Encompass HealthMEX:EHC 88 Pretax Margin % is 18.20% as of Mar. 2026, which is 44% above its 10-year median of 12.62. 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 83.93% on this metric.
The historical rank and industry rank for Encompass Health's Pretax Margin % or its related term are showing as below:
MEX:EHC'
s Pretax Margin % Range Over the Past 10 Years
Min: 9.9 Med: 12.62 Max: 16.54
Current: 16.54
MEX:EHC's Pretax Margin % is ranked better than 83.93% of 666
companies
in the Healthcare Providers & Services industry
Industry Median: 4.01
vs MEX:EHC: 16.54
Encompass Health (MEX:EHC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Encompass Health Pretax Margin % Related Terms
Encompass Health Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Encompass Health's Pretax 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: Pretax Margin % Comparison
For the Medical Care Facilities subindustry, Encompass Health's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Encompass Health's Pretax 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 Pretax Margin % of 18.20% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Encompass Health and its competitors. This is 44% above median its historical median of 12.62. Over the past decade, Encompass Health's Pretax Margin % has ranged from 9.90 to 16.54. According to the industry distribution chart, Encompass Health ranks #107 out of 666 companies in the Healthcare Providers & Services industry, placing it in the top 16.1%.
Is Encompass Health's Pretax Margin % too high?
Encompass Health's current Pretax Margin % of 18.20% is 44% above median its 10-year median of 12.62. Over the past 10 years, this metric has ranged from a low of 9.90 to a high of 16.54. The Healthcare Providers & Services industry median Pretax Margin % is 4.01. Encompass Health's value of 18.20% is 353.9% above this industry median. Based on the distribution chart, Encompass Health ranks #107 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 Pretax Margin % compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #107 out of 666 companies for Pretax Margin %. This places Encompass Health in the top 16% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 4.01. Encompass Health's value of 18.20% is 353.9% above this benchmark. Historically, Encompass Health's own Pretax Margin % has ranged from 9.90 to 16.54 over the past decade. While the company's 10-year median is 12.62 vs. the industry median of 4.01, 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 Pretax Margin % for a Healthcare Providers & Services company?
The median Pretax Margin % among Healthcare Providers & Services companies is 4.01, based on 666 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current Pretax Margin % of 18.20% is 353.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median Pretax Margin % is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current Pretax Margin % is 18.20%, which is 44% above median its own 10-year median of 12.62. 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 Pretax Margin % of 18.20%. 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 Pretax Margin % is 18.20%, which is 44% above median its 10-year median of 12.62 and 353.9% above the Healthcare Providers & Services industry median of 4.01. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Pretax Margin % is 18.20% 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:
Pretax Margin %: 18.20% (44% above median its 10-year median of 12.62)
GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
Industry Position: 353.9% above the Healthcare Providers & Services median (#107 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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