ScoreWhy is Encompass Health Corp. ?
1
High Management Efficiency with a high ROCE of 18.36%
2
Poor long term growth as Net Sales has grown by an annual rate of 4.26% and Operating profit at 9.42% over the last 5 years
3
The company has declared Positive results for the last 7 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 1,105.4 MM
- ROCE(HY) Highest at 25.35%
- DEBT-EQUITY RATIO (HY) Lowest at 110.31 %
4
With ROCE of 21.99%, it has a very expensive valuation with a 3.82 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 5.19%, its profits have risen by 30.8% ; the PEG ratio of the company is 0.7
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Encompass Health Corp. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Encompass Health Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Encompass Health Corp.
-18.14%
0.91
26.63%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.03%
EBIT Growth (5y)
10.21%
EBIT to Interest (avg)
4.92
Debt to EBITDA (avg)
2.35
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
1.23
Tax Ratio
18.96%
Dividend Payout Ratio
13.00%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
18.36%
ROE (avg)
27.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
4.56
EV to EBIT
12.55
EV to EBITDA
9.57
EV to Capital Employed
2.91
EV to Sales
2.23
PEG Ratio
0.54
Dividend Yield
0.65%
ROCE (Latest)
23.18%
ROE (Latest)
31.11%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,200.1 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 102.66 %
NET SALES(Q)
Highest at USD 1,586.6 MM
RAW MATERIAL COST(Y)
Fallen by -3.53% (YoY
OPERATING PROFIT(Q)
Highest at USD 388.9 MM
OPERATING PROFIT MARGIN(Q)
Highest at 24.51 %
PRE-TAX PROFIT(Q)
Highest at USD 289.1 MM
NET PROFIT(Q)
Highest at USD 178.42 MM
EPS(Q)
Highest at USD 1.93
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 9.83%
Here's what is working for Encompass Health Corp.
Operating Cash Flow
Highest at USD 1,200.1 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,586.6 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 102.66 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit
Highest at USD 388.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 24.51 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 289.1 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 178.42 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.93
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -3.53% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 87.3 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Encompass Health Corp.
Dividend Payout Ratio
Lowest at 9.83% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income
Highest at USD 0.07 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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