Encompass HealthMEX:EHC 88 Net Margin % is 12.26% as of Mar. 2026, which is 62% above its 10-year median of 7.56. 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 666 Healthcare Providers & Services companies, Encompass Health ranks better than 77.18% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Encompass Health's Net Income for the
three
months ended in Mar. 2026 was MXN3,507 Mil. Encompass Health's Revenue for the
three
months ended in Mar. 2026 was MXN28,611 Mil. Therefore, Encompass Health's net margin for the quarter that ended in Mar. 2026 was 12.26%.
The historical rank and industry rank for Encompass Health's Net Margin % or its related term are showing as below:
MEX:EHC'
s Net Margin % Range Over the Past 10 Years
Min: 6.23 Med: 7.56 Max: 10.27
Current: 10.04
MEX:EHC's Net Margin % is ranked better than 77.18% of 666
companies
in the Healthcare Providers & Services industry
Industry Median: 2.915
vs MEX:EHC: 10.04
Encompass Health (MEX:EHC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Encompass Health Net Margin % Related Terms
Encompass Health Net Margin % Historical Data
* Premium members only.
The historical data trend for Encompass Health's Net 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: Net Margin % Comparison
For the Medical Care Facilities subindustry, Encompass Health's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Net Margin % distribution charts can be found below:
* The bar in red indicates where Encompass Health's Net 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 Net Margin % of 12.26% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Encompass Health and its competitors. This is 62% above median its historical median of 7.56. Over the past decade, Encompass Health's Net Margin % has ranged from 6.23 to 10.27. According to the industry distribution chart, Encompass Health ranks #152 out of 666 companies in the Healthcare Providers & Services industry, placing it in the top 22.8%.
Is Encompass Health's Net Margin % too high?
Encompass Health's current Net Margin % of 12.26% is 62% above median its 10-year median of 7.56. Over the past 10 years, this metric has ranged from a low of 6.23 to a high of 10.27. The Healthcare Providers & Services industry median Net Margin % is 2.92. Encompass Health's value of 12.26% is 320.6% above this industry median. Based on the distribution chart, Encompass Health ranks #152 out of 666 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. 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 Net Margin % compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #152 out of 666 companies for Net Margin %. This places Encompass Health in the top 23% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.92. Encompass Health's value of 12.26% is 320.6% above this benchmark. Historically, Encompass Health's own Net Margin % has ranged from 6.23 to 10.27 over the past decade. While the company's 10-year median is 7.56 vs. the industry median of 2.92, 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 Net Margin % for a Healthcare Providers & Services company?
The median Net Margin % among Healthcare Providers & Services companies is 2.92, based on 666 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current Net Margin % of 12.26% is 320.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Net Margin % is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Net Margin % is 12.26%, which is 62% above median its own 10-year median of 7.56. 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 Net Margin % of 12.26%. 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 Net Margin % is 12.26%, which is 62% above median its 10-year median of 7.56 and 320.6% above the Healthcare Providers & Services industry median of 2.92. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Net Margin % is 12.26% 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:
Net Margin %: 12.26% (62% above median its 10-year median of 7.56)
GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
Industry Position: 320.6% above the Healthcare Providers & Services median (#152 of 666)
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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