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Largest US operator of inpatient rehabilitation hospitals, providing intensive physical rehabilitation for stroke, brain injury and orthopedic patients.
Largest US operator of inpatient rehabilitation hospitals, providing intensive physical rehabilitation for stroke, brain injury and orthopedic patients.
Is paid per patient discharged under a set Medicare rate for each type of case, so profit depends on running each stay efficiently and keeping beds full. In 2022 it spun off its home-health and hospice business as Enhabit and now runs only rehabilitation hospitals.
Moat: narrow (scale, regulatory licence, installed base). Largest scale in a licensed, capital-intensive inpatient rehab hospital niche with high barriers to new supply.
Headquarters: Birmingham, Alabama, USA · Founded: 1984 · Employees: 42,300
Size Encompass Health (EHC) is a United States Health Care company (Medical/Nursing Services) with a market value of $13.5B, the 649th largest of 3,117 United States companies the cockpit tracks. Shares closed at $137.54 on 6 Nov 2026.
Performance Over six months the shares gained 29.6%, against +24.9% for the median peer and -1.1% for the United States market (cap-weighted) — 9th highest of 19 in its peer set.
Growth Revenue grew 9.4% over the last twelve months (peer median +10.2%); the operating margin is 18.3% (peer median 9.3%).
Valuation It trades at 20.5× forward earnings against a peer median of 22.8× (9th cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 6% a year for seven years (Req g). Recent delivered growth is +5%, so the hurdle is +1 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 6.0 points above its cost of capital (8.4% WACC).
Credit Encompass Health has 3 bonds outstanding ($1.60B), rated BB- by the agencies and trading like BBB- at a weighted spread of 101 bp.
Short interest Short interest is 3.4% of the free float (15 Oct 2026).
Next results Next results expected around 11 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $6.34B | $5.94B | $5.37B | $4.80B | $4.35B |
| Revenue growth | — | +10% | +12% | +10% | — |
| Gross profit | $1.41B | $1.29B | $1.07B | $934M | $784M |
| EBITDA | $1.52B | $1.38B | $1.16B | $1.01B | $874M |
| Net income | $643M | $565M | $453M | $350M | $270M |
| Free cash flow | $457M | $439M | $360M | $268M | $141M |
| Capital expenditure | $846M | $736M | $642M | $583M | $584M |
| Total debt | $2.80B | $2.71B | $2.71B | $2.93B | $2.99B |
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Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | EHC | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +12.2% | +9.8% | 9th highest of 19 |
| 6-month return | +29.6% | +24.9% | 9th highest of 19 |
| Distance from 52-week high | -4.1% | -10.2% | 4th highest of 19 |
| Revenue growth (TTM) | +9.4% | +10.2% | 10th highest of 19 |
| Operating margin | 18.3% | 9.3% | 3rd highest of 19 |
| Forward P/E | 20.5× | 22.8× | 9th cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 5.6% | 12.9% | 5th least demanding of 17 |
| Growth delivered (Del g) | +5.0% | +13.3% | 6th lowest of 17 |
| Hurdle (Req g minus delivered) | +0.6 pp | -0.6 pp | 8th most demanding of 17 |
| ROIC minus cost of capital | +6.0 pp | +0.1 pp | 4th highest of 19 |
| EV / EBITDA | 11.2× | 15.4× | 5th cheapest of 16 |
| Net debt / EBITDA | 1.8× | 2.8× | 3rd least indebted of 18 |
| Bond spread | 101 bp | 102 bp | 3rd tightest of 6 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Encompass Health EHC | United States | $13.5B | +30% | +9% | 18% | 20.5× | 5.6% | +5.0% |
| BrightSpring Health Services BTSG | United States | $13.4B | +22% | +23% | 4% | 28.3× | 24.2% | +18.3% |
| Fresenius Medical Care FME.DE | Germany | $12.6B | +14% | 0% | 11% | 10.4× | -3.6% | +1.9% |
| Aier Eye Hospital 300015.SZ | China | $12.5B | -16% | +5% | 21% | 29.5× | 11.7% | +13.4% |
| DaVita DVA | United States | $12.0B | -4% | +6% | 15% | 11.9× | -1.1% | +3.4% |
| Solventum SOLV | United States | $15.4B | +23% | -1% | 8% | 12.2× | n/a | n/a |
| Ensign ENSG | United States | $10.6B | +6% | +17% | 9% | 21.1× | 12.0% | +16.5% |
| Sonic Healthcare SHL.AX | Australia | $6.87B | +6% | +14% | 9% | 16.8× | 8.6% | +3.5% |
| Labcorp LH | United States | $29.8B | +45% | +6% | 11% | 19.0× | 13.9% | 0.0% |
| Koninklijke Philips PHIA.AS | Netherlands | $29.8B | +24% | -1% | 10% | 16.5× | 5.7% | +0.6% |
| Hims & Hers Health HIMS | United States | $6.07B | -8% | +28% | 0% | 128.9× | 54.9% | +73.6% |
| RadNet RDNT | United States | $5.98B | +31% | +19% | 5% | 129.7× | 41.8% | +13.7% |
| Concentra Group Holdings Parent CON | United States | $5.38B | +75% | +14% | 17% | 24.5× | 3.9% | +7.9% |
| BillionToOne BLLN | United States | $5.38B | +54% | +90% | 11% | 144.4× | 26.8% | +90.1% |
| Lifestance Health LFST | United States | $5.26B | +79% | +20% | 5% | 62.6× | 37.8% | +30.4% |
| Option Care Health OPCH | United States | $4.74B | +54% | +4% | 6% | 15.6× | 1.5% | +13.2% |
| Medicover MCOV-B.ST | Sweden | $4.14B | +36% | +6% | 7% | 38.3× | 20.8% | +20.2% |
| Dr. Lal PathLabs LALPATHLAB.NS | India | $3.50B | +26% | +17% | 24% | 51.5× | 32.2% | +11.8% |
| Acadia Healthcare ACHC | United States | $3.44B | +47% | +4% | 10% | 18.7× | n/a | n/a |
Encompass Health has 3 bonds outstanding with $1.60B face value. The agencies rate it BB-; its bonds trade like BBB-. Weighted yield 5.52%, a spread of 101 bp over government bonds.