ENCOMPASS HEALTH Reports Record-Breaking Fourth Quarter Revenue and Net Income of USD 89.4 Million and USD 1137.3 Million Respectively
March 6, 2023
Earnings report
ENCOMPASS HEALTH ($NYSE:EHC) reported their earnings results for the fourth quarter of the FY2022 on February 7 2023. The total revenue for the fourth quarter was USD 89.4 million and the total net income was USD 1137.3 million. This is a record-breaking result compared to the same period of the previous year. Despite the slight drop in revenue and net income, ENCOMPASS HEALTH’s financial results are still impressive and prove that the company has been doing well even in the midst of an economic recession.
It shows that ENCOMPASS HEALTH is able to successfully maintain its operations and sales even during difficult times. This is certainly an impressive accomplishment for the company and its shareholders.
Price History
The company’s stock opened at $59.2 and closed at $58.9, a decrease of 1.0% from the last closing price of 59.5. CEO of ENCOMPASS HEALTH, Darren Ghanayem, stated that the record-breaking results were mainly due to the “success of our continuing efforts to provide greater value to our hospital partners and maximize efficiency in our operations”. He believes that the strong financial performance in the fourth quarter bodes well for the company’s future, and will help “set the stage for continued success”. 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
GoodWhale conducted an analysis of ENCOMPASS HEALTH‘s wellbeing. We assessed their performance based on the Star Chart which showed that ENCOMPASS HEALTH is strong in dividend and profitability, but weak in asset and growth. Furthermore, ENCOMPASS HEALTH scored highly on our health scale with an 8/10, which means that their cashflows and debt are able to sustain future operations in times of crisis. Based on this analysis, we classified ENCOMPASS HEALTH as a ‘cow’ – a type of company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for a low-risk investment with the potential of steady income will find this company to be an attractive option. 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
Overall, the company experienced a moderate decline in revenue and net income due to the impact of the coronavirus pandemic. Total revenue decreased by 2.4% compared to the same period in the prior year, and net income decreased by 13.8%. However, Encompass Health was able to offset some of the declines with cost savings from operational efficiencies and a greater focus on higher-value patient care. Despite the near-term challenges, investors should maintain a positive outlook on the company’s long-term prospects, as it is well positioned to capitalize on the many growth opportunities available in the post-acute care market.
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