Encompass HealthMEX:EHC 76 3-Year ROIIC % is 27.47 as of Dec. 2025, which is 477% above its 10-year median of 4.76. GuruFocus rates MEX:EHC with a GF Score™ of 76/100 and a GF Value™ of MXN1,455.72 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 621 Healthcare Providers & Services companies, Encompass Health ranks better than 76.33% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Encompass Health's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 27.47%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Encompass Health's 3-Year ROIIC % or its related term are showing as below:
MEX:EHC's 3-Year ROIIC % is ranked better than 76.33% of 621
companies
in the Healthcare Providers & Services industry
Industry Median: 3.46
vs MEX:EHC: 27.47
Encompass Health (MEX:EHC) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Encompass Health 3-Year ROIIC % Related Terms
Encompass Health 3-Year ROIIC % Historical Data
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The historical data trend for Encompass Health's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Medical Care Facilities subindustry, Encompass Health's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Encompass Health's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Encompass Health (MEX:EHC) has a 3-Year ROIIC % of 27.47 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Encompass Health and its competitors. This is 477% above median its historical median of 4.76. According to the industry distribution chart, Encompass Health ranks #147 out of 621 companies in the Healthcare Providers & Services industry, placing it in the top 23.7%.
Is Encompass Health's 3-Year ROIIC % too high?
Encompass Health's current 3-Year ROIIC % of 27.47 is 477% above median its 10-year median of 4.76. The Healthcare Providers & Services industry median 3-Year ROIIC % is 3.46. Encompass Health's value of 27.47 is 693.9% above this industry median. Based on the distribution chart, Encompass Health ranks #147 out of 621 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 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Encompass Health's 3-Year ROIIC % compare to ENSG and UHS?
According to the Healthcare Providers & Services industry distribution chart, Encompass Health ranks #147 out of 621 companies for 3-Year ROIIC %. This places Encompass Health in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.46. Encompass Health's value of 27.47 is 693.9% above this benchmark. While the company's 10-year median is 4.76 vs. the industry median of 3.46, 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 3-Year ROIIC % for a Healthcare Providers & Services company?
The median 3-Year ROIIC % among Healthcare Providers & Services companies is 3.46, based on 621 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Encompass Health's current 3-Year ROIIC % of 27.47 is 693.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Encompass Health and its competitors. For the Healthcare Providers & Services industry, the median 3-Year ROIIC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Health's current 3-Year ROIIC % is 27.47, which is 477% above median its own 10-year median of 4.76. 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 MXN1,455.72, compared to a current price of MXN1,929.00 — trading 32.5% above its estimated fair value. The current 3-Year ROIIC % is 27.47, which is 477% above median its 10-year median of 4.76 and 693.9% above the Healthcare Providers & Services industry median of 3.46. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Encompass Health (MEX:EHC), the current 3-Year ROIIC % is 27.47 as of Dec. 2025. 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 MXN1,929.00 is trading 32.5% above its estimated GF Value™ of MXN1,455.72.
GuruFocus considers Encompass Health to be Significantly Overvalued.
Key valuation signals for MEX:EHC:
3-Year ROIIC %: 27.47 (477% above median its 10-year median of 4.76)
GF Value™: MXN1,455.72 vs. price of MXN1,929.00 (32.5% above fair value)
Industry Position: 693.9% above the Healthcare Providers & Services median (#147 of 621)
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.
76GF Score
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