Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $525.11M
• Dividend Yield: N/A
• Average Volume (3M): 373.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -1.08%
• EPS Growth: -65.84%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 50,637,417
• 10 Day Avg. Volume: 312,025
• 30 Day Avg. Volume: 373,203
• PEG Ratio: -0.33
• Price to Book (P/B): 33.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.45
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: -4.44
• 1Y Price Target: $9.50
• Price Target Upside: -8.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: $10.50 ▲(0.67%Upside)

Enhabit, Inc. presents a challenging financial landscape with negative profit margins and declining revenue, which are significant concerns. While there are positive signals from the earnings call in terms of admission and revenue growth alongside cost efficiency improvements, the technical indicators and valuation metrics highlight ongoing struggles. The stock score reflects the need for strategic enhancements and cautious optimism for future performance improvement.

Positive Factors

Financial Performance

EPS of $0.10 came in above consensus.

Growth and Performance

Hospice continued to exceed expectations with significant growth, attributed to increased referrals and improved conversion rates.

Valuation and Investment Potential

The current valuation and expected EBITDA growth trajectory make the stock a compelling investment, with continued execution likely to result in significant stock upside.

Negative Factors

Operational Challenges

EHAB expects to close 5 HHA branches and 2 Hospice branches, which could indicate challenges in those areas.

Performance Challenges

Home Health again fell short compared to forecasts, marking the third consecutive year of declining EBITDA, indicating a challenging rate and mix environment.

Revenue Challenges

Home Health revenues of $200.6m fell short of the estimate by about 7%.

Enhabit, Inc Business Overview & Revenue Model

Company Description

Enhabit, Inc. (EHAB) is a leading provider of home health and hospice care services in the United States. The company operates within the healthcare sector, focusing on delivering personalized care to patients in the comfort of their homes. Enhabit offers a range of services, including skilled nursing, physical therapy, occupational therapy, speech therapy, and medical social work. The company's mission is to enhance the quality of life for its patients through compassionate care and innovative healthcare solutions.

How the Company Makes Money

Enhabit, Inc. generates revenue primarily through its home health and hospice services. The company's revenue model is based on providing these services to patients, who are typically covered by Medicare, Medicaid, or private insurance plans. Enhabit receives reimbursement from these payers for the healthcare services delivered to patients. Key revenue streams include skilled nursing visits, therapy sessions, and hospice care services. Additionally, strategic partnerships with healthcare providers and facilities help Enhabit expand its reach and access a broader patient base, further contributing to its earnings.

Enhabit, Inc Financial Statement Overview

Summary

Enhabit, Inc. is facing financial challenges with declining revenue, negative profit margins, and moderate leverage. The stability of cash flows provides some liquidity cushion, but the overall financial health is under pressure due to operational inefficiencies and declining equity. Strategic improvements are necessary to enhance profitability and financial stability in the long term.

Income Statement

Enhabit, Inc. has shown a concerning decline in financial performance. The company experienced negative EBIT and Net Income in the most recent year, reflecting operational challenges. The Gross Profit Margin remains relatively stable at 100%, indicating cost-effective operations, but the Net Profit Margin has turned negative due to high expenses relative to revenue. The revenue growth rate is declining, with a decrease in revenue seen in recent years.

Balance Sheet

The balance sheet shows a significant drop in Stockholders' Equity, contributing to a concerning Debt-to-Equity Ratio of 0.15, which indicates a moderate leverage level. The Return on Equity (ROE) has turned negative, reflecting net losses. However, the equity ratio remains healthy at approximately 42.7%, indicating a solid asset base relative to equity.

Cash Flow

Operating cash flow has remained stable, and free cash flow has shown some growth, providing some stability in liquidity. The Free Cash Flow to Net Income Ratio is positive due to operational cash generation, despite net losses. However, the overall growth in operating and free cash flows is modest, indicating limited cash flow improvements.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	1.03B	1.05B	1.08B	1.11B	1.08B
	Gross Profit
481.80M	504.00M	510.70M	557.50M	592.70M	540.70M
	EBIT
-112.10M	-115.10M	-47.60M	107.60M	142.90M	102.70M
	EBITDA
-62.80M	-83.60M	-16.50M	22.50M	185.20M	145.40M
	Net Income Common Stockholders
-138.60M	-156.20M	-80.50M	62.50M	111.10M	75.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.80M	28.40M	27.40M	22.90M	5.40M	38.50M
	Total Assets
1.47B	1.23B	1.43B	1.65B	1.72B	1.62B
	Total Debt
610.10M	569.50M	610.10M	625.20M	56.90M	50.50M
	Net Debt
580.30M	541.10M	582.70M	602.30M	51.50M	12.00M
	Total Liabilities
764.70M	672.10M	731.90M	767.30M	236.70M	227.00M
	Stockholders Equity
669.70M	523.50M	669.70M	844.60M	1.47B	1.38B
Cash Flow		Free Cash Flow
49.50M	47.40M	44.90M	73.00M	117.70M	21.30M
	Operating Cash Flow
51.80M	51.20M	48.40M	80.10M	123.30M	24.90M
	Investing Cash Flow
19.50M	-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
	Financing Cash Flow
-69.90M	-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHAB, the sentiment is Positive. The current price of 10.43 is above the 20-day moving average (MA) of 10.32, above the 50-day MA of 8.96, and above the 200-day MA of 8.22, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 68.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EHAB.

Enhabit, Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	79 Outperform	$8.51B	27.81	17.66%	0.17%	16.80%	39.99%
HCA	72 Outperform	$91.94B	16.98	-230.22%	0.70%	7.30%	11.60%
AMED	71 Outperform	$3.10B	35.00	7.85%	―	5.34%	―
PNTG	69 Neutral	$993.74M	37.93	11.28%	―	30.04%	43.47%
INNV	55 Neutral	$527.90M	―	-12.03%	―	12.19%	-1.59%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
EHAB	49 Neutral	$525.11M	―	-22.81%	―	-1.08%	-65.84%

Enhabit, Inc Corporate Events

Enhabit, Inc Reports Q1 2025 Financial Results

Enhabit, Inc. reported its first quarter 2025 financial results, highlighting a 3.7% sequential growth in home health census and a 12.3% year-over-year increase in hospice census. The company achieved a net income of $17.8 million and an adjusted EBITDA of $26.6 million, benefiting from improved profitability and a reduced leverage ratio, which allows for more favorable debt pricing and operational flexibility.

Enhabit, Inc. Sells Medalogix Stake for $21 Million

Enhabit, Inc. sold its investment interest in Medalogix, a healthcare predictive data and analytics company, for approximately $21 million following Medalogix’s merger with Forcura in a private equity-backed transaction on March 19, 2025. The proceeds from this sale are expected to be used by Enhabit, Inc. to reduce debt under its credit agreement, potentially impacting its financial stability and operations.

Enhabit, Inc. Reports Q4 2024 Financial Results

Enhabit, Inc. reported its fourth-quarter results for 2024, highlighting a strategic focus on long-term growth in its home health and hospice segments. The company achieved a net service revenue of $258.2 million, despite a net loss of $46.0 million. Key achievements included a 10.7% increase in non-Medicare home health admissions and a 13.1% rise in hospice net service revenue. The company also reduced its bank debt by $10 million in Q4, totaling a $40 million reduction for 2024, and opened three new hospice locations in the same quarter.