Encompass Health Corp. (EHC) intrinsic value & 10-year financials
Encompass Health Corp. (EHC) has a Graham intrinsic value of $117.10 per share. At $127.87 on Oct 17, 2026, the stock trades 9% above that value. Over the last 10 fiscal years revenue grew 5.6% a year to $5.9B, with an average return on invested capital of 10.0%.
- Graham intrinsic value
- $117.10
- Share price (Oct 17, 2026)
- $127.87
- Price vs Graham value
- 9% above
- Market cap
- $13.1B
- Revenue (FY2025)
- $5.9B
- Revenue growth (10-yr CAGR)
- 5.6%
- ROIC (10-yr avg)
- 10.0%
- Free cash flow (FY2025)
- $439.2M
EHC 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $5.9B | $566.2M | $5.54 | $439.2M | — | 12.4% |
| FY2024 | $5.4B | $455.7M | $4.46 | $360.3M | — | 10.6% |
| FY2023 | $4.8B | $352.0M | $3.47 | $267.7M | — | 8.5% |
| FY2022 | $4.3B | $271.0M | $2.70 | $141.0M | 12.4% | 8.6% |
| FY2021 | $5.1B | $412.2M | $4.11 | $186.9M | 10.9% | 8.6% |
| FY2020 | $4.6B | $284.2M | $2.85 | $308.7M | 12.1% | 9.3% |
| FY2019 | $4.6B | $358.7M | $3.61 | $262.9M | 13.3% | 11.6% |
| FY2018 | $4.3B | $292.3M | $2.93 | $507.9M | 13.0% | 10.7% |
| FY2017 | $3.9B | $256.3M | $2.69 | $431.4M | 14.8% | 9.7% |
| FY2016 | $3.6B | $247.6M | $2.59 | $427.8M | 16.1% | 9.6% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Encompass Health Corp has demonstrated mature, steady growth, with revenue compounding at 5.6% annually over the past decade.
Encompass Health Corp returns on capital have been average, hovering around 10.0% ROIC over the decade.
Encompass Health Corp has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Encompass Health Corp is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $117.10 per share.