EHCNYSEServices-HospitalsFiscal year ends December 31
Encompass Health Corp
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 7, 2026
$121.71−6.16 (-4.82%)
Close on Oct 19, 2026
- Market cap
- $12.17B
- P/E (TTM)
- 19.8
- Dividend yield
- 0.59%
Margins
Share of revenue, fiscal years 2011 to 2025
Operating margin
–
Net margin
9.5%+1.6 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +10.5% | +10.9% | +10.7% | – | |
| Net income | +24.2% | +27.8% | +14.8% | +12.0% | |
| EPS, diluted | +24.2% | +27.1% | +14.2% | +11.2% | |
| Free cash flow | +21.9% | +53.4% | +7.1% | +1.6% | |
| Dividend per share | +12.5% | -5.8% | -8.5% | -2.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 36.8% | 19.3% | 25.1% | |
| Return on assets | 5.3% | 4.5% | 8.3% | |
| Current ratio | 1.38 | 1.32 | 1.08 | |
| Debt to equity | 4.10 | 2.07 | 1.02 | |
| Net debt to EBITDA | 3.91× | 4.05× | – | |
| Interest coverage | 3.4× | 3.1× | – | |
| Capex to revenue | 4.9% | 11.0% | 12.4% | |
| Diluted shares | 100M | 100M | 102M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Encompass Health generated $4.45B from operations and spent $3.69B on capital expenditure, dividends and share buybacks. 84% of that went back into the business.
Generated
$4.45B
Used
$3.69B
Capital expenditure$3.09B84%Dividends$405.50M11%Share buybacks$189.10M5%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin9.5%
×Asset turnover0.87×
×Equity multiplier3.02×
=Return on equity, FY202525.1%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 9.5% | 0.87× | 3.02× | 25.1% |
| FY2024 | 8.5% | 0.85× | 3.40× | 24.5% |
| FY2023 | 7.3% | 0.82× | 3.97× | 23.8% |
| FY2022 | 6.2% | 0.70× | 3.88× | 16.8% |
| FY2021 | 10.3% | 0.60× | 3.80× | 23.6% |
| FY2020 | 8.0% | 0.57× | 4.26× | 19.3% |
| FY2019 | 7.8% | 0.82× | 4.28× | 27.3% |
| FY2018 | 6.8% | 0.85× | 4.13× | 24.1% |
| FY2017 | 6.9% | 0.82× | 5.06× | 28.7% |
| FY2016 | 6.8% | 0.78× | 6.89× | 36.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
8of 8 tests passed in fiscal 2025. Some tests lack the figures they need.
- ProfitableNet income above zero$566.20M
- Cash generatingOperating cash flow above zero$1.18B
- Return on assets improvedROA up on the prior year7.5% → 8.7%
- Earnings backed by cashOperating cash flow above net income$1.18B vs $566.20M
- Less leverageLong-term debt to assets fell36.1% → 34.5%
- Better liquidityCurrent ratio rose1.05 → 1.08
- No dilutionShare count did not rise102M → 102M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.88 → 0.91