Encompass Health Intrinsic Value Calculation – Encompass Health Expands Presence in Wisconsin with Second Hospital
November 18, 2023
☀️Trending News
Encompass Health ($NYSE:EHC), a leading provider of post-acute healthcare services in the United States, is expanding its presence in Wisconsin with the opening of a second hospital. This move marks a major milestone for both the state and the company. ENCOMPASS HEALTH provides comprehensive integrated post-acute care and rehabilitative services through its network of hospital-based and freestanding rehabilitation hospitals, acute medical rehabilitation hospitals, home health agencies, hospice agencies, inpatient rehabilitation units, and ambulatory surgery centers. The company’s mission is to provide high quality, comprehensive healthcare services that improve the lives of patients and their families. This second hospital is a major addition to Encompass Health’s existing infrastructure in Wisconsin. It will offer an array of healthcare services including inpatient and outpatient therapy, acute care, wound care, critical care, and other specialty services.
With this new addition, Encompass Health is now able to serve more patients throughout Wisconsin and increase access to quality healthcare. Encompass Health’s commitment to the people of Wisconsin demonstrates a dedication to providing high quality, comprehensive healthcare services that improve the lives of patients and their families. This opening marks a major milestone for both Encompass Health and the state of Wisconsin and is sure to have a positive impact on the healthcare landscape for years to come.
Price History
On Friday, Encompass Health, a leading provider of post-acute healthcare services, announced its second hospital in Wisconsin. This move marks the company’s continued expansion in the state, providing patients with access to superior healthcare services. The news boosted investor confidence, as the stock opened at $64.2 and closed at $64.3, up 0.8% from the previous closing price of 63.8. This rise in share price demonstrates the market’s belief in Encompass Health’s potential for growth in the Wisconsin area. The new hospital will offer an array of services in post-acute care, including inpatient rehabilitation, home health and hospice services, as well as long-term acute care and assisted living.
All of these services are designed to provide patients with the highest level of care and comfort. With this new facility, Encompass Health is providing Wisconsin residents with access to quality care that is tailored to their individual needs. The company is dedicated to helping individuals foster a healthier lifestyle and regain their independence. 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 |
| 4.69k | 352.6 | 7.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Encompass Health. More…
| Operations | Investing | Financing |
| 822 | -601.1 | -183.8 |
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 |
| 5.96k | 3.78k | 15.57 |
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 |
| 0.6% | 5.3% | 15.8% |
| FCF Margin | ROE | ROA |
| 5.4% | 30.4% | 7.7% |
Analysis – Encompass Health Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of ENCOMPASS HEALTH‘s fundamentals. Our proprietary Valuation Line estimates the intrinsic value of ENCOMPASS HEALTH’s share at around $36.5. However, the current market price of the stock is much higher at $64.3, which means that the stock is currently overvalued by 75.9%. We advise investors to wait until the stock returns to its intrinsic value before investing in ENCOMPASS HEALTH. More…
Peers
There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.
– Community Health Systems Inc ($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
Investing in Encompass Health (formerly HealthSouth Corporation) presents a compelling opportunity for investors. The company is the nation’s largest provider of rehabilitation and inpatient care services, and offers a broad array of offerings to its patients. Its recent acquisition of a hospital in Wisconsin has opened up additional markets, allowing for further expansion.
The company also boasts a strong track record of increasing its margins, and has been able to grow its earnings at a robust rate over the past few years. With its recent expansion and solid underlying fundamentals, Encompass Health appears to be an attractive investment opportunity for those seeking potential growth and income.
