Encompass Health Stock Intrinsic Value – Q3 Earnings: What Does the Future Hold for Encompass Health?
October 28, 2023
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Encompass Health ($NYSE:EHC) Corporation (NYSE: EHC) is a post-acute care provider that offers a range of services from inpatient rehabilitation to home health and hospice services. Investors will closely be watching Encompass Health’s Q3 earnings to determine what the future holds for the company. Much of this increase is due to the company’s successful expansion into new markets.
Additionally, the company has been able to increase revenue by offering more home health and hospice services in addition to its traditional inpatient rehabilitation services. Investors will be watching to see if the company is able to maintain its growth trajectory or if the economic effects of the pandemic will have a negative impact on its performance. Additionally, investors will be watching to see if the company can continue to execute its expansion strategy, as well as its ability to capitalize on new opportunities for growth.
Earnings
The recently released fiscal year 2021 Q2 earnings report of ENCOMPASS HEALTH show that the organization earned a total revenue of 1287.7M USD and achieved a net income of 113.3M USD. This was a 3.2% decrease in total revenue compared to the previous year, however there was a 132.6% increase in net income. Over the past 3 years, ENCOMPASS HEALTH’s total revenue has decreased from 1287.7M USD to 1187.1M USD.
The company must find ways to increase their total revenue and maintain their net income if they want to remain successful and competitive within the industry. Looking ahead, it will be interesting to see what strategies ENCOMPASS HEALTH employ to achieve these goals.
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% |
Share Price
On Wednesday, ENCOMPASS HEALTH released its Q3 earnings, and the stock opened at $62.2 and closed at $62.0, down by 0.8% from the prior closing price of 62.5. Encompass Health is well positioned to capitalize on the growth in the post-acute care sector, as the demand for healthcare services continues to rise. The company has a strong balance sheet and is expected to continue to increase its revenue in the coming quarters.
Additionally, Encompass Health has continued to invest in its infrastructure and technology that will help drive its growth in the future. In terms of its outlook, analysts expect ENCOMPASS HEALTH to report an increase in earnings in the coming quarters, driven by its strong market presence and focus on delivering high quality care. Furthermore, the company is continuing to expand its network of healthcare providers, which should drive increased utilization and revenues. Ultimately, ENCOMPASS HEALTH’s financial performance over the last quarter provides an indication as to how well the company has been performing and what the future might hold for it. The company’s continued investment in technology and infrastructure, coupled with its strong market presence, bode well for its future growth prospects. Live Quote…
Analysis – Encompass Health Stock Intrinsic Value
Having conducted an assessment of ENCOMPASS HEALTH‘s well-being, GoodWhale has determined its intrinsic value to be around $35.2. This figure has been calculated using our proprietary Valuation Line, which takes into account a variety of factors such as past performance, industry trends, and the current market climate. However, ENCOMPASS HEALTH stock is currently being traded at $62.0, which indicates that it is overvalued by 76.3%. More…
Peers
There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.
– Community Health Systems Inc ($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
Analysts are looking for signs of improvement in the company’s key metrics, such as occupancy rates and admissions numbers. Investors will be closely watching the company’s long-term outlook, as well as its progress in executing its strategic initiatives. They will also be keeping an eye out for any potential cost savings plans and any updates on the company’s new partnerships. Overall, investors should be looking for signs of continued revenue growth and improvements in operating efficiency.
