Explain this page
Arphra AIPlain-English read on Encompass Health Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +42.43% | +40.32% | +41.30% | +41.56% | +95.71% | +57.97% | +58.95% | +59.49% | +58.16% |
| Operating margin | +16.42% | +14.49% | +35.92% | +16.09% | +17.74% | +23.78% | +23.05% | +23.17% | +23.84% |
| EBITDA margin | +22.14% | +20.01% | +20.95% | +22.08% | +23.66% | +23.89% | +23.17% | +23.70% | +23.30% |
| EBIT margin | +16.67% | +14.41% | +15.24% | +16.51% | +18.13% | +16.73% | +17.07% | +16.98% | +16.29% |
| Pre-tax margin | +12.58% | +10.37% | +12.65% | +13.95% | +16.06% | +14.30% | +14.58% | +14.17% | +14.07% |
| Net margin | +10.27% | +6.23% | +7.33% | +8.48% | +9.54% | +8.24% | +8.64% | +8.68% | +8.26% |
| Cost structure | |||||||||
| Cost of revenue / sales | +57.57% | +59.68% | +58.70% | +58.44% | +4.29% | +41.23% | +41.56% | +41.38% | +39.69% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +5.69% | +4.81% | +5.37% | +4.96% | +57.47% | +22.47% | +22.59% | +23.09% | +22.33% |
| Effective tax rate | +20.18% | +22.20% | +21.77% | +20.04% | +20.24% | +19.96% | +20.25% | +21.36% | +21.11% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +17.18% | +14.56% | +15.32% | +15.99% | +17.28% | +16.08% | +16.23% | +16.57% | +15.77% |
| Return on assets (ROA) | +6.00% | +4.81% | +5.77% | +6.97% | +7.99% | +6.60% | +7.07% | +7.26% | +6.83% |
| Return on capital (ROC) | +11.21% | +12.98% | +32.98% | +15.54% | +17.58% | +23.13% | +21.89% | +21.94% | +22.80% |
| Return on invested capital (ROIC) | +7.01% | +5.58% | +6.73% | +8.19% | +9.45% | +8.02% | +8.20% | +8.22% | +7.90% |
| Asset turnover | +58.48% | +77.15% | +78.68% | +82.23% | +83.72% | +80.11% | +81.86% | +83.63% | +82.64% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +10.27% | +6.23% | +7.33% | +8.48% | +9.54% | +8.24% | +8.64% | +8.68% | +8.26% |
| Asset turnover (× revenue / assets) | +58.48% | +77.15% | +78.68% | +82.23% | +83.72% | +80.11% | +81.86% | +83.63% | +82.64% |
| Equity multiplier (× assets / equity) | +286.13% | +302.73% | +265.65% | +229.35% | +216.43% | +243.54% | +229.53% | +228.30% | +230.98% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.58 | 0.77 | 0.79 | 0.82 | 0.84 | 0.80 | 0.82 | 0.84 | 0.83 |
| Fixed-asset turnover | 1.45 | 1.38 | 1.37 | 1.40 | 1.38 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 8.00 | 8.10 | 7.85 | 8.97 | 9.59 | — | — | — | — |
| Payables turnover | 17.25 | 19.53 | 16.58 | 18.36 | 1.43 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 45.65 | 45.06 | 46.50 | 40.68 | 38.08 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 21.16 | 18.69 | 22.02 | 19.88 | 255.67 | — | — | — | — |
| Cash conversion cycle | 24.49 | 26.37 | 24.48 | 20.80 | -217.59 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.74 | 2.60 | 2.42 | 2.20 | 2.08 | 2.31 | 2.13 | 2.15 | 2.32 |
| FCF / Net income | 0.40 | 0.45 | 0.76 | 0.79 | 0.78 | 0.79 | 0.75 | 0.75 | 0.81 |
| FCF margin | +4.10% | +2.80% | +5.58% | +6.71% | +7.40% | +6.53% | +6.50% | +6.48% | +6.72% |
| OCF margin | +17.83% | +16.23% | +17.72% | +18.66% | +19.81% | +19.02% | +18.39% | +18.67% | +19.13% |
| CapEx / Revenue | +13.73% | +13.43% | +12.14% | +11.96% | +12.41% | +12.11% | +12.52% | +12.34% | +12.30% |
| CapEx / D&A | 2.51 | 2.40 | 2.13 | 2.14 | 2.25 | — | — | — | — |
| Stock-based comp / Revenue | +0.72% | +0.67% | +1.05% | +0.90% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 4.11 | 2.70 | 3.47 | 4.46 | 5.54 | 6.01 | 6.54 | 7.28 | 8.37 |
| EPS · basic | 4.15 | 2.72 | 3.54 | 4.53 | 5.62 | 6.08 | 6.59 | 7.36 | 8.60 |
| Book value / share | 23.94 | 18.54 | 22.68 | 27.88 | 32.05 | 32.14 | 36.05 | 38.33 | 42.52 |
| Tangible BV / share | 10.02 | 3.15 | 7.28 | 12.40 | 16.14 | 32.14 | 36.05 | 38.33 | 42.52 |
| Sales / share | 40.07 | 43.31 | 47.40 | 52.58 | 58.07 | 62.70 | 67.73 | 73.19 | 81.17 |
| Operating CF / share | 7.14 | 7.03 | 8.40 | 9.81 | 11.50 | 11.92 | 12.46 | 13.66 | 15.53 |
| Free cash flow / share | 1.64 | 1.21 | 2.64 | 3.53 | 4.30 | 4.09 | 4.40 | 4.74 | 5.45 |
| Dividends / share | 1.12 | 0.99 | 0.60 | 0.61 | 0.70 | 0.76 | 0.79 | 0.90 | 0.96 |
| Payout ratio | +27.22% | +36.53% | +17.16% | +13.78% | +12.56% | +14.64% | +13.58% | +14.18% | +14.33% |
| Retention ratio | +72.78% | +63.47% | +82.84% | +86.22% | +87.44% | +85.36% | +86.42% | +85.82% | +85.67% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +8.31% | +10.41% | +11.91% | +10.46% | +8.20% | +8.13% | +8.05% | +9.58% | +9.37% |
| Gross profit · YoY | — | +2.92% | +13.10% | +12.63% | +154.38% | -34.47% | +9.97% | +9.04% | +7.14% | +13.77% |
| Profit | ||||||||||
| Operating income · YoY | — | -4.43% | +173.69% | -49.88% | +21.82% | +45.03% | +4.80% | +8.62% | +12.75% | +14.59% |
| EBITDA · YoY | — | -2.11% | +15.58% | +17.99% | +18.33% | +9.28% | +4.85% | +10.52% | +7.73% | +10.07% |
| Net income · YoY | — | -34.26% | +29.89% | +29.46% | +24.25% | -6.52% | +13.36% | +8.56% | +4.31% | +6.45% |
| Operating | ||||||||||
| EBIT · YoY | — | -6.39% | +16.81% | +21.21% | +21.33% | -0.17% | +10.31% | +7.53% | +5.11% | +9.06% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -34.31% | +28.52% | +28.53% | +24.22% | +8.45% | +8.81% | +11.42% | +14.90% | +9.30% |
| EPS · basic · YoY | — | -34.46% | +30.15% | +27.97% | +24.06% | +8.14% | +8.38% | +11.78% | +16.83% | +9.54% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $3.48B | $2.99B | $2.93B | $2.71B | $2.71B | $3.31B | $3.62B | $3.99B | $4.29B |
| Net debt | $3.43B | $2.97B | $2.83B | $2.63B | $2.61B | $3.19B | $3.49B | $3.85B | $4.15B |
| Net debt / EBITDA | 3.86 | 3.41 | 2.81 | 2.22 | 1.86 | 2.08 | 2.17 | 2.17 | 2.16 |
| Debt / equity | 1.45 | 1.61 | 1.28 | 0.95 | 0.83 | 1.01 | 0.98 | 1.02 | 1.00 |
| Debt / assets | +50.71% | +53.09% | +48.06% | +41.53% | +38.28% | +41.30% | +42.64% | +44.52% | +43.14% |
| Equity / assets | +34.95% | +33.03% | +37.64% | +43.60% | +46.21% | +41.06% | +43.57% | +43.80% | +43.29% |
| Coverage | |||||||||
| EBITDA / interest expense | 5.41 | 4.95 | 7.01 | 8.64 | 11.40 | 9.65 | 9.10 | 9.40 | 9.41 |
| Operating income / interest | 4.01 | 3.59 | 12.02 | 6.29 | 8.55 | 9.61 | 9.05 | 9.19 | 9.63 |
| Interest expense | $164.3M | $175.7M | $143.5M | $137.4M | $123.2M | $158.93M | $176.88M | $189.17M | $203.5M |
| Liquidity | |||||||||
| Current ratio | 1.23 | 1.25 | 1.28 | 1.05 | 1.08 | — | — | — | — |
| Quick ratio | 0.74 | 0.97 | 1.15 | 0.81 | 0.91 | — | — | — | — |
| Cash ratio | 0.07 | 0.04 | 0.16 | 0.10 | 0.12 | — | — | — | — |
| Working capital | $172.6M | $141.3M | $185.4M | $45.9M | $69.5M | — | — | — | — |
| Working capital / revenue | +4.30% | +3.25% | +3.86% | +0.85% | +1.17% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).