Stock analysis · Bull Rankings model

EHC analysis

Encompass Health CorporationMedical Care Facilities. Scored on the same transparent model behind the daily rankings.

EHC
Encompass Health Corporation · Medical Care Facilities
FCF$413mC
Rev+9.5%B
D/E0.82C
P/E20.1xA-
PEG0.41A
68.1Score
$120.14$11.9B
1Y Target$148.17Analyst consensus · 12 analysts
5Y Target$187.06Compound horizon
10Y Target$239.90Long-dated conviction
FCF$413mTTM
C
FCF $413m — modest; watch for margin expansion
Rev+9.5%TTM YoY
B
Revenue +9.5% — at or above S&P median
D/E0.82
C
D/E 0.82 — more levered than most Healthcare peers (≈90th pctile)
P/E20.1x
A-
P/E 20.1 — cheaper than most Healthcare peers (≈25th pctile)
PEG0.41
A
PEG 0.41 — exceptional; paying well under fair value for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.1
Quality68.2
Growth73.5
Value63.1
Why this score
  • Buying back stock
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
6% off the 12-month high
vs DCF fair value16% aboveest. fair value ~$104
What the price assumes: free cash flow compounding at ~10% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC11.2% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Medical Care Facilities · market cap $11.9b. 6% off the 52-week high of $127.99. PEG 0.41 — paying under fair value for the growth rate. 12 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $148.17 (implying +23% upside).
Moat
ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon
1-3 yr $148.17 (12-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $187.06 at ~9% CAGR — dividend + buyback compounding. 10 yr $239.90 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

EHC vs the Top Picks average

PillarEHCBook avgDiff
Quality0.680.83-0.15
Growth0.730.87-0.13
Value0.630.76-0.13

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-3.6 over 49 daily scores
From 71.7 (Jun 22) → 68.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

EHC at a glance

THE BULL RANKINGS SCORECARD68.1/ 100 · BULL SCOREPEER MEDIANQUALITY68.2GROWTH73.5VALUE63.1Reverse-DCF · Price implies ~10% growth a year from here.
PRICE vs OUR DCF FAIR VALUE$95.4$117FAIR-VALUE RANGE$120PRICEOur DCF fair value ~$104 · price $120 is 14% above it.
WHERE THIS SCORE SITS0255075100EHC 68.1Top 11% of 1,825 scored names.
PRICE IN ITS 52-WEEK RANGE$120$92.8 LOWHIGH $128Trading at the 78th percentile of its 52-week range ($92.8–$128).

Every figure here comes from the same audited fundamentals behind the score. Charts drawn from data the score does not use say so on the card.

Analyst estimate revisions

30-day change+2.2%
90-day change+2.1%
Forward EPS estimate$6.68

Over the last 90 days, what analysts expect EHC to earn is drifting higher (+2.1%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
16
Position size
$1,922
3.8% of portfolio
Stop price
$90.11
25% below $120.14
$ at risk if stopped
$480.56
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Encompass Health Corporation (EHC): score, valuation & FAQ

Encompass Health Corporation (EHC) is a Medical Care Facilities company that scores 68.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A) and P/E (A-). On valuation, EHC sits about 16% above our discounted-cash-flow fair value — the current price implies roughly 10% annual free-cash-flow growth over the next decade.

Is EHC a good stock to buy?

Bull Rankings scores EHC 68.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A) and P/E (A-). A score is a quantitative screen of Encompass Health Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does EHC score 68.1 on Bull Rankings?

The score leans on growth at 73.5 out of 100, with value the weakest pillar at 63.1 — the three combine geometrically, so a weak one cannot be papered over by a strong one. EHC earns its highest marks on PEG (A) and P/E (A-). Each signal is graded against sector-aware thresholds rather than one absolute bar, so EHC is measured against Medical Care Facilities peers, not against the market as a whole.

Is EHC overvalued or undervalued?

Based on $120.14, EHC sits about 16% above our discounted-cash-flow fair value — the current price implies roughly 10% annual free-cash-flow growth over the next decade. It trades at a 20.1x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in EHC?

Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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