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Encompass Health has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Encompass Health's Interest Coverage for the quarter that ended in Jun. 2026 was 8.79.
Encompass Health's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.44.
As of today, Encompass Health's Altman Z-Score is 3.46.
Encompass Health (MEX:EHC) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Encompass Health has the Financial Strength Rank of 5.
Encompass Health Financial Strength Related Terms
MEX:EHC vs DVA, UHS, ENSG: Financial Strength Comparison
For the Medical Care Facilities subindustry, Encompass Health's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Financial Strength distribution charts can be found below:
* The bar in red indicates where Encompass Health's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Encompass Health has a Z-score of 3.46, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.46 is strong.
* 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 Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Encompass Health and its competitors. This is near median its historical median of 5.00. Over the past decade, Encompass Health's Financial Strength has ranged from 3.00 to 6.00.
Is Encompass Health's Financial Strength too high?
Encompass Health's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. 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 Financial Strength compare to DVA and UHS?
Encompass Health's Financial Strength of 5 can be compared against companies in the Healthcare Providers & Services industry. Historically, Encompass Health's own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Healthcare Providers & Services company?
A good Financial Strength depends on the Healthcare Providers & Services industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Encompass Health and its competitors. Encompass Health's current Financial Strength is 5, which is near median its own 10-year median of 5.00. 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 MXN1,431.41, compared to a current price of MXN1,920.00 — trading 34.1% above its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current Financial Strength is 5 as of Jun. 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 34.1% above its estimated GF Value™ of MXN1,431.41.
GuruFocus considers Encompass Health to be Significantly Overvalued.
Key valuation signals for MEX:EHC:
Financial Strength: 5 (near median its 10-year median of 5.00)
GF Value™: MXN1,431.41 vs. price of MXN1,920.00 (34.1% 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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