Encompass Health (MEX:EHC) Operating Income: MXN19,889 Mil (TTM As of Mar. 2026)

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MEX:EHC Encompass Health Corp MEX:EHC
76 GF Score
Price MXN1,930.00
GF Value MXN1,970.57
Valuation Fairly Valued
! 1 Warning Sign
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What is Encompass Health Operating Income?

Encompass Health MEX:EHC 76 Operating Income is MXN19,889 Mil as of Mar. 2026. GuruFocus rates MEX:EHC with a GF Score™ of 76/100 and a GF Value™ of MXN1,970.57 (Fairly Valued). The stock has 1 warning sign investors should review.

Encompass Health's Operating Income for the three months ended in Mar. 2026 was MXN5,439 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN19,889 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Encompass Health's Operating Income for the three months ended in Mar. 2026 was MXN5,439 Mil. Encompass Health's Revenue for the three months ended in Mar. 2026 was MXN28,611 Mil. Therefore, Encompass Health's Operating Margin % for the quarter that ended in Mar. 2026 was 19.01%.

Good Sign:

Encompass Health Corp operating margin is expanding. Margin expansion is usually a good sign.

Encompass Health's 5-Year average Growth Rate for Operating Margin % was 2.50% per year.

Operating Income or EBIT 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%.

Encompass Health  (MEX:EHC) Operating Income Explanation

1. Operating Income or EBIT 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. Operating Income is also linked to Operating Margin %:

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

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=5438.662/28610.682
=19.01 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Encompass Health Operating Income Related Terms

Encompass Health Operating Income Historical Data

* Premium members only.

The historical data trend for Encompass Health's Operating Income 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 Operating Income Chart

Encompass Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13,526.93 12,286.38 12,421.76 18,029.75 18,961.80

Encompass Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income 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 5,462.34 4,878.65 4,468.65 5,102.82 5,438.66
MEX:EHC
76GF Score
Encompass Health Corp MEX:EHC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Encompass Health Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income 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 MXN19,889 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 Operating Income →
What does a Operating Income of MXN19,889 Mil mean?
Encompass Health (MEX:EHC) has a Operating Income of MXN19,889 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Encompass Health and its competitors.
Is Encompass Health's Operating Income too high?
Encompass Health's current Operating Income is MXN19,889 Mil. Overall, Encompass Health has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's Operating Income compare to ENSG and UHS?
Encompass Health's Operating Income of MXN19,889 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 Operating Income for a Healthcare Providers & Services company?
A good Operating Income depends on the Healthcare Providers & Services industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Encompass Health and its competitors. Encompass Health's current Operating Income is MXN19,889 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?
Based on GuruFocus' analysis, Encompass Health (MEX:EHC) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,970.57, compared to a current price of MXN1,930.00 — trading 2.1% below its estimated fair value. The current Operating Income is MXN19,889 Mil. Encompass Health's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Operating Income is MXN19,889 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 MXN1,930.00 is trading 2.1% below its estimated GF Value™ of MXN1,970.57. GuruFocus considers Encompass Health to be Fairly Valued.

Key valuation signals for MEX:EHC:

  • Operating Income: MXN19,889 Mil
  • GF Value™: MXN1,970.57 vs. price of MXN1,930.00 (2.1% below fair value)
  • GF Score™: 76/100 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.
76GF Score

Get the complete analysis for MEX:EHC

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

MXN1,930.00
Price
MXN1,970.57
GF Value