Encompass HealthMEX:EHC 88 ROE % is 31.39% as of Mar. 2026, which is 29% above its 10-year median of 24.31. 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 626 Healthcare Providers & Services companies, Encompass Health ranks better than 89.62% on this metric.
The historical rank and industry rank for Encompass Health's ROE % or its related term are showing as below:
MEX:EHC'
s ROE % Range Over the Past 10 Years
Min: 16.82 Med: 24.31 Max: 36.75
Current: 25.87
During the past 13 years, Encompass Health's highest ROE % was 36.75%. The lowest was 16.82%. And the median was 24.31%.
MEX:EHC's ROE % is ranked better than 89.62% of 626
companies
in the Healthcare Providers & Services industry
Industry Median: 5.805
vs MEX:EHC: 25.87
Encompass Health (MEX:EHC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Encompass Health ROE % Related Terms
Encompass Health ROE % Historical Data
* Premium members only.
The historical data trend for Encompass Health's ROE % 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.
For the Medical Care Facilities subindustry, Encompass Health's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's ROE % distribution charts can be found below:
* The bar in red indicates where Encompass Health's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Encompass Health (MEX:EHC) has a ROE % of 31.39% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Encompass Health and its competitors. This is 29% above median its historical median of 24.31. Over the past decade, Encompass Health's ROE % has ranged from 16.82 to 36.75. According to the industry distribution chart, Encompass Health ranks #65 out of 626 companies in the Healthcare Providers & Services industry, placing it in the top 10.4%.
Is Encompass Health's ROE % too high?
Encompass Health's current ROE % of 31.39% is 29% above median its 10-year median of 24.31. Over the past 10 years, this metric has ranged from a low of 16.82 to a high of 36.75. The Healthcare Providers & Services industry median ROE % is 5.81. Encompass Health's value of 31.39% is 440.7% above this industry median. Based on the distribution chart, Encompass Health ranks #65 out of 626 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 ROE % compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #65 out of 626 companies for ROE %. This places Encompass Health in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 5.81. Encompass Health's value of 31.39% is 440.7% above this benchmark. Historically, Encompass Health's own ROE % has ranged from 16.82 to 36.75 over the past decade. While the company's 10-year median is 24.31 vs. the industry median of 5.81, 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 ROE % for a Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 5.81, based on 626 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current ROE % of 31.39% is 440.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current ROE % is 31.39%, which is 29% above median its own 10-year median of 24.31. 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 ROE % of 31.39%. 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 ROE % is 31.39%, which is 29% above median its 10-year median of 24.31 and 440.7% above the Healthcare Providers & Services industry median of 5.81. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current ROE % is 31.39% 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:
ROE %: 31.39% (29% above median its 10-year median of 24.31)
GF Value™: MXN1,344.64 vs. price of MXN1,280.08 (4.8% below fair value)
Industry Position: 440.7% above the Healthcare Providers & Services median (#65 of 626)
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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