash flow after stock pay 435 385 422 149 286 162 112 217 312 383 355
Balance sheet
Cash 41 54 69 60 186 49 22 69 85 72 108
Total debt 3,016 2,578 2,514 3,063 3,289 3,278 2,767 2,713 2,498 2,491 2,634
Net debt (negative = net cash) 2,976 2,523 2,445 3,003 3,103 3,229 2,745 2,644 2,412 2,419 2,526
Diluted shares 100m 99m 100m 99m 100m 100m 100m 101m 102m 102m 101m
Returned to shareholders
Dividends 84 92 101 109 112 112 99 60 63 71 75
Buybacks 66 38 0 46 6 0 0 0 31 158 247
Total returned 149 130 101 155 118 112 99 60 94 229 322

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

3 of 6 checks passed · June 30, 2026
What it owns · $7.5bn
Short-term assets $1.0bnLonger-term assets $6.4bn
What it owes, and who funded it · $6.6bn
Short-term liabilities $873mLonger-term liabilities $3.1bnShareholders' equity $2.6bn
  • Short-term assets cover short-term liabilities $1.0bn of assets due within a year against $873m of liabilities due within a year.
  • Short-term assets cover long-term liabilities $1.0bn short-term assets against $3.1bn of longer-dated liabilities.
  • More cash than debt $108m of cash against $2.6bn of debt.
  • Debt below 40% of shareholders' equity Debt is 100% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 170% to 100% over five years.
  • A year's operating cash flow covers at least 20% of debt $1.2bn of operating cash flow against $2.6bn of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Encompass Health Corp's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2026 Q2 TTM
Buybacks (TTM)
$247M
Dividends (TTM)
$75.2M
Returned to shareholders
78%
of free cash flow
Buybacks, last 3 fiscal years
$189M
Diluted share count
−1.0%
year over year
Total shareholder yield
2.4%
dividends 0.6% + buybacks 1.8% of market value
Dividend payout ratio
12%
of net income paid out
Days sales outstanding
38 days
receivables vs revenue

Competitors: side by side with peers

Closest by revenue in hospitals
Last 12 months unless stated EHC ARDT CYH MD THC Median
Revenue, last 12 months $6.2bn $6.4bn $11.7bn $2.0bn $22.2bn $6.4bn
Revenue growth, last 12 months 9.5% 3.3% −7.8% 1.9% 6.2% 3.3%
Revenue growth, 3-year average 10.7% — −2.2% −0.9% 3.2% 1.2%
Revenue growth, latest quarter 9.6% −1.4% −10.7% 1.7% 6.5% 1.7%
Operating margin 12.4% — 10.9% 10.9% 24.4% 11.6%
Operating margin, 3-year average 12.8% — 8.7% 3.4% 23.0% 10.7%
Net margin 10.0% 1.2% 0.3% 7.7% 13.1% 7.7%
Cash from operations / revenue 19.5% 8.0% 1.8% 11.6% 19.1% 11.6%
Free-cash-flow margin 6.7% 5.5% −1.0% 10.7% 15.0% 6.7%
Free-cash-flow margin, 3-year average 6.2% 3.3% 0.0% 10.2% 11.2% 6.2%
Stock pay / revenue 0.9% — 0.1% 1.1% 0.6% 0.8%
Change in share count −1.0% 1.3% 1.5% −2.8% −8.4% −1.0%

Median of all 5 companies we cover in hospitals. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

5 hospitals companies
Measure Company Peer median Rank
Revenue growth Growth 9.5% 3.3% 1 of 5
Change in growth rate Growth -0.6pp -0.6pp 3 of 5
Net margin Profitability 10.0% 7.7% 2 of 5
Free-cash-flow margin Cash generation 6.7% 6.7% 3 of 5
Long-term debt as % of assets Balance sheet 34.8% 34.8% 3 of 5
Change in share count Balance sheet -1.0% -1.0% 3 of 5
Days sales outstanding Balance sheet 38 days 43 days 1 of 5

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to December 31, 2025
Products and services
Line of business Revenue Share YoY
Inpatient $5.8B 97.0% ▲ 10.1%
Other $179M 3.0% ▲ 25.4%

From Encompass Health Corp's 10-K filed February 26, 2026, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$9.5B
Institutions reporting
593
Shares held vs prior quarter
▼ 0.9%
Positions opened / closed
57 / 40

Top buyers and sellers, Q2 2026: 280 institutions bought and 262 sold ; the biggest buyer was Citadel Advisors LLC (+2.1M shares) and the biggest seller T. Rowe Price Investment Management, Inc (−3.1M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Blackrock, Inc. $1.1B 10.5M 11.1% ▼ 2.6%
Price T Rowe Associates Inc $511M 5.1M 5.4% ▲ 9.9%
Vanguard Portfolio Management LLC $498M 4.9M 5.2% ▼ 0.7%
Vanguard Capital Management LLC $452M 4.5M 4.7% ▲ 0.2%
Wellington Management Group LLP $331M 3.3M 3.5% ▼ 14.8%
State Street Corp $322M 3.2M 3.4% ▲ 1.3%
Citadel Advisors LLC $259M 2.6M 2.7% ▲ 400.7%
Fuller & Thaler Asset Management, Inc. $249M 2.5M 2.6% ▲ 10.3%
Alliancebernstein L.P. $239M 2.5M 2.5% ▼ 5.7%
Two Sigma Investments, LP $229M 2.3M 2.4% ▲ 2.1%
Geode Capital Management, LLC $191M 1.9M 2.0% ▼ 0.4%
Dimensional Fund Advisors LP $176M 1.7M 1.8% ▲ 4.1%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Encompass Health Corp's complete shareholder register. Values are as reported by the filers ; 2 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $0 0 trades by 0 insiders, last 12 months Insider sales History → $47.8M 18 trades by 6 insiders · 0% under pre-set plans
Net ▼ $47.8M net selling
Insider Date Trade Shares Price Value
Darby John Patrick EVP, Gen Counsel & Secretary August 31, 2026 Sell 4,858 $121.09 $588,255
Price Andrew L Chief Accounting Officer August 31, 2026 Sell 5,211 $120.93 $630,166
Darby John Patrick EVP, Gen Counsel & Secretary August 10, 2026 Sell 8,906 $125.95 $1.1M
Tarr Mark J President & CEO August 10, 2026 Sell 1,579 $126.06 $199,049
Tarr Mark J President & CEO August 10, 2026 Sell 171,569 $125.46 $21.5M
Coltharp Douglas E EVP & Chief Financial Officer August 10, 2026 Sell 18,869 $125.38 $2.4M
Coltharp Douglas E EVP & Chief Financial Officer May 15, 2026 Sell 27,693 $106.83 $3M
Coltharp Douglas E EVP & Chief Financial Officer May 15, 2026 Sell 1 $107.28 $107
Tuer Patrick William EVP, Chief Operating Officer May 11, 2026 Sell 682 $104.56 $71,310
Fay Edmund Sr. Vice Pres. and Treasurer March 9, 2026 Sell 11,937 $107.00 $1.3M
Tarr Mark J President & CEO February 11, 2026 Sell 213 $113.58 $24,193
Tarr Mark J President & CEO February 11, 2026 Sell 87,745 $113.09 $9.9M

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 9 trades and filings

No trades in Encompass Health Corp disclosed in the last 12 months; 9 earlier trades on record.

  • Lisa C. McClain(R-MI 9):Sale (full), $1,001 - $15,000, traded October 31, 2025, filed November 21, 2025
  • Lisa C. McClain(R-MI 9):Purchase, $1,001 - $15,000, traded October 30, 2025, filed November 21, 2025
  • Lisa C. McClain(R-MI 9):Sale (full), $1,001 - $15,000, traded October 30, 2025, filed November 21, 2025

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around February 4, 2027 estimated from the company's past filing pattern, not announced

  • October 28, 2026
  • August 5, 2026
  • April 30, 2026
  • February 5, 2026
  • October 29, 2025
  • August 4, 2025

Recent SEC filings

Data status

When each part of this page on Encompass Health Corp was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Encompass Health Corp in brief

What does Encompass Health Corp do?
Encompass Health Corp is a US-listed company in the hospitals industry. Its financial year ends in December.
What is Encompass Health Corp's stock ticker?
Encompass Health Corp trades under the ticker EHC on NYSE. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Encompass Health Corp's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Encompass Health Corp reported revenue of $6.2B, 9.5% higher than a year earlier, according to its SEC filings.
What is Encompass Health Corp's free cash flow?
Encompass Health Corp's free-cash-flow margin is 6.7% of revenue over the trailing twelve months, ranking 3 of the 5 hospitals companies we cover.
What is Encompass Health Corp's fair value (intrinsic value) per share?
Our discounted-cash-flow model of Encompass Health Corp's free cash flow after stock-based pay gives ~$81 per share in the base case, and ~$52–$120 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Encompass Health Corp's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Blackrock, Inc., Price T Rowe Associates Inc and Vanguard Portfolio Management LLC. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
Is Encompass Health Corp buying back stock, and does it pay a dividend?
Encompass Health Corp spent $247M on share repurchases over the trailing twelve months, and its diluted share count fell 1.0% over the year.
What is Encompass Health Corp's market cap?
On November 2, 2026, Encompass Health Corp's market capitalisation was about $13.9B, with a price-to-earnings ratio of 22.4 and net debt of $2.5B. Market figures come from third-party market data and may be delayed.
Does Encompass Health Corp pay a dividend?
Yes: Encompass Health Corp paid $75.2M in dividends over the trailing twelve months, a dividend yield of 0.55% and a payout ratio of 12.1%.
How much debt does Encompass Health Corp have?
Encompass Health Corp's debt-to-equity ratio is 100.0%, from its latest balance sheet (169.5% five years earlier). The financial health section below sets out its other solvency checks.
Who are Encompass Health Corp's competitors?
In our Hospitals peer group, the companies closest to Encompass Health Corp are Ardent Health, Inc., Community Health Systems Inc, Pediatrix Medical Group, Inc. and Tenet Healthcare Corp. The side-by-side comparison below sets their revenue, margins and growth against Encompass Health Corp's.
Are insiders buying or selling Encompass Health Corp stock?
Over the last 12 months, Encompass Health Corp's directors and officers reported 0 open-market purchases and 18 sales on Form 4. The insider trading page charts every trade.
When is Encompass Health Corp's next earnings date?
Around February 4, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Encompass Health Corp announces its own schedule.