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Upturn AI SWOT - About
EHC 
Encompass Health Corp (EHC)
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Upturn Advisory Summary
03/11/2025: EHC (4-star) is a REGULAR-BUY. BUY since 25 days. Profits (-4.12%). Updated daily EoD!
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 56.76% | Avg. Invested days 105 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 03/11/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.28B USD | Price to earnings Ratio 22.73 | 1Y Target Price 117.25 |
Price to earnings Ratio 22.73 | 1Y Target Price 117.25 | ||
Volume (30-day avg) 770553 | Beta 0.83 | 52 Weeks Range 77.98 - 104.18 | Updated Date 04/2/2025 |
52 Weeks Range 77.98 - 104.18 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.67% | Basic EPS (TTM) 4.49 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.48% | Operating Margin (TTM) 16.53% |
Management Effectiveness
Return on Assets (TTM) 8.65% | Return on Equity (TTM) 23.29% |
Valuation
Trailing PE 22.73 | Forward PE 20.79 | Enterprise Value 12828218255 | Price to Sales(TTM) 1.91 |
Enterprise Value 12828218255 | Price to Sales(TTM) 1.91 | ||
Enterprise Value to Revenue 2.39 | Enterprise Value to EBITDA 10.81 | Shares Outstanding 100709000 | Shares Floating 99326370 |
Shares Outstanding 100709000 | Shares Floating 99326370 | ||
Percent Insiders 1.32 | Percent Institutions 97.02 |
Analyst Ratings
Rating 4.85 | Target Price 116.5 | Buy 2 | Strong Buy 11 |
Buy 2 | Strong Buy 11 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Encompass Health Corp
Company Overview
History and Background
Encompass Health Corp. was founded in 1984 as HealthSouth Rehabilitation Corporation. It has grown through acquisitions and organic expansion to become a leading provider of post-acute healthcare services. The company rebranded as Encompass Health in 2018.
Core Business Areas
- Inpatient Rehabilitation: Provides intensive rehabilitation services in inpatient rehabilitation facilities (IRFs) for patients recovering from conditions such as stroke, spinal cord injury, brain injury, and amputation.
- Home Health: Offers home-based healthcare services, including skilled nursing, therapy, and other healthcare services, to patients in their homes.
Leadership and Structure
Mark Tarr serves as the CEO. The company has a hierarchical organizational structure with regional and facility-level management reporting to corporate leadership.
Top Products and Market Share
Key Offerings
- Inpatient Rehabilitation Services: Comprehensive rehabilitation programs for patients recovering from various debilitating conditions. Encompass Health operates a large network of IRFs, offering specialized care and therapies. Competitors include Select Medical (SEM), Kindred Healthcare, and numerous regional and local providers. It is estimated that Encompass Health has 5.8% of the fragmented $42B inpatient rehabilitation market (2023).
- Home Health Services: A range of home healthcare services, including skilled nursing, physical therapy, occupational therapy, and speech therapy. This segment caters to patients requiring medical care and rehabilitation in their homes. Competitors include Amedisys (AMED), LHC Group, and national chains, such as Interim HealthCare and Visiting Angels. Encompass Health's Home Health business was sold to Option Care Health (OCRX) in March 2024. Market share for Home Health was approximently 1.5% of $130B US home care market.
Market Dynamics
Industry Overview
The post-acute healthcare market is driven by an aging population, increasing prevalence of chronic diseases, and a shift towards value-based care. The market is competitive and fragmented, with a mix of national and regional players.
Positioning
Encompass Health is a leading provider of inpatient rehabilitation services with a strong brand reputation and a large network of facilities. The business benefits from a growing demand for post-acute care services and the company's ability to provide high-quality care. They recently divested their Home Health business to focus on IRF.
Total Addressable Market (TAM)
The total addressable market for post-acute care, encompassing inpatient rehabilitation and home healthcare, is estimated to be over $170 billion. Encompass Health is well-positioned to capture a significant share of this market, particularly in the inpatient rehabilitation segment.
Upturn SWOT Analysis
Strengths
- Large network of inpatient rehabilitation facilities
- Strong brand reputation
- Experienced management team
- Focus on quality care
- Divestiture of Home Health business allows greater focus on IRF
Weaknesses
- Exposure to regulatory changes and reimbursement pressures
- Labor shortages in the healthcare industry
- Geographic concentration of facilities
- High capital expenditure requirements for facility expansion and maintenance
Opportunities
- Expanding into new geographic markets
- Acquiring smaller rehabilitation providers
- Developing new rehabilitation programs and services
- Leveraging technology to improve patient care and efficiency
- Capitalizing on the growing demand for post-acute care services
Threats
- Increased competition from other rehabilitation providers
- Changes in government reimbursement policies
- Economic downturn affecting patient volumes
- Rising operating costs, including labor and supplies
- Cybersecurity threats and data breaches
Competitors and Market Share
Key Competitors
- SEM
- LHCG
- USPH
Competitive Landscape
Encompass Health has a competitive advantage due to its large network of facilities and strong brand reputation. However, the company faces competition from other national and regional providers, as well as pressures from regulatory changes and reimbursement policies.
Major Acquisitions
Alliance HealthCare System
- Year: 2016
- Acquisition Price (USD millions): 200
- Strategic Rationale: Expanded Encompass Health's presence in the Birmingham, Alabama market.
Growth Trajectory and Initiatives
Historical Growth: Encompass Health has grown through organic expansion and acquisitions, expanding its network of inpatient rehabilitation facilities. The company has also divested its home health business.
Future Projections: Analysts project continued growth for Encompass Health, driven by the aging population and increasing demand for rehabilitation services. The company's focus on inpatient rehabilitation is expected to fuel future growth.
Recent Initiatives: Recent initiatives include expanding the network of inpatient rehabilitation facilities, investing in technology to improve patient care, and the divestiture of the home health business.
Summary
Encompass Health is a leading inpatient rehabilitation provider, poised for growth in a favorable market driven by demographics. The divestiture of the home health business allows greater focus on its core strength. Regulatory changes and rising costs pose potential challenges. Encompass Health's financial strength and market position make it a stable investment within the healthcare sector, although expansion and market dynamics need close monitoring.
Similar Companies
SEM
Select Medical Holdings
SEM
Select Medical Holdings
USPH
US Physicalrapy Inc
USPH
US Physicalrapy Inc
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Market Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Actual results may vary. Market share data is approximate.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Encompass Health Corp
Exchange NYSE | Headquaters Birmingham, AL, United States | ||
IPO Launch date 1986-09-30 | CEO, President & Director Mr. Mark J. Tarr | ||
Sector Healthcare | Industry Medical Care Facilities | Full time employees 23564 | Website https://www.encompasshealth.com |
Full time employees 23564 | Website https://www.encompasshealth.com | ||
Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was incorporated in 1984 and is based in Birmingham, Alabama.
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