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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
$10.87B
P/E (TTM)
19.1
16.2
Dividend Yield
0.7%
52W High
$127.99
52W Low
$92.53
52W Range
44%
Rank34Top 27.8%
4.7
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4.7 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025

Financial Dashboard

Q4 2025 Data

Revenue

$1.54B+0.00%
4-Quarter Trend

EPS

$1.46+0.00%
4-Quarter Trend

FCF

$116.70M+0.00%
4-Quarter Trend

2025 Annual Earnings Highlights

Key Highlights

Strong Revenue and Income Growth Net operating revenues reached $5,935.2M in 2025, increasing 10.5%. Net income attributable to EH grew 24.2% to $566.2M.
Expanded Hospital Footprint Operated 173 inpatient rehabilitation hospitals by year-end 2025, adding 7 new facilities during the year. Discharges grew 6.0% to 263,299.
Favorable Capital Structure Management Redeemed remaining $100.0M of 2025 Senior Notes in September 2025. Maintained $824.0M available under revolving credit facility.
Workforce Investment and Retention Employed over 42,000 individuals; reimbursed over $4.6M for tuition/scholarships in 2025. Nurse turnover slightly decreased to 20.2%.

Risk Factors

Medicare Reimbursement Uncertainty Substantial revenue concentration (82% from Medicare/MA). Regulatory changes like sequestration could reduce payments, impacting profitability.
Staffing Shortages Increase Costs Competition for clinical personnel drives up labor costs, potentially exceeding fixed reimbursement rate increases, adversely affecting margins.
Regulatory Compliance Burden Compliance with complex federal/state laws, including False Claims Act and fraud/abuse rules, requires substantial time, expense, and risk.
Cybersecurity Incident Exposure Dependent on IT systems; vendor compromises, like Change Healthcare, disrupt operations and require significant remediation capital expenditures.

Outlook

Continued Capacity Expansion Plans Pursuing growth via de novo projects and bed additions, planning 49 to 60 new beds across several locations in 2026.
Focus on Operational Initiatives Initiatives target lowering acute-care transfers, improving discharge rates, and leveraging AI to enhance post-acute care efficiency.
Maintain Flexible Capital Structure Seek balance sheet flexibility; continue shareholder distributions via dividends and stock repurchases, funded by strong operating cash flow.
Enhance Clinical Quality Metrics Continue efforts to build stroke market share; 148 hospitals held stroke-specific certifications as of December 31, 2025.

Peer Comparison

Revenue (TTM)

FMS stock ticker logoFMS
$22.15B
+1.5%
UHS stock ticker logoUHS
$17.36B
+9.7%
DVA stock ticker logoDVA
$13.64B
+6.5%

Gross Margin (Latest Quarter)

DOCS stock ticker logoDOCS
89.9%
+0.2pp
ALGN stock ticker logoALGN
65.7%
-5.5pp
RDY stock ticker logoRDY
53.6%
-5.0pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
ALGN$13.56B33.010.4%1.3%
FMS$13.53B11.77.1%34.8%
UHS$13.14B8.821.0%35.5%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
2.0%
Moderate Growth
4Q Net Income CAGR
-1.2%
Stable Profitability
Cash Flow Stability
100%
Strong Cash Flow

Deep Research

Next earnings:Apr 22, 2026
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