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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
EHC
Primary Facts
Medical Care Facilities
Name:
-
Sector:
164.60M
Industry:
48.4
CEO:
Mr. Mark Tarr
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
2.566283074
10.01046788
Encompass Health Corporation (XNYS:EHC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
ENCOMPASS HEALTH CORPORATION (XNYS:EHC)
One Month Price Target:
Six Month Price Target :
$48.68
Likely Price in One Year's Time:
Ticker:
$50.09
Likely Trading Range Today Under (Normal Volatility)
$48.58
Price Upper limit ($) :
$51.78
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P447
This week:
$46.28
This month :
$43.66
Other Primary facts
Market Cap:
99.78M
Market Cap Classification:
4.82B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-11.%
$38.92
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$53.77
11.%
$43.03
$58.24
Medium risk (<10%) entry points
Buy Call
Sell Call
$51.35
Buy Put:
Sell Put:
$38.56
$45.45
$52.31
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Medical Care Facilities
Sharpe Ratio:
EHC, is amongst the top 40% lowest yielding stocks in terms of daily returns
Comparison:
2.22%
-1.16614038
Sharpe ratio is -116.61% lower than the industry
Average Returns/Yield of
Medical Care Facilities
Daily returns:
1
Weekly returns:
0.00%
Monthly returns:
0.00%
Yearly returns:
0.23%
Comparison of returns:
-0.989851984
Classification:
Average annual returns/yield (last 3 years) is -98.99% below industry average
Results of T-Test of Returns:
EHC is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.96
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -116.21% lower than the market/S&P 500 average
Weekly Volatility:
2.13%
Monthly Volatility:
4.77%
Yearly Volatility:
9.53%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
41.56%
-69.72%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -69.72% below long-term volatility
Weekly VaR:
-4.38%
Monthly VaR:
-9.79%
How Much Can the price of
Medical Care Facilities
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Low (<25%)
Worst case (decline):
$40.02
This translates to price declining to:
-17%
This translates to price declining to:
-67.82%
Severe Crash Probability
-19.58%
What is Value at Risk (VaR)?
Risk Fundamentals
18.37%
EHC is a 38.18% riskier investment compared to the market/S&P 500 & is 18.37% riskier than Nasdaq (IXIC)
EHC is a 38.18% riskier investment compared to the market/S&P 500
Beta Examination of
Medical Care Facilities
1.038
Expected beta in 1 year's time:
0.68
Expected beta in 3 year's time:
0.773
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--1.04
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -2.71% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.429
-0.161
Average Industry Beta:
Beta is -16.06% lower than peers
-0.027113138
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -4.71% below industry mean WACC
-53.30%
Alpha provided | Alpha Analysis
Alpha provided:
1.093
-1.799
-6.383
Analysis of Cost of Capital of
Medical Care Facilities
Equity cost of capital:
Alpha is -638% below the market average
-0.019
Unlevered (without debt) cost of capital:
Equity cost of capital is -1.89% below industry mean WACC
Before-tax cost of debt:
4.24%
After-tax cost of debt:
4.56%
Overall debt rating:
3.60%
Weighted average cost of capital (WACC):
4.56%
-4.71%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $10.91
Revenue growth rate per share of (3Y):
Price to sales ratio is -56.35% below the industry mean
-59.39%
EPS:
One Hundred Ninety-Five Million One Hundred Fourteen Thousand Eight Hundred Sixty-Five Dollars
Expected Annual growth rate of EPS (3Y):
-
-70.64%
Free cash flow (FCF) per share:
Price to book ratio is -67.85% below the industry mean
-
-1.948378125
Debt per share
Debt repayment rate in previous year: 8.75%
EBITDA per share
Each employee generates -38% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Medical Care Facilities
P/E Ratio:
Sustainable growth rate is -53.30% below industry average
P/E Ratio of Competitors/Peers:
14.8
-0.789592815
275.1159715
-0.82407419
$2.01
Share value as per dividend discount (DDM) model: $22.98
P/S (Price to Sales ratio):
$52.36
-0.563511309
P/B (Price to book value ratio):
Price to sales ratio is -56.35% below the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is -59.39% below industry average
-74.30%
Dividend Analysis
Net income growth rate is -74.30% lower than the industry average net income growth rate
Dividend payout rate: 28.64%
$0.28
Previous Dividend: $0.28
Previous adjusted dividend: $0.28
Previous Dividend: $1.12
-
-
Average dividend payment (long-term): $0.28
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 18/07/2022
Expected next dividend record date: 30/06/2022
Expected next dividend declaration date: 26/05/2022
Previous dividend payment date: 18/04/2022
Previous dividend record date: 04/01/2022
Dividend History:
Previous dividend declaration date: 25/02/2022
2021-12-31--$0.28
2021-06-30--$0.28
2022-03-31--$0.28
2021-09-30--$0.28
2021-03-31--$0.28
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
182.25%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 4.5 years
Debt to assets ratio:
50.74%
Net debt to assets ratio:
180.87%
-6.70%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -6.70% below industry average
-0.70
Looking forward:
Debt growth rate:
2.0x
-100.14%
8.75%
Analysis of Key Statistics
Correlation of price movement with the market:
21.17655656
Statistical significance of correlation:
-0.36%
Average Correlation of the industry with the market:
0.629
45.65%
R Squared (percentage of price movement explained by movement of the market):
0.629
Correlation of price movement with Nasdaq (^IXIC):
0.396
Covariance of price movement with the market:
0.007
Kurtosis
0.009
5.218
Skewness of returns:
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.130
Fundamental Analysis & Dupont Analysis of
Medical Care Facilities
Gross Profit Margin Ratio:
5.01B
Operating Profit Margin Ratio:
Net profit margin is -205.15% lower than the industry
-309.73%
Net Profit Margin Ratio:
5.01B
Effective Tax Rate:
8.36%
-0.010725865
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is 30.86% higher than the industry
15.10%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -309.73% lower than the industry
30.86%
Financial Leverage:
Interest coverage ratio is -70.43% less than industry average
Current Ratio:
Return on equity (ROE) is 15.10% higher than the industry
-0.331569109
Cash Conversion Cycle (days):
$34.65
-8.080229213
Current ratio is -33.16% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -194.84% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -808.02% below industry average
-0.464813822
EBITDA generated per employee:
Each employee generates -46% less revenue than industry average revenue per employee
-0.382564641
Profit generated per employee:
$9.53
-52%
Free cash flow (FCF) generated per employee:
Each employee generates -52% less net income/profit than industry average revenue per employee
-0.144106223
Assets/Capital per employee
Each employee generates -14% less free cash flow than industry average revenue per employee
-0.144106223
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Medical Care Facilities
$78.50
INSPIRE MEDICAL SYSTEMS, INC. (XNYS:INSP)
OAK STREET HEALTH, INC. (XNYS:OSH)
ENVISTA HOLDINGS CORPORATION (XNYS:NVST)
AMN HEALTHCARE SERVICES, INC. (XNYS:AMN)
PERRIGO COMPANY PUBLIC LIMITED COMPANY (XNYS:PRGO)
CHEMED CORPORATION (XNYS:CHE)
TENET HEALTHCARE CORPORATION (XNYS:THC)
Stevanato Group Spa (XNYS:STVN)
Current Analyst Ratings
$3.91
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
5.22B
213.50M
384%
-
3.26B
3.26B
-
965.30M
4.44B
-
161.40M
260.30M
73%
136.30M
- 151500.00K
48%
136.30M
Statement of Cash Flow
Date:
Period:
412.20M
Differed Income Tax :
256.60M
Stock Based Compensation :
27.80M
Change in Working Capital :
32.80M
Accounts Receivables:
- 118000.00K
Other Working Capital:
14.90M
Other Non-Cash Items:
172.60M
Net Cash Provided by Operating Activities:
104.40M
Investments in PP&E:
715.80M
Net Acquisitions:
- 528900.00K
Purchases of Investments:
- 118600.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
12/31/2021
2021
FY
54.80M
-
54.80M
680.30M
-
186.30M
921.40M
2.84B
2.43B
417.50M
-
-
254.50M
5.94B
-
6.86B
137.60M
81.20M
-
-
530.00M
748.80M
3.46B
173.20M
3.72B
-
4.47B
1.10M
141.80M
-
Value
4.23B
1.77B
1.91B
6.38B
-
3.54B
- 9000.00K
-
- 9800.00K
- 666300.00K
- 331300.00K
-
-
- 112400.00K
203.60M
- 240100.00K
-
- 190600.00K
120.30M
310.90M
715.80M
- 551200.00K
Our Proprietary Portfolio Rating
Our Rating:
-1635.747474
Price Forecast/Expected Price in Next 5 Years of
Medical Care Facilities
2023
2024
2025
2026
2027
59.94169637
$59.94
$64.12
$68.60
$73.38