Encompass Health (MEX:EHC) EBIT: MXN20,593 Mil (TTM As of Mar. 2026)


MEX:EHC Encompass Health Corp MEX:EHC
88 GF Score
Price MXN1,280.08
GF Value MXN1,344.64
! 1 Warning Sign
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What is Encompass Health EBIT?

Encompass Health MEX:EHC 88 EBIT is MXN20,593 Mil as of Mar. 2026. GuruFocus rates MEX:EHC with a GF Score™ of 88/100 and a GF Value™ of MXN1,344.64. The stock has 1 warning sign investors should review.

Encompass Health's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was MXN5,779 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was MXN20,593 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Encompass Health's annualized ROC % for the quarter that ended in Mar. 2026 was 15.01%. Encompass Health's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 28.78%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Encompass Health's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.35%.


Encompass Health  (MEX:EHC) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Encompass Health's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=21754.648 * ( 1 - 19.54% )/( (117820.297 + 115331.74)/ 2 )
=17503.7897808/116576.0185
=15.01 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=127655.011 - 8583.317 - ( 1300.012 - max(0, 15059.967 - 16311.364+1300.012))
=117820.297

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=131876.742 - 14552.389 - ( 1992.613 - max(0, 15811.071 - 18557.452+1992.613))
=115331.74

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Encompass Health's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=23117.92/( ( (77680.191 + max(1213.585, 0)) + (79736.993 + max(2012.45, 0)) )/ 2 )
=23117.92/( ( 78893.776 + 81749.443 )/ 2 )
=23117.92/80321.6095
=28.78 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11149.129 + 0 + 3862.223) - (8583.317 + 0 + 5214.45)
=1213.585

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12190.105 + 0 + 4374.734) - (14552.389 + 0 + 0)
=2012.45

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Encompass Health's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=20593.374/246695.913
=8.35 %

* 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 EBIT Related Terms


Encompass Health EBIT Historical Data

* Premium members only.

The historical data trend for Encompass Health's EBIT 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.

Encompass Health EBIT Chart

Encompass Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13,730.02 12,214.24 12,742.57 18,499.01 19,377.73

Encompass Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5,531.90 5,031.16 4,598.89 5,183.84 5,779.48

MEX:EHC vs ENSG, UHS, PACS: EBIT Comparison

For the Medical Care Facilities subindustry, Encompass Health's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Encompass Health's EV-to-EBIT falls into.


MEX:EHC
88GF Score
Encompass Health Corp MEX:EHC
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Encompass Health EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN20,593 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of MXN20,593 Mil mean?
Encompass Health (MEX:EHC) has a EBIT of MXN20,593 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Encompass Health.
Is Encompass Health's EBIT too high?
Encompass Health's current EBIT is MXN20,593 Mil. Overall, Encompass Health has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's EBIT compare to ENSG and UHS?
Encompass Health's EBIT of MXN20,593 Mil can be compared against companies in the Healthcare Providers & Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Healthcare Providers & Services company?
A good EBIT depends on the Healthcare Providers & Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Encompass Health. Encompass Health's current EBIT is MXN20,593 Mil. 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?
Encompass Health (MEX:EHC) has a current EBIT of MXN20,593 Mil. The stock's GF Value™ is MXN1,344.64, compared to a current price of MXN1,280.08 — trading 4.8% below its estimated fair value. The current EBIT is MXN20,593 Mil. Encompass Health's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current EBIT is MXN20,593 Mil 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 MXN1,280.08 is trading 4.8% below its estimated GF Value™ of MXN1,344.64.

Key valuation signals for MEX:EHC:

  • EBIT: MXN20,593 Mil
  • GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
  • GF Score™: 88/100 with 1 warning sign

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 Business Description

Other Exchanges EHC:USA
Address 9001 Liberty Parkway, Birmingham, AL, USA, 35242
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.
88GF Score

Get the complete analysis for MEX:EHC

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN1,280.08
Price
MXN1,344.64
GF Value