CluenexEncompass Health EHC
Encompass Health scores good on business quality (6.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Encompass Health does
Encompass Health operates inpatient rehabilitation hospitals, providing specialized care paid for primarily by Medicare and private insurers to patients recovering from strokes and major injuries. The company is expanding its hospital bed capacity to meet rising demand from an aging demographic.
- What it does best
Encompass delivers an elite gross margin of 95.8%, crushing peers like HCA at 85.3% through specialized operational focus.
- The main risk
Regulatory changes tied to Medicare reimbursement rates threaten the revenue streams that anchor its inpatient hospital model.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins stand at 18.0% with an ROE of 25.0%, showing stable profitability that scales efficiently as new rehabilitation hospitals open.
Its moat rests on a top-decile gross margin of 96% and specialized hospital assets that lock in local physician referral networks, blocking quick replication by rivals.
Revenue grew 10.5% to $6.2B, accelerating past historical annual figures driven by strong patient volume across inpatient rehab facilities.
Debt-to-equity sits at 1.0x with an interest coverage of 8.9x, while free cash flow reached $413M, pointing to a stable balance sheet getting slightly stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
4 sold $26.4M outside pre-planned sales.
Our sealed record on EHC
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Encompass Health scores good on the Cluenex quality check (6.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: 4 sold $26.4M outside pre-planned sales.
Oct 28, 2026, after the close.
See EHC today
- Today's verdict on EHC, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Encompass Health (EHC)”, https://cluenex.com/stocks/ehc/, data as of Oct 10, 2026.