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 10.33%, 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.
10.37%
1.19
26.52%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.26%
EBIT Growth (5y)
9.42%
EBIT to Interest (avg)
4.92
Debt to EBITDA (avg)
2.35
Net Debt to Equity (avg)
0.95
Sales to Capital Employed (avg)
1.21
Tax Ratio
18.96%
Dividend Payout Ratio
14.35%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
18.36%
ROE (avg)
27.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
6.49
EV to EBIT
17.37
EV to EBITDA
13.02
EV to Capital Employed
3.82
EV to Sales
2.91
PEG Ratio
0.71
Dividend Yield
35.19%
ROCE (Latest)
21.99%
ROE (Latest)
30.29%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
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 1,105.4 MM
ROCE(HY)
Highest at 25.35%
DEBT-EQUITY RATIO
(HY)
Lowest at 110.31 %
NET SALES(Q)
Highest at USD 1,457.7 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,115.13
RAW MATERIAL COST(Y)
Fallen by -7.2% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 9.43 times
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 12.24%
Here's what is working for Encompass Health Corp.
Operating Cash Flow
Highest at USD 1,105.4 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 1,457.7 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 1,115.13
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 110.31 % 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
Debtors Turnover Ratio
Highest at 9.43 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -7.2% (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 79.9 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 12.24%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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