EHC:NYE-Encompass Health Corporation (USD)

COMMON STOCK | Medical Care | NYE

Last Closing Price

USD 70.30

Change

+0.83 (+1.19)%

Market Cap

USD 6.94B

Volume

0.97M

Average Target Price

USD 71.50 (+1.71%)
Average Analyst Rating

Verdict

STA Verdict

Verdict

About

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates through two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The Home Health and Hospice segment provides home health and hospice services primarily in the Southeast and Texas. Its home health services include a range of Medicare-certified home nursing services to adult patients in need of care comprising skilled nursing, medical social work, and home health aide services, as well as physical, occupational, speech therapy, and others. This segment's hospice services comprise in-home services to terminally ill patients and their families to address patients' physical needs, including pain control and symptom management, and to provide emotional and spiritual support. As of September 9, 2019, Encompass Health Corporation operated 133 hospitals, 245 home health locations, and 82 hospice locations in 37 states and Puerto Rico. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was founded in 1983 and is based in Birmingham, Alabama.

Market Stats

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-11-18 )

Largest Industry Peers for Medical Care

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
HNGR Hanger, Inc

+0.25 (+1.04%)

USD0.90B 69.08 15.11
AMS American Shared Hospital Servi..

+0.07 (+2.98%)

USD0.01B 25.05 3.67
SSY SunLink Health Systems, Inc

N/A

USD8.03M N/A -6.51

ETFs Containing EHC

Symbol Name Weight Mer Price(Change) Market Cap
XHS SPDR S&P Health Care Serv.. 2.66 % 0.35 %

+0.26 (+0.37%)

USD0.08B
OUSM O'Shares FTSE Russel.. 2.30 % 0.48 %

-0.15 (-0.50%)

USD0.10B

Market Performance

  Market Performance vs.
Industry/Classification (Medical Care)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 13.94% 50% F 51% F
Dividend Return 1.33% 100% A+ 28% F
Total Return 15.27% 50% F 48% F
Trailing 12 Months  
Capital Gain -4.51% 50% F 28% F
Dividend Return 1.48% 100% A+ 27% F
Total Return -3.03% 50% F 26% F
Trailing 5 Years  
Capital Gain N/A N/A N/A N/A N/A
Dividend Return N/A N/A N/A N/A N/A
Total Return N/A N/A N/A N/A N/A
Average Annual (5 Year Horizon)  
Capital Gain -0.78% 47% F 33% F
Dividend Return 0.77% 63% D 18% F
Total Return -0.02% 47% F 25% F
Risk Return Profile  
Volatility (Standard Deviation) 11.06% 93% A 67% D+
Risk Adjusted Return -0.14% 47% F 25% F
Market Capitalization 6.94B 100% A+ 93% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Medical Care)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 21.98 100% A+ 34% F
Price/Book Ratio 5.21 25% F 17% F
Price / Cash Flow Ratio 9.11 50% F 47% F
EV/EBITDA 11.91 50% F 41% F
Management Effectiveness  
Return on Equity 21.74% 100% A+ 88% B+
Return on Invested Capital 15.51% 100% A+ 85% B
Return on Assets 7.52% 100% A+ 88% B+
Debt to Equity Ratio 174.79% 25% F 18% F
Technical Ratios  
Short Ratio 2.95 50% F 46% F
Short Percent 1.94% 50% F 78% C+
Beta 0.83 100% A+ 58% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.