Encompass Health Corporation cash flow to debt ratio of 43.32% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Encompass Health Corporation's free cash flow has increased 21.90% from $360.30M last year to $439.20M, signaling increasing performance

Encompass Health Corporation's debt to equity ratio is 1.09, which means that the company's assets are unhealthy financed, signaling financial risk.

Encompass Health Corporation's debt has decreased relative to shareholder equity from 1.31 last year to 1.09 today, signaling strengthened financials

Encompass Health Corporation has a net debt to EBITDA ratio of 1.83x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Encompass Health Corporation's interest coverage ratio of 8.89 indicates that earnings with good margin can cover interest payments on company debt

Encompass Health Corporation's profit margin has increased (17.99%) in the last year from 8.48% to 10.01%, signaling increasing performance

Encompass Health Corporation's short-term assets of $905.90M exceed its short-term liabilities of $836.40M

Encompass Health Corporation's return on assets of 8.33% is higher than the 5.00% threshold, indicating efficient asset utilization

Encompass Health Corporation's return on equity of 25.01%, is higher than 15.00%, indicating good performance

Encompass Health Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Encompass Health Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Encompass Health Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Encompass Health Corporation has a free cash flow yield of 3.52%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Encompass Health Corporation's yearly earnings has increased 24.25% since last year from $455.70M to $566.20M, signaling increasing performance

Encompass Health Corporation's yearly revenue has increased 10.46% since last year from $5.37B to $5.94B, signaling increasing performance

ROIC 13.37% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Encompass Health Corporation's 3-year revenue CAGR of 10.92% is positive, indicating growing revenue over the past 3 years

Encompass Health Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Encompass Health Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Encompass Health Corporation is overvalued relative to its fair value price of 46.01 based on Discounted Cash Flow model

Encompass Health Corporation has an earnings yield of 5.00%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Encompass Health Corporation is overvalued relative to its fair value price of 71.74 based on EBITDA multiple model

Encompass Health Corporation has an EV/EBITDA ratio of 10.72x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Encompass Health Corporation is undervalued relative to its fair value price of 196.56 based on Earnings Fair Value model

Encompass Health Corporation has a PEG-ratio over 1 which is considered overvalued

Encompass Health Corporation has a price-to-book ratio of 3.59x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Encompass Health Corporation has a price-to-sales ratio of 2.00x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue