Is Encompass Health Stock a Good Investment?
Encompass Health Investment Advice | EHC |
- Examine Encompass Health's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Encompass Health's leadership team and their track record. Good management can help Encompass Health navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Health Care Providers & Services space and any emerging trends that could impact Encompass Health's business and its evolving consumer preferences.
- Compare Encompass Health's performance and market position to its competitors. Analyze how Encompass Health is positioned in terms of product offerings, innovation, and market share.
- Check if Encompass Health pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Encompass Health's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Encompass Health Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Encompass Health Corp is a good investment.
Sell | Buy |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Encompass Health Stock
Researching Encompass Health's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Encompass Health was currently reported as 20.51. The company has Price/Earnings To Growth (PEG) ratio of 1.37. Encompass Health Corp last dividend was issued on the 1st of April 2025. The entity had 1257:1000 split on the 1st of July 2022.
To determine if Encompass Health is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Encompass Health's research are outlined below:
| Encompass Health Corp has about 21.8 M in cash with (3.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.6. | |
| Encompass Health has a poor financial position based on the latest SEC disclosures | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Xponance Inc. Raises Stock Position in Encompass Health Co. |
Encompass Health uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Encompass Health Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Encompass Health's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Encompass Health's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Encompass Health's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-03-01 | 2006-12-31 | -0.09 | -0.08 | 0.01 | 11 | ||
2011-10-27 | 2011-09-30 | 0.19 | 0.17 | -0.02 | 10 | ||
1995-10-18 | 1995-09-30 | 0.14 | 0.16 | 0.02 | 14 | ||
2007-08-08 | 2007-06-30 | -0.11 | -0.07 | 0.04 | 36 | ||
2005-06-29 | 2005-03-31 | 0.03 | 0.07 | 0.04 | 133 | ||
2011-02-17 | 2010-12-31 | 0.42 | 0.37 | -0.05 | 11 | ||
2010-05-04 | 2010-03-31 | 0.43 | 0.48 | 0.05 | 11 | ||
2005-08-15 | 2005-06-30 | 0.1 | 0.05 | -0.05 | 50 |
Encompass Health Target Price Consensus
Encompass target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Encompass Health's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 13 | Strong Buy |
Most Encompass analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Encompass stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Encompass Health Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationEncompass Health Target Price Projection
Encompass Health's current and average target prices are 100.90 and 116.50, respectively. The current price of Encompass Health is the price at which Encompass Health Corp is currently trading. On the other hand, Encompass Health's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Encompass Health Market Quote on 25th of March 2025
Target Price
Analyst Consensus On Encompass Health Target Price
Encompass Health Analyst Ratings
Encompass Health's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Encompass Health stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Encompass Health's financials, market performance, and future outlook by experienced professionals. Encompass Health's historical ratings below, therefore, can serve as a valuable tool for investors.Know Encompass Health's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Encompass Health is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Encompass Health Corp backward and forwards among themselves. Encompass Health's institutional investor refers to the entity that pools money to purchase Encompass Health's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | T. Rowe Price Investment Management,inc. | 2024-12-31 | 1.7 M | T. Rowe Price Associates, Inc. | 2024-12-31 | 1.6 M | Td Asset Management Inc | 2024-12-31 | 1.5 M | Brown Advisory Holdings Inc | 2024-12-31 | 1.4 M | Fuller & Thaler Asset Management Inc | 2024-12-31 | 1.4 M | Bank Of New York Mellon Corp | 2024-12-31 | 1.3 M | Td Global Investment Solutions – Td Epoch | 2024-12-31 | 1.3 M | Copeland Capital Management, Llc | 2024-12-31 | 1.3 M | Massachusetts Financial Services Company | 2024-12-31 | 1.1 M | Vanguard Group Inc | 2024-12-31 | 10.4 M | Blackrock Inc | 2024-12-31 | 9.8 M |
Encompass Health's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.07 B.Market Cap |
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Encompass Health's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.09 | 0.05 | |
| Return On Capital Employed | 0.11 | 0.11 | |
| Return On Assets | 0.07 | 0.07 | |
| Return On Equity | 0.22 | 0.23 |
Determining Encompass Health's profitability involves analyzing its financial statements and using various financial metrics to determine if Encompass Health is a good buy. For example, gross profit margin measures Encompass Health's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Encompass Health's profitability and make more informed investment decisions.
Please note, the presentation of Encompass Health's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Encompass Health's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Encompass Health's management manipulating its earnings.
Evaluate Encompass Health's management efficiency
Encompass Health Corp has Return on Asset of 0.0865 % which means that on every $100 spent on assets, it made $0.0865 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2329 %, implying that it generated $0.2329 on every 100 dollars invested. Encompass Health's management efficiency ratios could be used to measure how well Encompass Health manages its routine affairs as well as how well it operates its assets and liabilities. At present, Encompass Health's Return On Assets are projected to slightly decrease based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.23, whereas Return On Tangible Assets are forecasted to decline to 0.05. At present, Encompass Health's Deferred Long Term Asset Charges is projected to decrease significantly based on the last few years of reporting. The current year's Fixed Asset Turnover is expected to grow to 1.49, whereas Total Assets are forecasted to decline to about 3.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 28.52 | 29.95 | |
| Tangible Book Value Per Share | 12.69 | 13.32 | |
| Enterprise Value Over EBITDA | 8.00 | 8.40 | |
| Price Book Value Ratio | 4.46 | 4.69 | |
| Enterprise Value Multiple | 8.00 | 8.40 | |
| Price Fair Value | 4.46 | 4.69 | |
| Enterprise Value | 9.2 B | 9.7 B |
Examining the leadership quality of Encompass Health Corp offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.
Basic technical analysis of Encompass Stock
As of the 25th of March, Encompass Health shows the Downside Deviation of 1.44, mean deviation of 1.11, and Semi Deviation of 1.38. Encompass Health Corp technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Encompass Health's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Encompass Health insiders, such as employees or executives, is commonly permitted as long as it does not rely on Encompass Health's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Encompass Health insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Encompass Health's Outstanding Corporate Bonds
Encompass Health issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Encompass Health Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Encompass bonds can be classified according to their maturity, which is the date when Encompass Health Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ENELIM 68 15 SEP 37 Corp BondUS29268BAC54 | View | |
| ENELIM 6 07 OCT 39 Corp BondUS29268BAF85 | View | |
| ENCOMPASS HEALTH P Corp BondUS29261AAE01 | View | |
| Encompass Health 45 Corp BondUS29261AAA88 | View | |
| Encompass Health 475 Corp BondUS29261AAB61 | View | |
| US29267HAA77 Corp BondUS29267HAA77 | View | |
| ENERGY EAST P Corp BondUS29266MAF68 | View | |
| EDVLN 5 14 OCT 26 Corp BondUS29261HAA32 | View |
Understand Encompass Health's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Encompass Health's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0338 | |||
| Market Risk Adjusted Performance | 0.0583 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.44 | |||
| Coefficient Of Variation | 2977.49 | |||
| Standard Deviation | 1.39 | |||
| Variance | 1.93 | |||
| Information Ratio | 0.0527 | |||
| Jensen Alpha | 0.0644 | |||
| Total Risk Alpha | 0.0929 | |||
| Sortino Ratio | 0.0508 | |||
| Treynor Ratio | 0.0483 | |||
| Maximum Drawdown | 6.49 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 2.15 | |||
| Downside Variance | 2.07 | |||
| Semi Variance | 1.9 | |||
| Expected Short fall | (1.15) | |||
| Skewness | (0.25) | |||
| Kurtosis | (0.11) |
| Risk Adjusted Performance | 0.0338 | |||
| Market Risk Adjusted Performance | 0.0583 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.44 | |||
| Coefficient Of Variation | 2977.49 | |||
| Standard Deviation | 1.39 | |||
| Variance | 1.93 | |||
| Information Ratio | 0.0527 | |||
| Jensen Alpha | 0.0644 | |||
| Total Risk Alpha | 0.0929 | |||
| Sortino Ratio | 0.0508 | |||
| Treynor Ratio | 0.0483 | |||
| Maximum Drawdown | 6.49 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 2.15 | |||
| Downside Variance | 2.07 | |||
| Semi Variance | 1.9 | |||
| Expected Short fall | (1.15) | |||
| Skewness | (0.25) | |||
| Kurtosis | (0.11) |
Consider Encompass Health's intraday indicators
Encompass Health intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Encompass Health stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 9413.3 | |||
| Daily Balance Of Power | 0.6309 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 100.6 | |||
| Day Typical Price | 100.7 | |||
| Price Action Indicator | 0.78 | |||
| Period Momentum Indicator | 0.94 |
Encompass Health Corporate Filings
F4 | 5th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 28th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 10th of February 2025 Other Reports | ViewVerify | |
8K | 6th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Encompass Stock media impact
Far too much social signal, news, headlines, and media speculation about Encompass Health that are available to investors today. That information is available publicly through Encompass media outlets and privately through word of mouth or via Encompass internal channels. However, regardless of the origin, that massive amount of Encompass data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Encompass Health news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Encompass Health relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Encompass Health's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Encompass Health alpha.
Encompass Health Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Encompass Health can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Encompass Health Corp Historical Investor Sentiment
Investor biases related to Encompass Health's public news can be used to forecast risks associated with an investment in Encompass. The trend in average sentiment can be used to explain how an investor holding Encompass can time the market purely based on public headlines and social activities around Encompass Health Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Encompass Health's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Encompass Health and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Encompass Health news discussions. The higher the estimate score, the more favorable the investor's outlook on Encompass Health.
Encompass Health Corporate Directors
| Christopher Reidy | Independent Director | Profile | |
| John Chidsey | Independent Director | Profile | |
| Nancy Schlichting | Independent Director | Profile | |
| Yvonne Curl | Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encompass Health Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encompass Health. If investors know Encompass will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encompass Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.369 | Dividend Share 0.64 | Earnings Share 4.49 | Revenue Per Share | Quarterly Revenue Growth 0.127 |
The market value of Encompass Health Corp is measured differently than its book value, which is the value of Encompass that is recorded on the company's balance sheet. Investors also form their own opinion of Encompass Health's value that differs from its market value or its book value, called intrinsic value, which is Encompass Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encompass Health's market value can be influenced by many factors that don't directly affect Encompass Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Encompass Health's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Encompass Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encompass Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.