Encompass Health Intrinsic Value – Franklin Resources Increases Investment in Encompass Health After Q1 FY23 Exceeds Expectations
June 8, 2023
🌥️Trending News
Encompass Health ($NYSE:EHC), formerly known as HealthSouth Corporation, is a leading provider of rehabilitation and home health services for patients and families in the United States. The company has recently seen a surge in investor confidence, as Franklin Resources recently increased its investment in the company after the company exceeded expectations in its first quarter of fiscal year 23. The company’s impressive performance was driven by strong revenue growth and significant cost savings across the board. This move marks an impressive show of confidence in the company’s future prospects and is expected to provide a significant boost to Encompass Health’s already-strong financial position.
By continuing to exceed expectations, the company is well-positioned to capitalize on the increasing demand for quality healthcare services and home health care in the United States. With this increased investment, Encompass Health is well-positioned to continue delivering strong financial results in the years ahead.
Price History
On Wednesday, Franklin Resources Inc. increased its investment in ENCOMPASS HEALTH after the healthcare provider reported quarterly results that exceeded expectations for the first quarter of fiscal year 2023. The stock opened at $63.3 and closed at $62.9, down 0.3% from the prior closing price of $63.1. The news of Franklin Resources’ investment is a positive sign for ENCOMPASS HEALTH as it continues to navigate the ever-changing landscape of healthcare and focuses on providing essential services to its patients. With the backing of a major investor such as Franklin Resources, ENCOMPASS HEALTH is well-positioned to continue its mission of delivering high-quality care to those in need. 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 |
| 4.18k | 270.4 | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Encompass Health. More…
| Operations | Investing | Financing |
| 714.8 | -607.9 | -142.8 |
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 |
| 5.75k | 3.78k | 13.87 |
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 |
| -3.6% | -3.2% | 15.0% |
| FCF Margin | ROE | ROA |
| 3.6% | 29.2% | 6.8% |
Analysis – Encompass Health Intrinsic Value
GoodWhale’s analytics team has undertaken an analysis of ENCOMPASS HEALTH‘s financials, and the results of our proprietary Valuation Line suggest that ENCOMPASS HEALTH’s current fair share value is around $48.9. However, ENCOMPASS HEALTH’s stock is currently trading at $62.9, meaning it is overvalued by 28.6%. This discrepancy provides an opportunity for savvy investors to capitalize on the current market pricing and potentially turn a profit. More…
Peers
There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.
– Community Health Systems Inc ($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 Corp. has seen a major increase in investment from Franklin Resources Inc., one of the world’s largest investment management firms. Analysts predict that Encompass Health will continue to be a favorable investment opportunity due to its long-term growth potential. The company is currently outperforming the healthcare sector and has seen an impressive rise in its stock price. Investors are encouraged to consider the company as a solid long-term option in their portfolios.
