Encompass Health Shares Owned By Insiders vs. Price To Earning

EHC Stock  USD 102.40  0.06  0.06%   
Considering the key profitability indicators obtained from Encompass Health's historical financial statements, Encompass Health's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Encompass Health's ability to earn profits and add value for shareholders. At present, Encompass Health's Days Sales Outstanding is projected to increase significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 3.37, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.04. At present, Encompass Health's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Income Tax Expense is expected to grow to about 138.8 M, whereas Operating Income is forecasted to decline to about 534.2 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.1944
Significantly Down
Very volatile
Net Profit Margin0.06470.0733
Fairly Down
Slightly volatile
Operating Profit Margin0.140.1524
Significantly Down
Slightly volatile
Pretax Profit Margin0.130.1265
Fairly Up
Very volatile
Return On Assets0.03240.0577
Way Down
Slightly volatile
For Encompass Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Encompass Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Encompass Health Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Encompass Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Encompass Health Corp over time as well as its relative position and ranking within its peers.
  

Encompass Health's Revenue Breakdown by Earning Segment

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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
0.26
Dividend Share
0.62
Earnings Share
4.25
Revenue Per Share
52.255
Quarterly Revenue Growth
0.119
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.
Please note, there is a significant difference between Encompass Health's value and its price as these two are different measures arrived at by different 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.

Encompass Health Corp Price To Earning vs. Shares Owned By Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Encompass Health's current stock value. Our valuation model uses many indicators to compare Encompass Health value to that of its competitors to determine the firm's financial worth.
Encompass Health Corp is rated below average in shares owned by insiders category among its peers. It is rated below average in price to earning category among its peers reporting about  13.77  of Price To Earning per Shares Owned By Insiders. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Encompass Health's earnings, one of the primary drivers of an investment's value.

Encompass Price To Earning vs. Shares Owned By Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Encompass Health

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
1.36 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Encompass Health

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
18.73 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Encompass Price To Earning Comparison

Encompass Health is currently under evaluation in price to earning category among its peers.

Encompass Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Encompass Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Encompass Health will eventually generate negative long term returns. The profitability progress is the general direction of Encompass Health's change in net profit over the period of time. It can combine multiple indicators of Encompass Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income731.8 M534.2 M
Income Before Tax607.2 M637.6 M
Total Other Income Expense Net-124.6 M-130.8 M
Net Income361.6 M379.7 M
Income Tax Expense132.2 M138.8 M
Net Income Applicable To Common Shares310.3 M299.1 M
Net Income From Continuing Ops466.4 M312.5 M
Non Operating Income Net Other17.6 M18.5 M
Interest Income198.7 M171.2 M
Net Interest Income-146.1 M-153.4 M
Change To Netincome243.7 M171.7 M
Net Income Per Share 3.54  3.71 
Income Quality 2.35  2.24 
Net Income Per E B T 0.58  0.74 

Encompass Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Encompass Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Encompass Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Encompass Health's important profitability drivers and their relationship over time.

Use Encompass Health in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Encompass Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Encompass Health will appreciate offsetting losses from the drop in the long position's value.

Encompass Health Pair Trading

Encompass Health Corp Pair Trading Analysis

The ability to find closely correlated positions to Encompass Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Encompass Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Encompass Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Encompass Health Corp to buy it.
The correlation of Encompass Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Encompass Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Encompass Health Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Encompass Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Encompass Health position

In addition to having Encompass Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Banks Thematic Idea Now

Banks
Banks Theme
Large and small money and credit banks and credit services. The Banks theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks Theme or any other thematic opportunities.
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When determining whether Encompass Health Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Encompass Health's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Encompass Health Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Encompass Health Corp Stock:
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You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project Encompass Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Encompass Health Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Encompass Health's income statement, its balance sheet, and the statement of cash flows.
Potential Encompass Health investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Encompass Health investors may work on each financial statement separately, they are all related. The changes in Encompass Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Encompass Health's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.