Encompass Health Corporation [NYSE:EHC]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Encompass Health Corporation [EHC], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give EHC an Outperform rating. Its stock price has been found in the range of 10.06 to 14.49. This is compared to its latest closing price of $65.30.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Encompass Health Corporation [EHC] is sitting at 1.87. This is compared to 1 month ago, when its average rating was 1.87.
For the quarter ending in Dec-18 Encompass Health Corporation [EHC] generated $1.1 billion in sales. That’s 0.44% higher than the average estimate of $1.09 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Thu 25 Apr (In 71 Days).
Fundamental Analysis of Encompass Health Corporation [EHC]
Now let’s turn to look at profitability: with a current Operating Margin for Encompass Health Corporation [EHC] sitting at +15.94 and its Gross Margin at +21.08, this company’s Net Margin is now 7.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.84, and its Return on Invested Capital has reached 12.70%. Its Return on Equity is 23.20, and its Return on Assets is 5.75. These metrics all suggest that Encompass Health Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Encompass Health Corporation [EHC] has generated a Total Debt to Total Equity ratio of 189.18. Similarly, its Total Debt to Total Capital is 65.42, while its Total Debt to Total Assets stands at 48.10. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 186.49, and its Long-Term Debt to Total Capital is 64.49. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.02 and its Total Debt to EBITDA Value is 2.85. The Enterprise Value to Sales for this firm is now 2.06, and its Total Debt to Enterprise Value stands at 0.28.
Similarly, this company’s Receivables Turnover is 9.10 and its Total Asset Turnover is 0.85. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 0.98.
Let’s now turn our attention to trading performance: Encompass Health Corporation [EHC] has 103.94M shares outstanding, amounting to a total market cap of $6.83B. Its stock price has been found in the range of 50.63 to 82.46. At its current price, it has moved by -20.34% from its 52-week high, and it has moved 29.75% from its 52-week low.
This stock’s Beta value is currently 0.77, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.56. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Encompass Health Corporation [EHC] a Reliable Buy?
Shares of Encompass Health Corporation [EHC], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.