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Encompass Health Corporation

Encompass Health Corporation

NYSE•EHC
CEO: Mr. Mark J. Tarr
Sector: Healthcare
Industry: Medical - Care Facilities
Listing Date: 1986-09-24
Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. The company was incorporated in 1984 and is based in Birmingham, Alabama.
Contact Information
9001 Liberty Parkway, Birmingham, AL, 35242, United States
205-967-7116
www.encompasshealth.com
Market Cap
$11.37B
P/E (TTM)
21.0
17.1
Dividend Yield
0.6%
52W High
$127.99
52W Low
$87.85
52W Range
63%
Rank39Top 29.7%
4.6
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4.6 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q3 2025 Data

Revenue

$1.48B+9.36%
4-Quarter Trend

EPS

$1.26+16.67%
4-Quarter Trend

FCF

$83.70M-30.42%
4-Quarter Trend

2025 Q3 Earnings Highlights

Key Highlights

Revenue Growth Strong Net operating revenues reached $4.39B USD, showing 10.6% growth for nine months ended September 30, 2025.
Profitability Significantly Improved Net income attributable grew 25.5% to $420.1M USD for nine months, driven by revenue increases and volume.
Volume and Pricing Gains Discharges increased 6.2% while net revenue per discharge rose 3.8% year-to-date for the nine month period.
Operating Cash Flow Rises Operating cash flow reached $829.6M USD for nine months, representing a $105.6M increase versus prior year.

Risk Factors

Medicare Reimbursement Uncertainty CMS 2026 Final IRF Rule projects a net 2.9% Medicare payment rate increase effective October 1, 2025.
Regulatory Compliance Burden Extensive complex laws require substantial time and expense compliance across federal and state levels impacting operations.
Staffing Cost Pressures Persist Labor costs remain high despite contract labor FTEs decreasing 15.5% year-to-date for the nine month period.
Litigation Exposure Remains Subject to various lawsuits, including potential undisclosed False Claims Act actions, impacting operations and liquidity.

Outlook

Demand Driven by Demographics Population aging supports long-term demand; Medicare enrollees 65+ expected to grow 3% annually through 2030.
Aggressive Capacity Expansion Opened four new hospitals in 2025 YTD, adding 140 beds across existing markets and new geographic areas.
2025 Capital Spending Plan Expect capital expenditures between $785M USD and $820M USD for ongoing development projects throughout 2025.
Tax Savings Anticipated OBBBA tax reform provisions estimated to produce approximately $50M USD in cash tax savings during the 2025 fiscal year.

Peer Comparison

Revenue (TTM)

Fresenius Medical Care AGFMS
$21.68B
+2.1%
Universal Health Services, Inc.UHS
$16.99B
+10.2%
DaVita Inc.DVA
$13.32B
+5.1%

Gross Margin (Latest Quarter)

Universal Health Services, Inc.UHS
90.8%
+0.6pp
Doximity, Inc.DOCS
90.3%
+0.2pp
Dr. Reddy's Laboratories LimitedRDY
54.7%
-4.9pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
UHS$14.87B10.819.9%33.3%
ICLR$14.19B24.06.3%21.6%
FMS$13.70B17.94.7%35.2%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
1.7%
Moderate Growth
4Q Net Income CAGR
1.5%
Profitability Slowly Improving
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Reports
All Years

  • Form 10-Q - Q3 2025

    Period End: Sep 30, 2025|Filed: Oct 31, 2025|
    Revenue: $1.48B+9.4%
    |
    EPS: $1.26+16.7%
    Beat

  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Aug 6, 2025|
    Revenue: $1.46B+12.0%
    |
    EPS: $1.41+24.8%
    Beat

  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: May 1, 2025|
    Revenue: $1.46B+10.6%
    |
    EPS: $1.50+33.9%
    Beat

  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 28, 2025|
    Revenue: $5.37B+11.9%
    |
    EPS: $4.53+28.0%
    Beat

  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Nov 1, 2024|
    Revenue: $1.35B+11.9%
    |
    EPS: $1.08+25.6%
    Beat

  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Aug 6, 2024|
    Revenue: $1.30B+9.6%
    |
    EPS: $1.13+24.2%
    Beat

  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: May 2, 2024|
    Revenue: $1.32B+13.4%
    |
    EPS: $1.12+27.3%
    Beat

  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 28, 2024|
    Revenue: $4.80B+10.4%
    |
    EPS: $3.54+30.1%
    Beat