Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Encompass Health ( (EHC) ) has provided an update.
On March 9, 2026, Encompass Health entered into a new $1 billion revolving credit agreement with Truist Bank and other lenders, replacing and fully repaying its prior 2022 facility led by Barclays. The new 2026 Credit Agreement extends the maturity to March 9, 2031, lowers the undrawn commitment fee, relaxes certain covenants on investments, debt, liens and restricted payments, removes a 0.10% SOFR interest adjustment, and increases the swingline sublimit to $40 million.
The facility includes a $260 million letter of credit subfacility, an accordion feature that allows substantial incremental term loans or increased revolver capacity subject to leverage tests, and covenants requiring minimum interest coverage of 3.00x and a maximum leverage ratio of 4.50x outside significant acquisitions. As of March 9, 2026, the company had drawn $250 million on the revolver and $53.6 million on the letter of credit subfacility to retire the old credit agreement, and concurrently replaced its Barclays collateral and guarantee arrangements with a new collateral and guarantee agreement under Truist on similar terms, reinforcing its secured financing structure and balance-sheet flexibility.
The most recent analyst rating on (EHC) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Encompass Health stock, see the EHC Stock Forecast page.
Spark’s Take on EHC Stock
According to Spark, TipRanks’ AI Analyst, EHC is a Outperform.
The score is driven primarily by strong earnings-call guidance and operational momentum alongside a meaningfully improved balance sheet, partially offset by the provided financial-statement cash flow weakness and mixed technical signals. Valuation appears reasonable but the low dividend yield limits support.
To see Spark’s full report on EHC stock, click here.
More about Encompass Health
Encompass Health Corporation operates in the healthcare sector, providing post-acute services primarily through inpatient rehabilitation hospitals and related facilities. The company focuses on delivering specialized rehabilitative care across the U.S., leveraging secured credit facilities to support its capital needs and operational growth strategy.
Average Trading Volume: 1,246,400
Technical Sentiment Signal: Buy
Current Market Cap: $10.8B
See more data about EHC stock on TipRanks’ Stock Analysis page.