EHC
HealthcareEncompass Health Corporation · Medical - Care Facilities · $10B
What is Encompass Health Corporation?
Encompass Health Corporation is a large-cap U.S. healthcare company specializing in post-acute care. It operates one of the nation's largest networks of inpatient rehabilitation hospitals alongside a substantial home health and hospice business.
Encompass Health generates revenue through two core segments. The Inpatient Rehabilitation segment runs specialized hospitals treating patients recovering from stroke, brain and spinal cord injuries, complex orthopedic conditions, cardiac and pulmonary issues, and amputations. The Home Health and Hospice segment delivers Medicare-certified nursing, therapy, and social work services to patients at home, primarily across the Southeast and Texas, and provides in-home hospice care to terminally ill patients and their families.
Founded in 1983 and headquartered in Birmingham, Alabama, the company rebranded from HealthSouth Corporation to Encompass Health in January 2018.
- Inpatient rehabilitation hospitals across 42 states and Puerto Rico
- Medicare-certified home health nursing and therapy services
- In-home hospice care for terminally ill patients
- Outpatient rehabilitative treatment programs
- Physical, occupational, and speech therapy services
Is EHC a Good Stock to Buy?
UQS Score rates EHC as Good overall, reflecting a balanced but nuanced profile across the five quality pillars.
Valuation stands out as the most favorable pillar for EHC, suggesting the stock is not excessively priced relative to its fundamentals. Quality, Moat, and Growth all register as Neutral, indicating the business holds a steady position in its niche without dramatic outperformance or underperformance versus peers.
The Risk pillar is rated Weak, which is the most notable flag in EHC's profile — investors should weigh balance-sheet and sector-specific regulatory risks carefully before sizing a position.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does EHC pay dividends?
Yes — Encompass Health Corporation pays a dividend.
Encompass Health pays a regular dividend, which is relatively uncommon among growth-oriented healthcare operators. The dividend reflects the company's ability to generate recurring cash flows from its hospital and home health networks. Income-focused investors may find this appealing, though the Risk pillar rating warrants attention when assessing dividend sustainability.
When does EHC report earnings?
Encompass Health reports earnings on a quarterly cadence, consistent with standard practice for U.S.-listed equities.
The company's Neutral Growth pillar suggests revenue and earnings expansion has been measured rather than accelerating. Reimbursement rate changes and labor costs in post-acute care tend to be the key swing factors in any given quarter.
For the most recent quarter's results and guidance, visit Encompass Health's investor relations page directly.
EHC Price History
+58.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Encompass Health Corporation?
Based on Encompass Health Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
EHC Long-term Outlook
The Neutral Growth pillar points to a steady but unspectacular expansion trajectory for Encompass Health. Demand for post-acute rehabilitation and home health services is structurally supported by an aging U.S. population, yet the Weak Risk pillar signals that regulatory, reimbursement, and leverage headwinds could temper that trajectory. The Good Valuation pillar suggests the market is not pricing in aggressive growth, which may limit downside if growth disappoints.
Growth drivers
- Aging U.S. population increasing demand for inpatient rehabilitation and hospice services
- Continued geographic expansion of home health and hospice locations
- Medicare reimbursement rate updates supporting revenue per patient
Key risks
- Regulatory and reimbursement policy changes from CMS affecting post-acute care operators
- Elevated financial leverage flagged by the Weak Risk pillar
- Labor cost pressures common across the healthcare services sector
EHC vs Peers
Encompass Health competes with a range of healthcare services companies, though its rehabilitation hospital focus gives it a distinct niche.
DaVita focuses on kidney care and dialysis services rather than rehabilitation, making it a different type of specialized post-acute operator.
UHS operates a broader mix of acute care and behavioral health hospitals, giving it more diversified but less rehabilitation-specific exposure.
Ensign Group concentrates on skilled nursing facilities and senior living communities, overlapping with post-acute care but through a different care setting than Encompass Health's rehabilitation hospitals.
Frequently Asked Questions
What does Encompass Health do?
Encompass Health operates inpatient rehabilitation hospitals and a home health and hospice network across the United States. Its hospitals treat patients recovering from stroke, brain injuries, orthopedic conditions, and other complex diagnoses. Its home health arm delivers nursing and therapy services to patients in their own homes, primarily in the Southeast and Texas.
Does EHC pay dividends?
Yes, Encompass Health pays a regular dividend. This is relatively uncommon among healthcare services operators of its type and reflects the company's recurring cash flow from its hospital and home health networks. Investors should review the company's investor relations page for the current dividend rate and payment schedule.
When does EHC report earnings?
Encompass Health reports on a quarterly cadence, as is standard for U.S.-listed companies. For the exact date of the next earnings release, check the company's investor relations page or a financial calendar service, as our data source does not carry forward-looking earnings dates.
Is EHC a good stock to buy?
UQS Score rates EHC as Good overall. The Valuation pillar is favorable, while Quality, Moat, and Growth are Neutral. The Weak Risk pillar is the primary concern. Whether EHC fits your portfolio depends on your risk tolerance and investment goals — the full pillar breakdown is available to UQS Pro members.
Is EHC overvalued?
The UQS Valuation pillar for EHC is rated Good, suggesting the stock is not trading at an excessive premium relative to its fundamentals. That said, valuation is one of five pillars — the complete picture requires reviewing Quality, Growth, Moat, and Risk together, which Pro members can access in full.
How does EHC compare to its competitors?
Encompass Health's rehabilitation hospital focus differentiates it from broader hospital operators like Universal Health Services and skilled nursing specialists like Ensign Group. Its combination of inpatient rehab and home health under one company is relatively distinctive in the post-acute care landscape. See the competitor section above for a side-by-side UQS comparison.
What is EHC's market cap bracket?
Encompass Health is classified as a large-cap company. This places it among the more established and liquid names in the healthcare services sector, typically associated with greater analyst coverage and institutional ownership than mid- or small-cap peers.
Who founded Encompass Health?
The company was founded in 1983 and was originally known as HealthSouth Corporation. It rebranded to Encompass Health Corporation in January 2018. Detailed founding history is widely available through the company's official investor relations materials and public records.
Is EHC a long-term quality investment?
As a long-term quality indicator, EHC's Good overall UQS Score reflects a business with structural demand tailwinds from an aging population, offset by a Weak Risk pillar that signals leverage and regulatory exposure. Long-term investors should weigh those risks alongside the stable, recurring nature of post-acute care revenues.
What is the main competitive advantage of Encompass Health?
Encompass Health's scale in inpatient rehabilitation — operating nearly 150 hospitals across 42 states — creates network density that is difficult for smaller operators to replicate. Its integrated model spanning inpatient rehab and home health also allows it to serve patients across the post-acute care continuum, which can be a referral and retention advantage.
What sector does EHC belong to?
EHC operates in the Healthcare sector, specifically within healthcare services and post-acute care. Investors comparing EHC to sector peers should note that its rehabilitation hospital focus makes it more specialized than general acute-care hospital operators. Explore more [healthcare sector stocks](/sector/healthcare) on UQS Score.
Is EHC a growth stock or value stock?
Based on its UQS pillar profile, EHC sits closer to the value end of the spectrum. The Growth pillar is Neutral, indicating measured rather than high-velocity expansion, while the Valuation pillar is rated Good — suggesting the market is not pricing in aggressive growth expectations.
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Pro Analysis
EHC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 56.9 | 69.8 | 50.0 | 50.2 | 39.6 | 73.2 | +3.3 |
| May 4, 2026 | 53.6 | 59.4 | 50.0 | 49.6 | 38.0 | 70.8 | 0.0 |
| May 3, 2026 | 53.6 | 59.4 | 50.0 | 49.5 | 38.0 | 70.8 | -0.3 |
| May 1, 2026 | 53.9 | 59.4 | 50.0 | 49.5 | 38.0 | 72.9 | +0.2 |
| Apr 26, 2026 | 53.7 | 59.4 | 50.0 | 49.5 | 38.0 | 71.6 | +0.2 |
| Apr 24, 2026 | 53.5 | 59.4 | 50.0 | 49.4 | 38.0 | 70.4 | +0.1 |
| Apr 23, 2026 | 53.4 | 59.4 | 50.0 | 49.4 | 38.0 | 69.7 | +0.1 |
| Apr 19, 2026 | 53.3 | 59.0 | 50.0 | 49.4 | 38.0 | 69.6 | +0.1 |
| Apr 18, 2026 | 53.2 | 59.0 | 50.0 | 49.4 | 38.0 | 69.1 | -0.1 |
| Apr 16, 2026 | 53.3 | 59.1 | 50.0 | 49.4 | 38.0 | 69.8 | 0.0 |
EHC — Pillar Breakdown
Quality
— 69.8/100 (25%)Encompass Health Corporation shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 50.3/100 (20%)Encompass Health Corporation shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 39.6/100 (15%)Encompass Health Corporation has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 72.9/100 (15%)Encompass Health Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 50/100 (25%)Encompass Health Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for EHC.
Score Composition
Financial Data
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How is the EHC UQS Score Calculated?
The UQS (Unified Quality Score) for Encompass Health Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Encompass Health Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Encompass Health Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.