Analyzing the Price-to-Earnings Ratio of Encompass Health Corp (EHC)

BLFR

The price-to-earnings ratio for Encompass Health Corp (NYSE: EHC) is above average at 24.72x. The 36-month beta value for EHC is also noteworthy at 0.91. There are mixed opinions on the stock, with 11 analysts rating it as a “buy,” 2 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”

The public float for EHC is 99.18M, and at present, short sellers hold a 0.89% of that float. The average trading volume of EHC on June 12, 2025 was 831.14K shares.

EHC) stock’s latest price update

Encompass Health Corp (NYSE: EHC) has experienced a rise in its stock price by 0.27 compared to its previous closing price of 119.41. However, the company has seen a fall of -1.29% in its stock price over the last five trading days. zacks.com reported 2025-06-12 that Whether you’re a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.

EHC’s Market Performance

Encompass Health Corp (EHC) has seen a -1.29% fall in stock performance for the week, with a 1.80% gain in the past month and a 27.81% surge in the past quarter. The volatility ratio for the week is 0.66%, and the volatility levels for the past 30 days are at 0.87% for EHC. The simple moving average for the past 20 days is -0.53% for EHC’s stock, with a 18.41% simple moving average for the past 200 days.

Analysts’ Opinion of EHC

Many brokerage firms have already submitted their reports for EHC stocks, with KeyBanc Capital Markets repeating the rating for EHC by listing it as a “Overweight.” The predicted price for EHC in the upcoming period, according to KeyBanc Capital Markets is $115 based on the research report published on October 11, 2024 of the previous year 2024.

Leerink Partners, on the other hand, stated in their research note that they expect to see EHC reach a price target of $100. The rating they have provided for EHC stocks is “Outperform” according to the report published on July 10th, 2024.

Barclays gave a rating of “Overweight” to EHC, setting the target price at $95 in the report published on March 06th of the previous year.

EHC Trading at 5.92% from the 50-Day Moving Average

After a stumble in the market that brought EHC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.76% of loss for the given period.

Insider Trading

Reports are indicating that there were more than several insider trading activities at EHC starting from Tarr Mark J, who sale 118,384 shares at the price of $121.53 back on May 20 ’25. After this action, Tarr Mark J now owns 527,070 shares of Encompass Health Corp, valued at $14,387,152 using the latest closing price.

Mark Tarr, the Officer of Encompass Health Corp, proposed sale 118,384 shares at $121.50 during a trade that took place back on May 20 ’25, which means that Mark Tarr is holding shares at $14,383,656 based on the most recent closing price.

Stock Fundamentals for EHC

Current profitability levels for the company are sitting at:

  • 0.17 for the present operating margin
  • 0.36 for the gross margin

The net margin for Encompass Health Corp stands at 0.09. The total capital return value is set at 0.16. Equity return is now at value 25.33, with 7.68 for asset returns.

Based on Encompass Health Corp (EHC), the company’s capital structure generated 0.56 points at debt to capital in total, while cash flow to debt ratio is standing at 0.39. The debt to equity ratio resting at 1.25. The interest coverage ratio of the stock is 6.9.

Currently, EBITDA for the company is 1.19 billion with net debt to EBITDA at 2.09. When we switch over and look at the enterprise to sales, we see a ratio of 2.66. The receivables turnover for the company is 8.84for trailing twelve months and the total asset turnover is 0.83. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.06.

Conclusion

In summary, Encompass Health Corp (EHC) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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