Home Sectors Healthcare Stock Under Review: Encompass Health Corporation (NYSE: EHC)

Stock Under Review: Encompass Health Corporation (NYSE: EHC)

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Encompass Health Corporation trades as part of the health care providers industry and is in the healthcare sector. The company CEO is Mark J. Tarr. Encompass Health Corp, formerly Healthsouth Corp provides post-acute healthcare services in the US through a network of inpatient rehabilitation hospitals, home health and hospice agencies. It operates Inpatient Rehabilitation and Home Health and Hospice.

Previous Intraday Trading Performance:

The EHC stock showed a previous change of 2.15% with an open at 60.10 and a close of 60.88. It reached an intraday high of 60.99 and a low of 59.91.

PR Newswire:  Kim Sullivan named Chief Human Resources Officer for Encompass Health

Liquidity:

The stock has a market cap of $6.0b with 98.9m shares outstanding, of which the float is 93.5m shares. Trading volume reached 1,075,815 shares compared to its average volume of 967,026 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Encompass Health Corporation shares returned 4.23% and in the past 30 trading days it returned -1.76%. Over three months, it changed -1.48%. In one year it has changed -5.88% and within that year its 52-week high was 82.46 and its 52-week low was 56.74. EHC stock is 7.30% above its 52 Week Low.

Our calculations show a 200 day moving average of 67.73 and a 50 day moving average of 60.75. Currently EHC stock is trading -10.12% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

PR Newswire:  Kim Sullivan named Chief Human Resources Officer for Encompass Health

Earnings:

The last annual fiscal EPS for the company was reported at 2.93 that ended on 31st of December 2018, which according to the previous close, that is a PE of 20.78. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.89. The TTM EPS is 3.63, which comes to a TTM PE of 16.77. Historically, the PE high was 29.10 and the PE low was 11.40. If the stock reached its PE low, that would represent a price of 41.39, which is a decrease of -32.02%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/25/2019): 1.03
4thQtr of 2018 (Reported on 02/07/2019): 0.28
3rdQtr of 2018 0.89
2ndQtr of 2018 0.92
1stQtr of 2018 0.84

The dividend per share is currently 1.08, which is a dividend yield of 1.77%. Also, the payout ratio is 29.75%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 73.93, which means it is possibly undervalued and has a margin of safety of 17.65%.

Indicators to Watch:

Short-interest was 2,542,469, which was 2.57% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.00. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.80.

PR Newswire:  Energizer Holdings, Inc. Announces Agreement To Sell The Europe-Based Varta® Consumer Battery Business For $401.0 Million

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 25.77%, return on assets is 6.14%, profit margin is 9.17%, price-to-sales is 1.35 and price-to-book is 4.48.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 3  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.