Encompass Health (MEX:EHC) ROCE %: 20.22% (As of Mar. 2026)


MEX:EHC Encompass Health Corp MEX:EHC
88 GF Score
Price MXN1,280.08
GF Value MXN1,344.64
! 1 Warning Sign
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What is Encompass Health ROCE %?

Encompass Health MEX:EHC 88 ROCE % is 20.22% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Encompass Health's annualized ROCE % for the quarter that ended in Mar. 2026 was 20.22%.

Encompass Health  (MEX:EHC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Encompass Health ROCE % Related Terms

Encompass Health ROCE % Historical Data

* Premium members only.

The historical data trend for Encompass Health's ROCE % 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 ROCE % Chart

Encompass Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.47 10.90 13.34 17.52 16.75

Encompass Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 18.66 17.51 16.47 18.47 20.22
MEX:EHC
88GF Score
Encompass Health Corp MEX:EHC
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Encompass Health ROCE % Calculation

Encompass Health's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=19377.734/( ( (136285.743 - 17539.644) + (127655.011 - 15059.967) )/ 2 )
=19377.734/( (118746.099+112595.044)/ 2 )
=19377.734/115670.5715
=16.75 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=23117.92/( ( (127655.011 - 15059.967) + (131876.742 - 15811.071) )/ 2 )
=23117.92/( ( 112595.044 + 116065.671 )/ 2 )
=23117.92/114330.3575
=20.22 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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 ROCE % →
What does a ROCE % of 20.22% mean?
Encompass Health (MEX:EHC) has a ROCE % of 20.22% as of Mar. 2026.
Is Encompass Health's ROCE % too high?
Encompass Health's current ROCE % is 20.22%. The Healthcare Providers & Services industry median ROCE % is 6.41. Encompass Health's value of 20.22% is 215.4% above this industry median. 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 ROCE % compare to ENSG and UHS?
Encompass Health's ROCE % of 20.22% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROCE % is 6.41. Encompass Health's value of 20.22% is 215.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Healthcare Providers & Services company?
The median ROCE % among Healthcare Providers & Services companies is 6.41, based on 646 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current ROCE % of 20.22% is 215.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Healthcare Providers & Services industry, the median ROCE % is 6.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current ROCE % is 20.22%. 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 ROCE % of 20.22%. 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 ROCE % is 20.22% and 215.4% above the Healthcare Providers & Services industry median of 6.41. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current ROCE % is 20.22% 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:

  • ROCE %: 20.22%
  • GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
  • GF Score™: 88/100 with 1 warning sign
  • Industry Position: 215.4% above the Healthcare Providers & Services median

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.
88GF Score

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

MXN1,280.08
Price
MXN1,344.64
GF Value