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Encompass HealthMEX:EHC 79 Beneish M-Score is -2.78 as of Aug. 17, 2026. GuruFocus rates MEX:EHC with a GF Score™ of 79/100 and a GF Value™ of MXN1,437.19 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 625 Healthcare Providers & Services companies, Encompass Health ranks better than 67.2% on this metric.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Encompass Health's Beneish M-Score or its related term are showing as below:
MEX:EHC'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.78 Max: -2.55
Current: -2.78
During the past 13 years, the highest Beneish M-Score of Encompass Health was -2.55. The lowest was -3.20. And the median was -2.78.
The historical data trend for Encompass Health's Beneish M-Score 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: Beneish M-Score Comparison
For the Medical Care Facilities subindustry, Encompass Health's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Encompass Health's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Encompass Health for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.056
+
0.528 * 0.998
+
0.404 * 0.9322
+
0.892 * 0.9847
+
0.115 * 1.051
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9776
+
4.679 * -0.086743
-
0.327 * 0.9815
=
-2.86
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(6295.207 / (6295.207 + 75990.885))
/
(6218.899 / (6218.899 + 79216.715))
=
0.076504
/
0.07279
=
1.051
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(11143.935 - 656.782
-
21774.706)
/
130125.917
=
-0.086743
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Encompass Health has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.
Encompass Health (MEX:EHC) has a Beneish M-Score of -2.78 as of Aug. 17, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Encompass Health and its competitors. According to the industry distribution chart, Encompass Health ranks #205 out of 625 companies in the Healthcare Providers & Services industry, placing it in the top 32.8%.
Is Encompass Health's Beneish M-Score too high?
Encompass Health's current Beneish M-Score is -2.78. Based on the distribution chart, Encompass Health ranks #205 out of 625 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Encompass Health has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's Beneish M-Score compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #205 out of 625 companies for Beneish M-Score. This puts Encompass Health in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Healthcare Providers & Services company?
A good Beneish M-Score depends on the Healthcare Providers & Services industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Encompass Health and its competitors. Encompass Health's current Beneish M-Score is -2.78. 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 MXN1,437.19, compared to a current price of MXN1,920.00 — trading 33.6% above its estimated fair value. The current Beneish M-Score is -2.78. Encompass Health's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Beneish M-Score is -2.78 as of Aug. 17, 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 overvalued.
The current stock price of MXN1,920.00 is trading 33.6% above its estimated GF Value™ of MXN1,437.19.
GuruFocus considers Encompass Health to be Significantly Overvalued.
Key valuation signals for MEX:EHC:
Beneish M-Score: -2.78
GF Value™: MXN1,437.19 vs. price of MXN1,920.00 (33.6% above fair value)
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.
79GF Score
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