ENCOMPASS HLTH Stock Analysis, Valuation (NYSE:EHC)

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$52.78 $0.74 (1.42%) EHC stock closing price Feb 21, 2018 (Closing)
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ENCOMPASS HLTH
Updated on : Feb 21, 2018
previous close
EHC 52.8 (0%)
S&P 500 2701.3 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
16%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.62B
Debt/Equity Ratio:
 1.91
Compared to the industry
Cash Flow
Operating cash flow:
$173.8M
Net Income:
$65.9M
Dividend Yield
EHC dividend yield:
1.84%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EHC PS :
1.3
Industry PS :
6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.1%
Return on Equity:
23.7%
Free Cash Flow Margin:
11.4%
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ENCOMPASS HLTH Stock Analysis

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View the ENCOMPASS HLTH stock analysis video on Amigobulls. Our EHC analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ENCOMPASS HLTH Stock Rating 3.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for EHC stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for ENCOMPASS HLTH valuation analysis. Our ENCOMPASS HLTH stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy EHC stock?

  • ENCOMPASS HLTH had a healthy average operating margin of 16% over the last 4 quarters.
  • LTM Net margins were good at 6.7% for ENCOMPASS HLTH.
  • The operating cash flow looks good at 2.6 times the net income.
  • EHC stock is trading at an earnings multiple of 18.9 which is better than the industry average of 23.1.
  • The lower PS ratio 1.3 for EHC stock versus Medical-Outpatient-Home care industry average of 6 is a positive for the company.
  • ENCOMPASS HLTH's return on invested capital of 10.1% is good.
  • ENCOMPASS HLTH has a good Return On Equity (ROE) of 23.7%.
  • The company has a healthy free cash flow margin of 11.4%.

Should you sell EHC stock?

  • With a debt/equity ratio of  1.91, ENCOMPASS HLTH is highly leveraged in comparison to Medical peers.

Comments on this video and ENCOMPASS HLTH stock

Investors can make use of the Amigobulls ENCOMPASS HLTH stock analysis to ascertain how EHC stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, ENCOMPASS HLTH revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.