Enhabit, Inc.
$13.80
+0.072%Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company also offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. As of March 31, 2022, it operated in 252 home health agencies and 99 hospice agencies across 34 states. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was incorporated in 2014 and is headquartered in Dallas, Texas. As of July 1, 2022, Enhabit, Inc. operates as a standalone company.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -101.8).
Valuation inputs: P/E -101.8, earnings yield N/A, momentum +0.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -0.9%, ROIC -11.0%).
Profitability stack: net margin -0.4%, ROE -0.9%, ROIC -11.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +51.7%, momentum +0.1%, net margin -0.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Enhabit, Inc. Market vs Earnings Trajectory
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Enhabit, Inc. Fair Value Envelope
Enhabit, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Enhabit, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Enhabit, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Enhabit, Inc. Street Expectations Map
Wall Street analysts project that EHAB stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 13.53, with estimates ranging from a low of 12.00 to a high of 14.00.
The consensus 1-year price target stands at 13.53, with estimates ranging from a low of 12.00 to a high of 14.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Enhabit, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.60M and sold $339K worth of EHAB shares, resulting in $2.26M of net buying activity.
3 Months
0
0.00
7.0K
95.23K
-95K
-$95K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
23.1K
185.02K
0
0.00
+185K
+$185K
9-12 Months
303.7K
2.41M
31.0K
244.06K
+2.2M
+$2.17M
Top Buyers
Solomon Ryan
Officer: Chief Financial Officer
$326K
Bolton Jeffrey
Director
$225K
Rush Gregory S
Director
$200K
Schochet Barry P.
Director
$198K
Hoeflinger Erin
Director
$198K
Top Sellers
Jacobsmeyer Barbara Ann
Director, Officer: President And Ceo
$205K
Jolley Julie Diane
Officer: Evp Of Home Health Operations
$100K
Mcquiddy Collin
Officer: Chief Accounting Officer
$19K
Marion Tanya Renee
Officer: Chief Human Resources Officer
$16K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.26M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs sellingโone of the strongest possible insider signals.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchasesโmay warrant investigation into company developments.
Insider Participation
5 insider buyers vs. 4 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
ehab Dividend History
Learning Layer
Related Guides
Build conviction on EHAB by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.