Encompass Health Corp(EHC)Stock Analysis
AI analysis on 2,800+ stocks →Deep AI analysis on 2,800+ stocks →13F Pro Quality Score
Rank #391 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
EHC Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Encompass Health Corp (EHC), a Healthcare sector company. 13F Pro's AI-powered ranking engine scores EHC at 68.9/100 on a 32-signal composite quality model, placing it at rank #391 of 2,879 stocks — the top 25% of the AI-ranked universe. EHC scores in the top quartile across balance sheet strength (83.7), revenue scale (80.6). Areas of concern include institutional flow (18.4), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q1 2026), Encompass Health Corp reports quarterly revenue of $1.6B, net income of $194.5M, an operating margin of 18.2%. Top institutional holders of EHC by reported 13-F value include BlackRock,, VANGUARD PORTFOLIO MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. EHC trades on the NYSE exchange and files with the SEC under CIK 785161. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate EHC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Encompass Health Corp directly from SEC EDGAR. Encompass Health Corp's 13F Pro composite quality score has ranged between 8 and 70 since 2021, currently 68.9 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving EHC's Business? Latest 10-Q Breakdown
✓ 24/24 datapoints verifiedAI-extracted from Encompass Health Corp's 10-Q filed 2026-05-01 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Encompass Health's Q1 revenue surged 9.0% YoY to $1,586.6M, driven by 4.3% discharge growth and improved pricing, while net income attributable to shareholders jumped 28.4% to $194.5M.
Biggest Revenue Drivers
Total revenue: $1,586.6M+9.0% YoY
Volume growth from new hospitals (Athens GA, Fort Myers FL, Amarillo TX, Daytona Beach FL, Danbury CT, St. Petersburg FL, Lake Worth FL, Irmo SC) and same-store discharge increase of 1.6%.
Increase of $15.3M in Medicaid supplemental payments and higher investment gains.
Largest Expense Items
Salary and benefit cost increases and increased FTEs from development activities; decreased as % of revenue due to Medicaid supplemental payments and lower contract labor and sign-on bonuses.
Increased provider taxes and higher costs from development activities, partially offset by lower legal costs.
Reflects capital investments in new hospitals and bed additions.
Higher costs associated with transition to new enterprise resource planning system, Oracle Fusion.
Margins: Operating margin improved slightly, with total operating expenses declining from 81.7% to 81.0% of net operating revenues. Improvement was driven by favorable Medicaid supplemental payments and operational leverage from volume growth, partially offset by higher provider taxes and Oracle Fusion transition costs.
Watch Items from the Filing
- Medicare revenue concentration: 65.5% of revenues from Medicare in Q1 2026 (down from 67.0% in Q1 2025). CMS's 2027 Proposed IRF Rule projects net 2.4% payment increase effective October 1, 2026; however, expansion of Review Choice Demonstration to Texas and California effective March-May 2026 will subject 33 hospitals (11.9% of IRF Medicare claims) to enhanced pre-claim review with uncertain impa
- Capital intensity and debt: Company spent $162M on capex in Q1 with $920M-$995M budgeted for 2026, funded by cash and revolving credit facility draws. Debt increased to $2,573.8M as of March 31, 2026 from $2,490.8M at year-end 2025; refinanced credit agreement due 2031.
- Ongoing litigation and contingencies: Company may be subject to undisclosed qui tam cases under False Claims Act; has made disclosures to HHS regarding suspected Medicare overpayments and continues to face regulatory audits and investigations in highly regulated healthcare environment.
- Discontinued operations gain: $15.9M after-tax gain in Q1 2026 from settlement of litigation claims against former executives of divested home health/hospice business; non-recurring item.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$1.6B
Net Income
Q1 2026
$194.5M
Free Cash Flow
Q1 2026
$150.7M
Operating Margin
Q1 2026
18.2%
D/E Ratio
Q1 2026
1.02
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+23.6% YoYNet Income
+60.9% YoYOperating Income
EPS (Diluted)
+59.7% YoYTotal Assets
+16.2% YoYTotal Debt
-8.2% YoYOp. Cash Flow
| Metric | FY 2025 | FY 2023 | FY 2022 | FY 2019 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|
| Revenue | $5.94B +23.6% | $4.80B +10.4% | $4.35B -5.6% | $4.61B +17.7% | $3.91B +7.4% | $3.64B |
| Net Income | $566.2M +60.9% | $352.0M +29.9% | $271.0M -24.4% | $358.7M +32.3% | $271.1M +9.5% | $247.6M |
| Operating Income | — | — | $539.5M -11.9% | $612.1M +5.8% | $578.3M -1.7% | $588.1M |
| EPS (Diluted) | $5.54 +59.7% | $3.47 +28.5% | $2.70 -25.2% | $3.61 +27.1% | $2.84 +9.7% | $2.59 |
| Total Assets | $7.09B +16.2% | $6.10B +8.3% | $5.64B -7.3% | $6.08B +25.0% | $4.86B +3.9% | $4.68B |
| Total Debt | $2.49B -8.2% | $2.71B -2.0% | $2.77B -9.7% | $3.06B +18.8% | $2.58B -14.5% | $3.02B |
| Operating Cash Flow | — | — | $705.8M +11.1% | $635.3M -3.5% | $658.3M +3.8% | $634.4M |
AI Insight: EHC Financial Trends
Revenue grew 22% over two years to $1,587M in Q1 2026, but debt increased $143M in latest quarter after six quarters of deleveraging.
• Revenue increased from $1,301M in Q2 2024 to $1,587M in Q1 2026, representing 22% growth over eight quarters.
• Net income surged 28% quarter-over-quarter from $146M in Q4 2025 to $194M in Q1 2026.
• Equity expanded steadily from $1,839M in Q2 2024 to $2,522M in Q1 2026, a 37% increase.
⚠ Total debt jumped $83M to $2,574M in Q1 2026 after declining from $2,717M to $2,433M through Q3 2025.
⚠ Revenue growth decelerated to 2.7% quarter-over-quarter in Q1 2026, down from 4.5% in Q4 2025.
AI Insight: EHC Ratio Trends
Encompass Health delivered its strongest quarterly profitability in Q1 2026 with operating margin hitting 18.2% and net margin reaching 12.3%.
• Operating margin expanded from 14.3% in Q2 2024 to 18.2% in Q1 2026, marking sustained profitability improvement.
• Net profit margin climbed from 8.8% in Q2 2024 to 12.3% in Q1 2026, reflecting strong earnings conversion.
• Debt-to-equity ratio declined from 1.48 in Q2 2024 to 1.02 in Q1 2026, indicating meaningful deleveraging.
• ROIC improved from 16.3% in Q2 2024 to 22.7% in Q1 2026, demonstrating enhanced capital efficiency.
⚠ ROE volatility with quarterly swings from 21.3% in Q3 2025 to 30.9% in Q1 2026 suggests earnings lumpiness.
⚠ Operating margin dipped to 14.9% in Q3 2025 before rebounding, indicating potential seasonal pressures.
Get alerted when EHC's score changes
Free account: watchlist tracking, the daily AI brief, and the AI screener.
Available Research
13F Pro tracks comprehensive data for Encompass Health Corp including:
Top Institutional Holders of EHC
BlackRock, Inc.
$1.0B10,768,713 shVANGUARD PORTFOLIO MANAGEMENT LLC
$479.7M4,959,545 shVANGUARD CAPITAL MANAGEMENT LLC
$432.0M4,466,237 shWELLINGTON MANAGEMENT GROUP LLP
$372.3M3,848,855 shInvesco Ltd.
$327.5M3,386,105 shSTATE STREET CORP
$304.2M3,144,974 shALLIANCEBERNSTEIN L.P.
$278.2M2,621,245 shFULLER & THALER ASSET MANAGEMENT, INC.
$215.7M2,229,979 shTWO SIGMA INVESTMENTS, LP
$214.9M2,222,101 shGEODE CAPITAL MANAGEMENT, LLC
$183.7M1,898,667 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $1.0B | 10,768,713 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $479.7M | 4,959,545 |
| VANGUARD CAPITAL MANAGEMENT LLC | $432.0M | 4,466,237 |
| WELLINGTON MANAGEMENT GROUP LLP | $372.3M | 3,848,855 |
| Invesco Ltd. | $327.5M | 3,386,105 |
| STATE STREET CORP | $304.2M | 3,144,974 |
| ALLIANCEBERNSTEIN L.P. | $278.2M | 2,621,245 |
| FULLER & THALER ASSET MANAGEMENT, INC. | $215.7M | 2,229,979 |
| TWO SIGMA INVESTMENTS, LP | $214.9M | 2,222,101 |
| GEODE CAPITAL MANAGEMENT, LLC | $183.7M | 1,898,667 |
More Healthcare Companies
View all Healthcare →Put EHC on your watchlist
Track score changes the day Encompass Health Corp files with the SEC, follow the hedge funds that own it, screen 2,800+ AI-scored stocks, and get the daily brief — free.
Free tier includes 13F data, economic indicators, and market overview. Pro starts at $6.67/mo (billed annually).
Popular Research
Is EHC a good stock to buy?
13F Pro's AI-powered analysis of Encompass Health Corp (EHC) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Healthcare sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for EHC are available on the EHC stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own EHC?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling EHC. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Encompass Health Corp's investment landscape.