Encompass Health Corporation

Valuation Analysis

About the Company

Encompass Health Corporation en bref

Encompass Health Corporation (EHC) is currently trading at 85,43 € with a market capitalization of 8,5 Md €. The trailing P/E ratio stands at 16.78x, with a forward P/E of 14.99x. The 52-week range spans from 80,87 € to 111,58 €; the current price is 23.4% below the yearly high. Year-over-year revenue growth stands at +9.0%. The net profit margin stands at 10.04%.

💰 Dividende

Encompass Health Corporation pays an annual dividend of 0,66 € per share, representing a yield of 0.78%. The payout ratio stands at 12.67%.

📊 Avis des analystes

12 analystes évaluent Encompass Health Corporation (EHC) au consensus : Achat Fort. L'objectif de cours moyen est de 122,48 €, soit un potentiel de +43.37% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 108,97 € à 132,51 €.

Encompass Health Corporation : la thèse d'investissement en détail

Encompass Health Corporation (EHC) operates in the Healthcare — specifically Medical Care Facilities — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

Earnings growth of 30.3% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 43.49% gross margin and 19.01% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 25.23% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

Valorisation en contexte

With a PEG ratio of 0.41, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 9.43x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

À surveiller

• The forward P/E of 14.99x is meaningfully below the trailing 16.78x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 43.37% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Profil de risque

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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