# Encompass Health Corporation (EHC)

> Source: Nexqual · https://nexqual.com/EHC · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Encompass Health Corporation (EHC), nexqual.com/EHC" · informational, not investment advice.

**Price:** USD 126.01 (+4.60% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 120.47 · day 119.91–126.37 · 52w 92.77–129.96 · market cap $12.4B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $6.21B, net income $621M (10.0% margin), free cash flow $413M (SEC filings).
- Valuation: P/E 20.0x (avg 19.7x at the last 3 fiscal year-ends), net debt $2.49B.
- 1 of 80 tracked superinvestors hold EHC (13F, Q2 2026): 0 new, 0 added, 1 reduced, 0 unchanged.
- Analysts: Buy (mean 1.92 on a 1–5 scale) (13 analysts), mean target USD 148.17 (range 140–155).
- Total return with dividends: 1Y +0.4% vs S&P 500 +14.9%; 5Y +135.3% vs S&P 500 +80.3%.
- Next earnings: 2026-10-28, EPS estimate USD 1.36, revenue estimate $1.60B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $4.01B | $4.35B | $4.80B | $5.37B | $5.94B | $6.21B |
| Operating income | $560M | $540M | — | — | — | — |
| Net income | $412M | $271M | $352M | $456M | $566M | $621M |
| EPS (diluted) | $4.11 | $2.70 | $3.47 | $4.46 | $5.54 | — |
| Free cash flow | $191M | $141M | $268M | $360M | $439M | $413M |
| Operating margin | 13.9% | 12.4% | — | — | — | — |
| Net margin | 10.3% | 6.2% | 7.3% | 8.5% | 9.5% | 10.0% |
| Revenue growth | +12.6% | +8.3% | +10.4% | +11.9% | +10.5% | — |
| Cash + short-term investments | $49.4M | $21.8M | $69.1M | $85.4M | $72.2M | — |
| Total debt | $3.24B | $2.74B | $2.69B | $2.36B | $2.45B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 20.0x · P/S 2.0x · EV/Sales 2.4x · P/FCF 30.1x · P/B 4.8x · FCF yield 3.33% · Earnings yield 5.00% · Dividend yield (paid, TTM) 0.60% · Buyback yield (TTM) 1.99% · Net debt $2.49B · EV $14.9B
P/E at fiscal year-ends: Dec 2025 19.2x, Dec 2024 20.7x, Dec 2023 19.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold EHC. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Jensen Investment Management |  | 0.10% | $4.0M | Reduced -22.5% |

## Analysts
Consensus Buy (mean 1.92 on a 1–5 scale), 13 analysts; mean target USD 148.17 (low 140, high 155).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-10 | TD Cowen | Target raised | Buy | $125 → $140 |
| 2026-08-07 | UBS | Target raised | Buy | $150 → $155 |
| 2026-08-07 | Truist Securities | Target raised | Buy | $140 → $150 |
| 2026-08-06 | Barclays | Target raised | Overweight | $140 → $144 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +0.4% | +135.3% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +0.4% | +18.6% |
| Volatility (annualized) | 29.4% | 26.1% |
| Max drawdown | -26.1% (Oct 2025→Feb 2026) | -25.1% (Sep 2025→Jan 2026) |

## Peers (Medical Care Facilities)
DVA (DaVita Inc.) USD 186.1 +5.25% · FMS (Fresenius Medical Care AG) USD 22.23 +3.11% · UHS (Universal Health Services, Inc.) USD 188.13 +2.88% · ENSG (The Ensign Group, Inc.) USD 178.35 +2.88% · PACS (PACS Group, Inc.) USD 47.5 +1.58% · THC (Tenet Healthcare Corporation) USD 270.63 +0.56%

## More
Full page: https://nexqual.com/EHC · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in EHC's own 10-K filed 2026-02-26 (https://www.sec.gov/Archives/edgar/data/785161/000078516126000081/ehc-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Oracle (ORCL) | "ACE-IT, our enterprise-level clinical information system, is subject to a licensing, implementation, technology hosting, and support agreement with Oracle Health." |
| Partner | Lee Healthcare Holdings | "•began operating our new 60-bed inpatient rehabilitation hospital in Fort Myers, Florida with our joint venture partner Lee Healthcare Holdings, LLC in May;" |
| Partner | Barnes-Jewish Hospital | "On December 31, 2025, we entered into an agreement to sell our 50% membership interest in Gamma Knife Center at Barnes-Jewish Hospital, LLC ("Gamma Knife") to our existing joint venture partner, Barnes-Jewish Hospital, L…" |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Inpatient | $1.55B | 97.1% | +9.8% |
| — Medicare (part of Inpatient) | $1.05B | 65.6% | +11.5% |
| — Medicare Advantage (part of Inpatient) | $259.4M | 16.2% | +5.4% |
| — Managed care (part of Inpatient) | $171.3M | 10.7% | +5.1% |
| — Medicaid (part of Inpatient) | $49.6M | 3.1% | +9.7% |
| — Other third-party payors (part of Inpatient) | $11.9M | 0.7% | +14.4% |
| — Workers’ compensation (part of Inpatient) | $7.1M | 0.4% | -5.3% |
| — Patients (part of Inpatient) | $6.7M | 0.4% | +45.7% |
| Other | $45.8M | 2.9% | +4.1% |
| Other income | $43.8M | 2.7% | +6.1% |
| Total revenue | $1.60B | 100% | — |
The lines above cover 102.7% of total revenue.

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.36 | $1.36 | -0.1% | $1.60B | 12 |
| Next quarter (ends 2026-12-31) | $1.61 | $1.57 | +2.5% | $1.67B | 12 |
| Current fiscal year (ends 2026-12-31) | $6.11 | $6.01 | +1.8% | $6.46B | 13 |
| Next fiscal year (ends 2027-12-31) | $6.68 | $6.54 | +2.2% | $6.99B | 13 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-10-28): ±9.4%; last 8 reports averaged ±7.8%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 42.0% | ±9.4% |
| 2026-12-18 | 56 | 35.0% | ±11.0% |
| 2027-01-15 | 84 | 32.1% | ±12.2% |
| 2027-04-16 | 175 | 31.4% | ±17.2% |