Encompass Health Stock Fair Value – Q4 2023 EPS Estimates for Encompass Health Co. Lowered by Analyst
November 10, 2023
🌧️Trending News
Encompass Health ($NYSE:EHC) Co. (EHC), a provider of integrated healthcare services, has seen its Q4 2023 earnings per share (EPS) estimates reduced by analysts. The company operates inpatient rehabilitation hospitals, home health and hospice agencies, and provides inpatient care and post-acute care. Analysts have reduced their earnings forecast for Encompass Health Co.’s fourth quarter of 2023. Encompass Health has taken various measures to maintain financial strength and liquidity during this challenging time. The company has renegotiated existing agreements with third-party payors, implemented cost-saving initiatives, and adjusted its capital expenditure plans.
It also recently announced the sale of its home health and hospice operations. Despite the uncertain outlook for healthcare services, Encompass Health Co. continues to focus on providing quality care to its patients. The company is striving to position itself for long-term success and believes that its strategies have the potential to unlock additional growth opportunities.
Earnings
The company’s recent Q3 2023 earning report, as of September 30 2021, showed total revenue of 1284.8M USD and net income of 100.0M USD. This marks a 17.9% increase in total revenue and a 120.3% increase in net income compared to the same period in the previous year. Over the last 3 years, Encompass Health‘s total revenue has dropped from 1284.8M USD to 1206.9M USD.
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% |
Share Price
This news sent Encompass Health Co. stock down slightly, with the stock opening at $62.8 and closing at $63.3, up by 1.1% from the previous closing price of $62.6. Despite the decreased estimate, analysts remain confident in the long-term prospects of Encompass Health Co., believing it is still a strong buy for investors. Live Quote…
Analysis – Encompass Health Stock Fair Value
We at GoodWhale recently conducted an analysis of ENCOMPASS HEALTH‘s wellbeing, and found that its intrinsic value is around $36.5. This value was calculated with our proprietary Valuation Line, an analytical tool that takes into account a company’s financials, competitive landscape, and industry trends in order to determine its value. Currently, ENCOMPASS HEALTH stock is traded at $63.3, which is overvalued by 73.2%. As experienced financial advisors, we urge investors to remain cautious and consider all the factors before investing in this company. More…
Peers
There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.
– Community Health Systems Inc ($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
Investment analysts have recently revised their outlook for Encompass Health Co. (ENC), lowering their estimates for the company’s earnings per share (EPS) in the fourth quarter of 2023. Despite this downgrade, analysts remain optimistic about the company’s long-term prospects. They cite ENC’s highly diversified portfolio of healthcare services, strong management team, and favorable reimbursement environment as key drivers of growth and value creation. The company has also used innovative pricing strategies and technology advancements to improve operational efficiencies and increase its competitive advantages.
Additionally, ENC has a strong balance sheet and a history of delivering healthy returns to shareholders. Investors should continue to monitor the company closely and take advantage of any undervalued opportunities.
