ENCOMPASS HEALTH Reports Strong Q2 Earnings for FY2023
August 6, 2023
☀️Earnings Overview
For the quarter ending June 30 2023, ENCOMPASS HEALTH ($NYSE:EHC) reported revenues of USD 1187.1 million, a decrease of 10.8% from the same quarter in FY2022. Net income was USD 91.4 million, an increase of 87.7% year over year.
Share Price
On Tuesday, ENCOMPASS HEALTH reported strong second quarter earnings for the fiscal year 2023 with their stock opening at $65.9 and closing at $66.0, down by just 0.1% from prior closing price of 66.0. The company attributed their strong performance to cost-saving initiatives, such as optimizing their operating structure and investing in new technology, which increased efficiency and allowed them to maintain their competitive edge.
Additionally, their focus on expanding access to care and improving quality of care enabled them to maximize their patient-centricity strategy. ENCOMPASS HEALTH is optimistic about the remainder of the year and is expected to continue its success throughout the rest of the fiscal year. Their commitment to providing quality, accessible healthcare continues to set them apart in the industry and is reflected in their financial results. 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 |
| 4.03k | 313.2 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Encompass Health. More…
| Operations | Investing | Financing |
| 676.9 | -613.2 | -167 |
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 |
| 5.86k | 3.8k | 14.72 |
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 |
| -4.3% | 1.6% | 16.4% |
| FCF Margin | ROE | ROA |
| 2.8% | 28.9% | 7.0% |
Analysis
GoodWhale has conducted an analysis of ENCOMPASS HEALTH‘s fundamentals and, based on our Star Chart, we are pleased to report that the health score of 8/10 is quite high. This means that, considering its cashflows and debt, ENCOMPASS HEALTH is capable of sustaining its future operations even in times of crisis. Additionally, GoodWhale has classified ENCOMPASS HEALTH as a ‘cow’ type of company – one that we have determined has a track record of paying out consistent and sustainable dividends. Therefore, investors looking for stable dividend yields and loan opportunities may be especially interested in this company. Finally, we have also found that ENCOMPASS HEALTH performs well in terms of dividend yield and profitability; however, it is fairly weak in terms of asset and growth. As such, investors should take caution when investing in this company. 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 reported strong financial results for the second quarter of FY2023. Revenue declined 10.8% year-over-year, but net income increased 87.7%. This suggests that the company is managing costs effectively and is able to generate a profit despite challenging market conditions.
Investors should consider Encompass Health as a potential investment in the healthcare sector due to its strong financial performance and long-term prospects for growth. It is important to research and assess the risks associated with investing in any company, including Encompass Health, before making any decisions.
Related Posts
Recent Posts
