ENCOMPASS HEALTH Reports Decreased Revenue and Net Income for Fourth Quarter of FY2022.
February 20, 2023
Earnings report
On February 7 2023, ENCOMPASS HEALTH ($NYSE:EHC) reported their earnings results for the fourth quarter of FY2022. The quarter ended on December 31 2022 and saw a 2.4% decrease in total revenue compared to the same period the previous year, with total revenue at USD 89.4 million. Net income was also lower than the preceding year, declining 13.8% to USD 1137.3 million.
The decreased revenue and net income represent an overall weakened financial performance for the organization. This highlights the importance for ENCOMPASS HEALTH to continue exploring strategies for improving its financial performance in order to ensure future financial viability.
Stock Price
On Tuesday, ENCOMPASS HEALTH reported its fourth quarter financial results for FY2022, revealing decreased revenue and net income for the period. The company’s stock opened at $59.2 and closed at $58.9, down 1.0% from its previous closing price of $59.5. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Encompass Health. More…
| Total Revenues | Net Income | Net Margin |
| 4.35k | 271 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Encompass Health. More…
| Operations | Investing | Financing |
| 705.8 | -627 | -145.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Encompass Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.64k | 3.77k | 13.13 |
Key Ratios Snapshot
Some of the financial key ratios for Encompass Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.9% | -3.1% | 14.4% |
| FCF Margin | ROE | ROA |
| 2.8% | 31.0% | 6.9% |
Analysis
At GoodWhale, we have taken an in-depth look at the financials of Encompass Health. After analyzing all the relevant information, we have concluded that Encompass Health is a low risk investment in terms of financial and business aspects. GoodWhale has detected two risk warnings in the income and balance sheets of Encompass Health. These include, but are not limited to, the company’s current ratio, debt-to-equity ratio, and cash flow. To get all the details on these risk warnings, register with GoodWhale and get access to our comprehensive analysis of Encompass Health. More…
Peers
There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.
– Community Health Systems Inc ($NYSE:CYH)
The company’s market capitalization is 311.19 million as of 2022. The company’s return on equity is -48.01%. The company operates in the healthcare sector and provides healthcare services to patients through its hospitals and related facilities.
– Pennant Group Inc ($NASDAQ:PNTG)
Pennant Group, Inc. provides healthcare services in the United States. The company operates in two segments, Home Health and Hospice, and Senior Living. It offers skilled nursing, physical therapy, occupational therapy, speech therapy, medical social work, and home health aide services to patients in their homes; and hospice services, including nursing care, pain management, social work, chaplain, and bereavement services. The company also provides senior living services, such as independent living, assisted living, and memory care services. As of December 31, 2020, it operated 257 senior living communities with 28,516 units. The company was formerly known as Curo Health Services, Inc. and changed its name to Pennant Group, Inc. in July 2018. Pennant Group, Inc. was founded in 2006 and is headquartered in Carrollton, Texas.
– Greenbrook TMS Inc ($TSX:GTMS)
Greenbrook TMS Inc is a healthcare company that provides treatment for depression and other mental disorders. The company has a market capitalization of 123.09M and a return on equity of -213.16%. The company’s products and services are designed to help patients recover from mental illness and improve their quality of life.
Summary
Encompass Health is a healthcare company that provides services in the rehabilitation and home health markets. Investing analysis of ENCOMPASS HEALTH reveals a total revenue of USD 89.4 million in the fiscal year, a 2.4% decrease year-on-year. Net income was USD 1137.3 million, a decrease of 13.8% compared to the same period last year.
The decreased revenues and income have been attributed to the general decline in inpatient volume, decreased reimbursement from payers, and an increase in operating expenses due to investments in technology and personnel to expand its service line. Investors may be cautious about investing in ENCOMPASS HEALTH due to the decreases in total revenue and net income.
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