EHCEncompass Health Corp
Services-Hospitals
- Revenue
- $5.9B
- 10% YoY
- Operating margin
- —
- EBITDA
- —
- Market cap
- $13.4B
- Employees
- 40,000
- $148K revenue each
- Net debt / EBITDA
- —
- $2.5B net debt
- AI in 10-K
- 0.8
- mentions per 10K words
Takeover score 1 of 13
Fixable underperformance 0 of 7
- TSR below peersNo1 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$9M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo208% of net incomeCash flow under 80% of net income
- Dilutive SBCNo1% of revenueOver 10% of revenue
- Payouts exceed cash flowNo19% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo18% of assetsOver 40% of assets
- Shareholder dissentNo97% lowest supportAny vote under 80% support
Buyer economics 0 of 4
- Low revenue per employeeNo$148K · 26th pctBottom quartile of its SIC industry
- Quiet on AINo0.8 per 10K words · 29th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo3.2× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedNo$13.4B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$48M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $4.0B | $4.3B | $4.8B | $5.4B | $5.9B | 10% |
| Operating income | $560M | $540M | — | — | — | |
| Net income | $412M | $271M | $352M | $456M | $566M | 24% |
| Operating cash flow | $716M | $706M | $851M | $1.0B | $1.2B | 17% |
| Capex | $525M | $565M | $583M | $643M | $736M | 15% |
| Stock-based comp | $29M | $29M | $51M | $48M | $57M | 17% |
| Buybacks | $0 | $0 | $0 | $31M | $158M | 408% |
| Dividends | $112M | $99M | $60M | $63M | $71M | 13% |
Deal filings
None.
13D filers
None on file.
Insider trading
- Open-market buys, 12 mo
- $0 · 0
- Open-market sells, 12 mo
- $48M · 18
- Net
- −$48M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $10M | $21M | 170 | 113 |
| FY2024 | $9M | $18M | 147 | 95 |
| FY2023 | $9M | $14M | 106 | 93 |
| FY2022 | $8M | $10M | 94 | 88 |
| FY2021 | $8M | $6M | 80 | 110 |