Encompass HealthMEX:EHC 88 FCF Margin % is 9.50% as of Mar. 2026, which is 35% above its 10-year median of 7.06. 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. Among 667 Healthcare Providers & Services companies, Encompass Health ranks better than 65.52% on this metric.
The historical rank and industry rank for Encompass Health's FCF Margin % or its related term are showing as below:
MEX:EHC'
s FCF Margin % Range Over the Past 10 Years
Min: 2.8 Med: 7.06 Max: 12.01
Current: 7.64
During the past 13 years, the highest FCF Margin % of Encompass Health was 12.01%. The lowest was 2.80%. And the median was 7.06%.
MEX:EHC's FCF Margin % is ranked better than 65.52% of 667
companies
in the Healthcare Providers & Services industry
Industry Median: 3.1
vs MEX:EHC: 7.64
Encompass Health FCF Margin % Related Terms
Encompass Health FCF Margin % Historical Data
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The historical data trend for Encompass Health's FCF Margin % 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: FCF Margin % Comparison
For the Medical Care Facilities subindustry, Encompass Health's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Encompass Health's FCF Margin % 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 FCF Margin % of 9.50% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Encompass Health and its competitors. This is 35% above median its historical median of 7.06. Over the past decade, Encompass Health's FCF Margin % has ranged from 2.80 to 12.01. According to the industry distribution chart, Encompass Health ranks #230 out of 667 companies in the Healthcare Providers & Services industry, placing it in the top 34.5%.
Is Encompass Health's FCF Margin % too high?
Encompass Health's current FCF Margin % of 9.50% is 35% above median its 10-year median of 7.06. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 12.01. The Healthcare Providers & Services industry median FCF Margin % is 3.10. Encompass Health's value of 9.50% is 206.5% above this industry median. Based on the distribution chart, Encompass Health ranks #230 out of 667 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. 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 FCF Margin % compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #230 out of 667 companies for FCF Margin %. This puts Encompass Health in the upper half of its industry. The industry median FCF Margin % is 3.10. Encompass Health's value of 9.50% is 206.5% above this benchmark. Historically, Encompass Health's own FCF Margin % has ranged from 2.80 to 12.01 over the past decade. While the company's 10-year median is 7.06 vs. the industry median of 3.10, 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 FCF Margin % for a Healthcare Providers & Services company?
The median FCF Margin % among Healthcare Providers & Services companies is 3.10, based on 667 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current FCF Margin % of 9.50% is 206.5% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median FCF Margin % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current FCF Margin % is 9.50%, which is 35% above median its own 10-year median of 7.06. 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 FCF Margin % of 9.50%. 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 FCF Margin % is 9.50%, which is 35% above median its 10-year median of 7.06 and 206.5% above the Healthcare Providers & Services industry median of 3.10. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current FCF Margin % is 9.50% 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:
FCF Margin %: 9.50% (35% above median its 10-year median of 7.06)
GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
Industry Position: 206.5% above the Healthcare Providers & Services median (#230 of 667)
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.
88GF Score
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