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Encompass HealthMEX:EHC 76 Debt-to-Equity is 1.11 as of Mar. 2026, which is 48% below its 10-year median of 2.12. GuruFocus rates MEX:EHC with a GF Score™ of 76/100 and a GF Value™ of MXN1,962.35 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 557 Healthcare Providers & Services companies, Encompass Health ranks worse than 76.3% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Encompass Health's Debt-to-Equity or its related term are showing as below:
MEX:EHC'
s Debt-to-Equity Range Over the Past 10 Years
Min: 1.11 Med: 2.12 Max: 4.59
Current: 1.11
During the past 13 years, the highest Debt-to-Equity Ratio of Encompass Health was 4.59. The lowest was 1.11. And the median was 2.12.
MEX:EHC's Debt-to-Equity is ranked worse than 76.3% of 557
companies
in the Healthcare Providers & Services industry
Industry Median: 0.41
vs MEX:EHC: 1.11
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Encompass Health Debt-to-Equity Related Terms
Encompass Health Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Encompass Health's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:EHC vs ENSG, UHS, PACS: Debt-to-Equity Comparison
For the Medical Care Facilities subindustry, Encompass Health's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Encompass Health Debt-to-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Encompass Health's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Encompass Health (MEX:EHC) has a Debt-to-Equity of 1.11 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Encompass Health and its competitors. This is 48% below median its historical median of 2.12. Over the past decade, Encompass Health's Debt-to-Equity has ranged from 1.11 to 4.59. According to the industry distribution chart, Encompass Health ranks #425 out of 557 companies in the Healthcare Providers & Services industry, placing it in the top 76.3%.
Is Encompass Health's Debt-to-Equity too high?
Encompass Health's current Debt-to-Equity of 1.11 is 48% below median its 10-year median of 2.12. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 4.59. The Healthcare Providers & Services industry median Debt-to-Equity is 0.41. Encompass Health's value of 1.11 is 170.7% above this industry median. Based on the distribution chart, Encompass Health ranks #425 out of 557 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Encompass Health has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's Debt-to-Equity compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #425 out of 557 companies for Debt-to-Equity. This places Encompass Health in the lower half of its industry. The industry median Debt-to-Equity is 0.41. Encompass Health's value of 1.11 is 170.7% above this benchmark. Historically, Encompass Health's own Debt-to-Equity has ranged from 1.11 to 4.59 over the past decade. While the company's 10-year median is 2.12 vs. the industry median of 0.41, Encompass Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Healthcare Providers & Services company?
The median Debt-to-Equity among Healthcare Providers & Services companies is 0.41, based on 557 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current Debt-to-Equity of 1.11 is 170.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Debt-to-Equity is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Debt-to-Equity is 1.11, which is 48% below median its own 10-year median of 2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encompass Health stock overvalued right now?
Based on GuruFocus' analysis, Encompass Health (MEX:EHC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,962.35, compared to a current price of MXN1,935.00 — trading 1.4% below its estimated fair value. The current Debt-to-Equity is 1.11, which is 48% below median its 10-year median of 2.12 and 170.7% above the Healthcare Providers & Services industry median of 0.41. Encompass Health's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Debt-to-Equity is 1.11 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Encompass Health (MEX:EHC) Overvalued in 2026?
Based on GuruFocus' analysis, Encompass Health stock appears to be undervalued.
The current stock price of MXN1,935.00 is trading 1.4% below its estimated GF Value™ of MXN1,962.35.
GuruFocus considers Encompass Health to be Significantly Overvalued.
Key valuation signals for MEX:EHC:
Debt-to-Equity: 1.11 (48% below median its 10-year median of 2.12)
GF Value™: MXN1,962.35 vs. price of MXN1,935.00 (1.4% below fair value)
Industry Position: 170.7% above the Healthcare Providers & Services median (#425 of 557)
No single metric tells the full story. See the MEX:EHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals, which is the company's sole segment. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. The company's inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.
76GF Score
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