Stock analysis · Bull Rankings model

EHC analysis

Encompass Health CorporationMedical Care Facilities. Scored on the same transparent 7-signal model behind the daily rankings.

EHC
Encompass Health Corporation · Medical Care Facilities
FCF$464mC
Rev+10.0%B
D/E0.83C+
P/E18.9xA-
PEG0.41A
71.2Score
$110.16$10.9B
1Y Target$140.50Analyst consensus · 12 analysts
5Y Target$177.38Compound horizon
10Y Target$227.48Long-dated conviction
FCF$464mTTM
C
FCF $464m — modest; watch for margin expansion
Rev+10.0%TTM YoY
B
Revenue +10.0% — at or above S&P median
D/E0.83
C+
D/E 0.83 — above the Healthcare debt median (≈75th pctile)
P/E18.9x
A-
P/E 18.9 — 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 · 71.2
Quality0.68
Growth0.76
Value0.69
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
14% off the 12-month high
vs DCF fair value4% belowest. fair value ~$114
What the price assumes: free cash flow compounding at ~5% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC11.5% · Breturn on invested capital — not score-weighted
Why now
Medical Care Facilities · market cap $10.9b. 14% off the 52-week high of $127.99. Revenue growing +10%, comfortably above the S&P median. 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 $140.50 (implying +28% 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 $140.50 (12-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $177.38 at ~10% CAGR — dividend + buyback compounding. 10 yr $227.48 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.
Trend
-0.5 over 15 daily scores
From 71.7 (Jun 22) → 71.2 (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.

Shares to buy
18
Position size
$1,983
4.0% of portfolio
Stop price
$82.62
25% below $110.16
$ at risk if stopped
$495.72
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 71.2 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 4% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade.

Is EHC a good stock to buy?

Bull Rankings scores EHC 71.2 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 71.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). EHC earns its highest marks on PEG (A) and P/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is EHC overvalued or undervalued?

Based on $110.16, EHC sits about 4% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade. It trades at a 18.9x× 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 adviser.

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