Encompass Health (EHC) Stock Analysis

November 11, 2026

This is a peer-relative look at Encompass Health (EHC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Health Care Equipment & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Encompass Health (EHC)
Profile Item	EHC
Name	Encompass Health Corporation
Country/Region	United States
GICS Sector	Health Care
GICS Industry Group	Health Care Equipment & Services
GICS Industry	Health Care Providers & Services
GICS Sub-Industry	Health Care Facilities
Market Capitalization	13.50 billion USD
Currency	USD
Exchange	NYSE
Listing Date	September 24, 1986
Security Type	Common Stock

Price Performance

Cumulative Growth

EHC

GSPC

Encompass Health (EHC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Encompass Health (EHC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Encompass Health (EHC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Total Return (1Y)	22.16%	21.53%
Total Return (3Y, Annualized)	30.96%	9.81%
Total Return (5Y, Annualized)	23.55%	-2.76%

Risk Profile

Drawdown History

EHC

GSPC

Encompass Health (EHC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Encompass Health (EHC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Volatility (1Y, Annualized)	30.54%	50.93%
Beta (5Y)	0.82	0.85
Max Drawdown (5Y)	-27.33%	-70.34%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. EHC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Sharpe Ratio (1Y)	0.59	0.34
Sortino Ratio (1Y)	1.08	0.54

Profitability

ROE (TTM)

Encompass Health (EHC) posts ROE of 25.11%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

EHC

Health Care Equipment & Services industry group

25.11%

Group distribution

Max: 47.61%
EHC: 25.11%
Q3: 14.36%
Median: 5.45%
Q1: -10.67%
Min: -47.01%

Largest peers

EHC: 25.11%
ISRG: 17.93%
SYK: 16.02%
UNH: 15.77%
MDT: 10.65%
ABT: 9.14%
MCK: --

Where Encompass Health (EHC) stands on ROE within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Encompass Health (EHC) keeps 10.17% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

EHC

Health Care Equipment & Services industry group

10.17%

Group distribution

Max: 29.35%
EHC: 10.17%
Q3: 9.33%
Median: 2.18%
Q1: -6.29%
Min: -28.46%

Largest peers

ISRG: 25.54%
MDT: 13.93%
SYK: 13.78%
EHC: 10.17%
ABT: 9.75%
UNH: 3.53%
MCK: 1.12%

Where Encompass Health (EHC) stands on net margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Encompass Health (EHC) turns 18.07% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

EHC

Health Care Equipment & Services industry group

18.07%

Group distribution

Max: 35.43%
EHC: 18.07%
Q3: 14.14%
Median: 6.81%
Q1: -0.28%
Min: -16.29%

Largest peers

ISRG: 33.29%
SYK: 22.96%
MDT: 19.33%
EHC: 18.07%
ABT: 11.66%
UNH: 5.82%
MCK: 1.48%

Where Encompass Health (EHC) stands on operating margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
ROE (TTM)	25.11%	5.45%
ROA (TTM)	10.08%	3.17%
Net Margin (TTM)	10.17%	2.18%
Operating Margin (TTM)	18.07%	6.81%
Gross Margin (TTM)	44.15%	55.21%

Growth

Revenue Growth

Encompass Health (EHC) grew revenue 10.46%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Encompass Health (EHC): Revenue Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

EPS Growth

Encompass Health (EHC) grew earnings per share 24.22%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Encompass Health (EHC): EPS Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

Growth Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Revenue Growth (YoY)	10.46%	11.55%
Revenue Growth (3Y CAGR)	10.92%	10.83%
EPS Growth (YoY)	24.22%	4.88%
EPS Growth (3Y CAGR)	27.07%	14.59%

Financial Strength

Current Ratio (MRQ)

Encompass Health (EHC) has current ratio of 1.09, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

EHC

Health Care Equipment & Services industry group

1.09

Group distribution

Max: 7.59
Q3: 4.00
Median: 1.98
Q1: 1.37
EHC: 1.09
Min: 0.30

Largest peers

ISRG: 3.33
SYK: 2.18
MDT: 2.07
ABT: 1.46
EHC: 1.09
MCK: 0.90
UNH: 0.74

Where Encompass Health (EHC) stands on current ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Encompass Health (EHC) has debt-to-equity ratio of 0.79, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

EHC

Health Care Equipment & Services industry group

0.79

Group distribution

Max: 1.88
Q3: 0.91
EHC: 0.79
Median: 0.58
Q1: 0.16
Min: 0.00

Largest peers

EHC: 0.79
UNH: 0.70
SYK: 0.66
ABT: 0.61
MDT: 0.55
ISRG: --
MCK: --

Where Encompass Health (EHC) stands on debt-to-equity ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Current Ratio (MRQ)	1.09	1.98
Debt / Equity (MRQ)	0.79	0.58
Net Debt / EBITDA	1.79	2.04

Dividends

Dividend Yield (TTM)

Encompass Health (EHC) has dividend yield of 0.55%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

EHC

Health Care Equipment & Services industry group

0.55%

Group distribution

EHC: 0.55%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MDT: 2.72%
UNH: 2.29%
ABT: 2.22%
SYK: 1.05%
EHC: 0.55%
MCK: 0.32%
ISRG: 0.00%

Where Encompass Health (EHC) stands on dividend yield within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Encompass Health (EHC) has payout ratio of 12.48%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

EHC

Health Care Equipment & Services industry group

12.48%

Group distribution

EHC: 12.48%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

ABT: 92.54%
MDT: 70.02%
UNH: 51.71%
SYK: 37.49%
EHC: 12.48%
MCK: 8.77%
ISRG: 0.00%

Where Encompass Health (EHC) stands on payout ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
Dividend Yield (TTM)	0.55%	0.00%
Dividend Payout Ratio (TTM)	12.48%	0.00%

Valuation

P/E Ratio (TTM)

Encompass Health (EHC) trades at P/E ratio of 22.01, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

EHC

Health Care Equipment & Services industry group

22.01

Group distribution

Max: 80.41
Q3: 47.62
Median: 29.93
EHC: 22.01
Q1: 21.19
Min: 4.21

Largest peers

ISRG: 54.75
ABT: 41.02
SYK: 34.70
MCK: 27.36
MDT: 25.01
UNH: 22.50
EHC: 22.01

Where Encompass Health (EHC) stands on P/E ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Encompass Health (EHC) trades at 2.13 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

EHC

Health Care Equipment & Services industry group

2.13

Group distribution

Max: 8.80
Q3: 4.32
EHC: 2.13
Median: 2.13
Q1: 1.10
Min: 0.03

Largest peers

ISRG: 13.82
SYK: 4.72
ABT: 3.95
MDT: 3.47
EHC: 2.13
UNH: 0.78
MCK: 0.29

Where Encompass Health (EHC) stands on P/S ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Encompass Health (EHC) trades at 5.04 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

EHC

Health Care Equipment & Services industry group

5.04

Group distribution

Max: 11.68
Q3: 6.12
EHC: 5.04
Median: 3.00
Q1: 1.73
Min: -1.31

Largest peers

ISRG: 9.82
SYK: 5.29
EHC: 5.04
ABT: 3.73
UNH: 3.60
MDT: 2.59
MCK: -30.85

Where Encompass Health (EHC) stands on P/B ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Encompass Health (EHC) metric values compared with Health Care Equipment & Services industry-group medians
Metric	Current stock: EHC	Industry group median
P/E Ratio (TTM)	22.01	29.93
P/S Ratio (TTM)	2.13	2.13
P/B Ratio (MRQ)	5.04	3.00
Free Cash Flow Yield (TTM)	1.97%	3.50%