Encompass Health Corp Stock Research

Market Summary

USD52.97+0.91

Market Closed

1.75%

EHC Alerts

1 major insider sales recently.

EHC Stock Price

EHC RSI Chart

EHC Valuation

Market Cap

5.3B

Price/Earnings (Trailing)

19.39

Price/Sales (Trailing)

1.21

EV/EBITDA

9.17

Price/Free Cashflow

37.27

EHC Price/Sales (Trailing)

EHC Profitability

EBT Margin

10.37%

Return on Equity

20.68%

Return on Assets

4.81%

Free Cashflow Yield

2.68%

EHC Fundamentals

EHC Revenue

Revenue (TTM)

4.3B

Revenue Y/Y

9.09%

Revenue Q/Q

4.39%

EHC Earnings

Earnings (TTM)

271.0M

Earnings Y/Y

-2.4%

Earnings Q/Q

96.92%

Price Action

52 Week Range

41.9864.90

(Low)(High)

Last 7 days

-4.4%

Last 30 days

-15.5%

Last 90 days

-9.6%

Trailing 12 Months

-2.9%

EHC Financial Health

Current Ratio

1.25

Debt/Equity

2.09

Debt/Cashflow

0.26

EHC Investor Care

Dividend Yield

1.62%

Dividend/Share (TTM)

0.86

Shares Dilution (1Y)

0.20%

Diluted EPS (TTM)

2.7

Peers (Alternatives to Encompass Health)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
HCA	70.6B	60.2B	-4.86%	-6.89%	12.5	1.17	2.52%	-18.88%
LH	19.6B	14.9B	-11.65%	-18.57%	15.35	1.32	-7.72%	-46.20%
DGX	15.5B	9.9B	-9.17%	-4.78%	16.43	1.57	-8.39%	-52.58%
MID-CAP
UHS	8.8B	13.4B	-20.72%	-21.03%	13	0.66	5.99%	-31.87%
DVA	7.1B	11.6B	-9.20%	-31.27%	12.59	0.61	-0.08%	-42.73%
THC	6.1B	19.2B	-9.72%	-38.02%	6.13	0.32	-1.60%	-32.18%
EHC	5.3B	4.3B	-15.50%	-2.92%	19.39	1.21	8.31%	-34.26%
SGRY	4.1B	2.5B	-9.79%	-38.94%	-74.24	1.6	14.12%	22.99%
SEM	3.3B	6.3B	-15.00%	4.69%	20.58	0.52	2.08%	-60.47%
SMALL-CAP
ADUS	1.6B	951.1M	-7.28%	30.41%	34.53	1.67	10.02%	1.99%
RDNT	1.3B	1.4B	12.22%	10.36%	120.12	0.89	8.74%	-56.93%
CYH	724.7M	12.2B	-1.54%	-55.54%	15.75	0.06	-1.27%	-80.00%
BKD	524.3M	2.8B	-3.12%	-59.80%	-2.2	0.19	2.43%	-140.13%
SSY	7.5M	45.8M	-2.78%	-21.05%	-2.54	0.16	11.66%	-153.83%

Financials for Encompass Health

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	2.2%	4,349	4,254	4,175	4,114	4,015
S&GA Expenses	-19.8%	154	192	193	187	170
EBITDA	-2.3%	870	891	1,101	1,053	-
EBITDA Margin	-4.4%	0.20*	0.21*	0.19*	0.20*	-
Earnings Before Taxes	-1.7%	451	458	479	566	505
EBT Margin	-3.8%	0.10*	0.11*	0.11*	0.12*	-
Interest Expenses	-1.5%	176	178	180	161	164
Net Income	-0.8%	271	273	328	392	412
Net Income Margin	-3.0%	0.06*	0.06*	0.06*	0.08*	-
Free Cahsflow	56.3%	141	90.00	219	231	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	2.9%	5,637	5,476	7,082	6,944	6,865
Current Assets	-2.3%	717	734	1,032	950	921
Cash Equivalents	-63.5%	22.00	60.00	187	94.00	49.00
Goodwill	1.3%	1,263	1,247	2,457	2,457	1,237
Liabilities	1.2%	3,775	3,728	4,538	4,452	4,466
Current Liabilities	-4.8%	576	605	835	755	749
Long Term Debt	0.8%	2,742	2,719	3,234	3,221	3,241
Shareholder's Equity	7.7%	1,310	1,217	2,501	2,448	1,911
Retained Earnings	-18.4%	116	142	-	-	-
Additional Paid-In Capital	-24.4%	1,730	2,290	-	-	-
Shares Outstanding	0%	99.00	99.00	125	-	-
Minority Interest	4.7%	516	493	498	475	446

* denotes actual numbers (not divided by Millions)
Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	7.4%	706	657	765	776	716
Share Based Compensation	-4.6%	29.00	31.00	31.00	34.00	29.00
Cashflow From Investing	2.2%	-627	-641	-591	-693	-666
Cashflow From Financing	-67.7%	-145	-86.90	-56.40	-223	-240
Dividend Payments	-11.4%	99.00	112	112	112	112
Buy Backs	NaN%	0.00	0.00	-	-	-

Risks for EHC

What is the probability of a big loss on EHC?

67.7%

Probability that Encompass Health stock will be more than 20% underwater in next one year

31.9%

Probability that Encompass Health stock will be more than 30% underwater in next one year.

Probability that Encompass Health stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does EHC drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Encompass Health was unfortunately bought at previous high price.

Drawdowns

Returns for EHC

Cumulative Returns on EHC

12.0%

10-Year Cumulative Returns

11.1%

7-Year Cumulative Returns

4.1%

5-Year Cumulative Returns

2.2%

3-Year Cumulative Returns

What are the long-term rolling returns for EHC?

FIve years rolling returns for Encompass Health.

Annualized Returns

Which funds bought or sold EHC recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	added	3.03	37,494,400	140,961,000	0.15%
2023-03-06	Rockefeller Capital Management L.P.	added	3.94	4,000	15,000	-%
2023-02-28	Voya Investment Management LLC	added	4.51	224,997	812,997	-%
2023-02-24	SRS Capital Advisors, Inc.	reduced	-13.76	634	5,634	-%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	added	161	1,708,000	2,403,000	0.03%
2023-02-21	NORTHWESTERN MUTUAL INVESTMENT MANAGEMENT COMPANY, LLC	reduced	-35.92	-99,714	552,286	0.01%
2023-02-21	NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO	unchanged	-	316	1,316	-%
2023-02-21	MACQUARIE GROUP LTD	reduced	-15.6	4,916,000	48,007,000	0.06%
2023-02-21	Ruedi Wealth Management, Inc.	new	-	12,082	12,082	0.01%
2023-02-17	TRUIST FINANCIAL CORP	reduced	-1.14	3,796,510	16,153,500	0.03%

Latest Funds Activity

Are funds buying EHC calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own EHC

No. of Funds

EHC Alerts

1 major insider sales recently.

Encompass Health News

Schedule 13G FIlings of Encompass Health

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	9.77%	9,749,441	SC 13G/A
Feb 06, 2023	wellington management group llp	9.58%	9,558,849	SC 13G/A
Jan 30, 2023	blackrock inc.	11.3%	11,232,620	SC 13G/A
Jan 30, 2023	blackrock inc.	11.3%	11,232,620	SC 13G/A
Feb 10, 2022	vanguard group inc	9.46%	9,414,569	SC 13G/A
Feb 04, 2022	wellington management group llp	10.58%	10,524,661	SC 13G/A
Jan 27, 2022	blackrock inc.	10.7%	10,643,463	SC 13G/A
Jan 25, 2022	blackrock inc.	10.7%	10,643,463	SC 13G/A
Feb 11, 2021	william blair investment management, llc	4.70%	4,666,500	SC 13G/A
Feb 10, 2021	vanguard group inc	9.05%	8,998,232	SC 13G/A

EHC Fair Value

Encompass Health fair value in different scenarios

The table shows the Fair Value estimates for Encompass Health for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	- -	- -	- -	- -	- -
Current Inflation	23.57 -55.50%	35.05 -33.83%	50.03 -5.55%	61.65 16.39%	72.40 36.68%
Very High Inflation	- -	- -	- -	- -	- -

Historical Encompass Health Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Encompass Health

View All Filings

Date Filed	Form Type	Document
Mar 14, 2023	8-K	Current Report
Mar 02, 2023	4	Insider Trading
Mar 02, 2023	4	Insider Trading
Mar 02, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading
Feb 28, 2023	4	Insider Trading

Latest Insider Trading transactions for EHC

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-02-27	Darby John Patrick	sold (taxes)	-30,652	60.22	-509	evp, gen counsel & secretary
2023-02-27	Tarr Mark J	sold (taxes)	-174,337	60.22	-2,895	president & ceo
2023-02-27	Price Andrew L	sold (taxes)	-24,690	60.22	-410	chief accounting officer
2023-02-27	Charbonneau Elissa Joy	sold (taxes)	-30,471	60.22	-506	chief medical officer
2023-02-27	COLTHARP DOUGLAS E	sold (taxes)	-64,917	60.22	-1,078	evp & chief financial officer
2023-02-27	Fay Edmund	sold (taxes)	-23,064	60.22	-383	sr. vice pres. and treasurer
2023-02-24	COLTHARP DOUGLAS E	sold (taxes)	-50,584	60.22	-840	evp & chief financial officer
2023-02-24	Price Andrew L	sold (taxes)	-19,270	60.22	-320	chief accounting officer
2023-02-24	Fay Edmund	sold (taxes)	-18,005	60.22	-299	sr. vice pres. and treasurer
2023-02-24	Darby John Patrick	sold (taxes)	-23,907	60.22	-397	evp, gen counsel & secretary

About Encompass Health

Mark J. Tarr

www.healthsouth.com

43400

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in 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. As of April 11, 2022, it operated 147 hospitals, 251 home health locations, and 96 hospice locations in 42 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.

EHC Income Statement

2022-12-31

Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income and Income Statement [Abstract]
Net operating revenues	$ 4,348.6	$ 4,014.9	$ 3,566.3
Operating expenses:
Salaries and benefits	2,393.3	2,127.3	1,903.8
Other operating expenses	670.4	595.9	545.1
Occupancy costs	54.7	59.0	61.4
Supplies	202.1	184.2	171.0
General and administrative expenses	154.3	169.5	151.6
Depreciation and amortization	243.6	219.6	203.0
Government, class action, and related settlements	0.0	0.0	2.8
Total operating expenses	3,718.4	3,355.5	3,038.7
Loss on early extinguishment of debt	1.4	1.0	2.3
Interest expense and amortization of debt discounts and fees	175.7	164.3	183.7
Other expense (income)	5.2	(7.5)	(8.4)
Equity in net income of nonconsolidated affiliates	(2.9)	(3.4)	(2.9)
Income from continuing operations before income tax expense	450.8	505.0	352.9
Provision for income tax expense	100.1	101.9	74.7
Income from continuing operations	350.7	403.1	278.2
Income from discontinued operations, net of tax	15.2	114.1	90.6
Net and comprehensive income	365.9	517.2	368.8
Net and comprehensive income	365.9	517.2	368.8
Less: Net income attributable to noncontrolling interests included in continuing operations	(93.6)	(103.2)	(83.3)
Less: Net income attributable to noncontrolling interests included in discontinued operations	(1.3)	(1.8)	(1.3)
Less: Net and comprehensive income attributable to noncontrolling interests	(94.9)	(105.0)	(84.6)
Less: Net and comprehensive income attributable to noncontrolling interests	(94.9)	(105.0)	(84.6)
Net and comprehensive income attributable to Encompass Health	271.0	412.2	284.2
Net and comprehensive income attributable to Encompass Health	$ 271.0	$ 412.2	$ 284.2
Weighted average common shares outstanding:
Basic (in shares)	99.2	99.0	98.6
Diluted (in shares)	100.4	100.2	99.8
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 2.58	$ 3.02	$ 1.97
Discontinued operations (in dollars per share)	0.14	1.13	0.90
Net income (in dollars per share)	2.72	4.15	2.87
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	2.56	2.99	1.96
Discontinued operations (in dollars per share)	0.14	1.12	0.89
Net income (in dollars per share)	$ 2.70	$ 4.11	$ 2.85
Amounts attributable to Encompass Health:
Income from continuing operations	$ 257.1	$ 299.9	$ 194.9
Income from discontinued operations, net of tax	13.9	112.3	89.3
Net and comprehensive income attributable to Encompass Health	$ 271.0	$ 412.2	$ 284.2

EHC Balance Sheet

2022-12-31

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2022

Dec. 31, 2021

Current assets:

Cash and cash equivalents

$ 21.8

$ 49.4

Restricted cash

31.6

62.5

Accounts receivable

536.8

515.8

Prepaid expenses and other current assets

127.0

114.9

Current assets of discontinued operations

0.0

178.8

Total current assets

717.2

921.4

Property and equipment, net

2,939.2

2,581.2

Operating lease right-of-use assets

212.5

193.7

Goodwill

1,263.2

1,237.0

Intangible assets, net

282.3

158.4

Other long-term assets

222.0

230.0

Noncurrent assets of discontinued operations

0.1

1,543.2

Total assets

^[1]

5,636.5

6,864.9

Current liabilities:

Current portion of long-term debt

25.2

37.8

Current operating lease liabilities

25.6

23.5

Accounts payable

132.9

134.0

Accrued payroll

168.3

199.4

Accrued interest payable

42.8

44.4

Other current liabilities

181.0

177.3

Current liabilities of discontinued operations

0.1

132.4

Total current liabilities

575.9

748.8

Long-term debt, net of current portion

2,741.8

3,240.5

Long-term operating lease liabilities

199.7

179.6

Self-insured risks

128.5

123.8

Deferred income tax liabilities

83.0

23.3

Other long-term liabilities

45.3

48.9

Noncurrent liabilities of discontinued operations

0.4

100.8

Total liabilities

3,774.6

4,465.7

Commitments and contingencies

Redeemable noncontrolling interests

35.6

42.2

Encompass Health shareholders’ equity:

Common stock, $.01 par value; 200,000,000 shares authorized; issued: 114,775,056 in 2022; 114,211,057 in 2021

1.1

Capital in excess of par value

1,730.2

2,289.6

Accumulated income

115.7

141.8

Treasury stock, at cost (14,992,125 shares in 2022 and 14,719,662 shares in 2021)

(536.7)

(521.2)

Total Encompass Health shareholders’ equity

1,310.3

1,911.3

Noncontrolling interests

516.0

445.7

Total shareholders’ equity

1,826.3

2,357.0

Liabilities and Equity, Total

^[1]

$ 5,636.5

$ 6,864.9

[1]

Our consolidated assets as of December 31, 2022 and December 31, 2021 include total assets of variable interest entities of $207.8 million and $226.2 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of December 31, 2022 and December 31, 2021 include total liabilities of the variable interest entities of $47.9 million and $38.2 million, respectively. See Note 4, Variable Interest Entities.