Encompass HealthMEX:EHC 88 Interest Coverage is 9.48 as of Mar. 2026, which is 121% above its 10-year median of 4.28. 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 454 Healthcare Providers & Services companies, Encompass Health ranks better than 52.64% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Encompass Health's
Operating Income
for the
three
months ended in Mar. 2026 was MXN5,439 Mil. Encompass Health's Interest Expense for the
three
months ended in Mar. 2026 was MXN-573 Mil.
Encompass Health's interest coverage for the quarter that ended in Mar. 2026 was 9.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Encompass Health's Interest Coverage or its related term are showing as below:
MEX:EHC'
s Interest Coverage Range Over the Past 10 Years
Min: 2.89 Med: 4.28 Max: 8.83
Current: 8.83
MEX:EHC's Interest Coverage is ranked better than 52.64% of 454
companies
in the Healthcare Providers & Services industry
Industry Median: 8
vs MEX:EHC: 8.83
Encompass Health (MEX:EHC) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Encompass Health Interest Coverage Related Terms
Encompass Health Interest Coverage Historical Data
* Premium members only.
The historical data trend for Encompass Health's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:EHC vs ENSG, UHS, PACS: Interest Coverage Comparison
For the Medical Care Facilities subindustry, Encompass Health's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Encompass Health's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 9.48 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Encompass Health and its competitors. This is 121% above median its historical median of 4.28. Over the past decade, Encompass Health's Interest Coverage has ranged from 2.89 to 8.83. According to the industry distribution chart, Encompass Health ranks #215 out of 454 companies in the Healthcare Providers & Services industry, placing it in the top 47.4%.
Is Encompass Health's Interest Coverage too high?
Encompass Health's current Interest Coverage of 9.48 is 121% above median its 10-year median of 4.28. Over the past 10 years, this metric has ranged from a low of 2.89 to a high of 8.83. The Healthcare Providers & Services industry median Interest Coverage is 8.00. Encompass Health's value of 9.48 is 18.5% above this industry median. Based on the distribution chart, Encompass Health ranks #215 out of 454 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 Interest Coverage compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #215 out of 454 companies for Interest Coverage. This puts Encompass Health in the upper half of its industry. The industry median Interest Coverage is 8.00. Encompass Health's value of 9.48 is 18.5% above this benchmark. Historically, Encompass Health's own Interest Coverage has ranged from 2.89 to 8.83 over the past decade. While the company's 10-year median is 4.28 vs. the industry median of 8.00, 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 Interest Coverage for a Healthcare Providers & Services company?
The median Interest Coverage among Healthcare Providers & Services companies is 8.00, based on 454 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current Interest Coverage of 9.48 is 18.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Interest Coverage is 8.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Interest Coverage is 9.48, which is 121% above median its own 10-year median of 4.28. 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 Interest Coverage of 9.48. 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 Interest Coverage is 9.48, which is 121% above median its 10-year median of 4.28 and 18.5% above the Healthcare Providers & Services industry median of 8.00. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Interest Coverage is 9.48 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:
Interest Coverage: 9.48 (121% above median its 10-year median of 4.28)
GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
Industry Position: 18.5% above the Healthcare Providers & Services median (#215 of 454)
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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