Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $414.65M
• Dividend Yield: N/A
• Average Volume (3M): 459.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -0.39%
• EPS Growth: -1408.40%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 50,690,380
• 10 Day Avg. Volume: 499,865
• 30 Day Avg. Volume: 459,103
• PEG Ratio: -0.03
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 8.27
• Enterprise Value/Market Cap: 2.46
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: -17.23
• 1Y Price Target: $8.83
• Price Target Upside: 7.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $8.00 ▼(-2.20% Downside)

Enhabit, Inc. faces significant financial challenges, with declining revenues and profitability issues being the most impactful factors. While the earnings call provided some positive insights, such as strong hospice segment growth and successful payer negotiations, these are offset by regulatory uncertainties and potential downsizing. Technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends. Valuation remains unattractive due to negative earnings and no dividend yield.

Positive Factors

Strong Hospice Segment Growth

The hospice segment's robust growth in revenue and EBITDA indicates a strong market position and effective service delivery, which can drive long-term profitability and market share expansion.

Successful Payer Contract Negotiation

The successful renegotiation of payer contracts enhances revenue per visit, supporting improved margins and potentially increasing patient referrals, which strengthens long-term revenue streams.

Debt Reduction and Improved Liquidity

Reducing debt and improving liquidity enhances financial stability, reduces interest expenses, and provides greater flexibility for strategic investments and growth initiatives.

Negative Factors

Disappointing CMS Rate Adjustments

Regulatory rate adjustments pose significant challenges, potentially reducing profitability and impacting the company's ability to sustain operations in a cost-effective manner.

Impact of Proposed 2026 Medicare Cuts

Proposed Medicare cuts threaten revenue stability and could necessitate operational changes, affecting long-term sustainability and competitive positioning in the healthcare market.

Potential Branch Closures

Branch closures indicate cost management challenges and may impact service delivery and market presence, potentially reducing growth prospects and operational efficiency.

Enhabit, Inc Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Enhabit, Inc generates revenue primarily through the reimbursement of its healthcare services. The company's key revenue streams include payments from Medicare, Medicaid, private insurance companies, and direct payments from patients. Enhabit's earnings are significantly influenced by its ability to maintain relationships with healthcare providers, government programs, and insurance companies, ensuring a steady influx of patients requiring home health and hospice care. The company's financial performance is also affected by regulatory changes and reimbursement rate adjustments that impact the healthcare industry.

Enhabit, Inc Financial Statement Overview

Summary

Enhabit, Inc. is facing financial difficulties with declining revenues and profitability issues. The balance sheet shows increasing leverage, which could pose risks if not managed properly. Cash flow challenges further exacerbate the situation, requiring strategic improvements to stabilize financial health.

Income Statement

Enhabit, Inc. has faced declining revenue over recent years, with a slight uptick in the TTM period. The company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has increased over time, indicating rising leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio is reasonable, suggesting a balanced asset structure, but the increasing debt levels pose a risk.

Cash Flow

Operating cash flow is positive but low relative to net income, indicating cash flow challenges. Free cash flow has decreased significantly, and the free cash flow to net income ratio is high, suggesting reliance on cash reserves. The company needs to improve cash generation to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.03B	1.05B	1.08B	1.11B	1.08B
Gross Profit	501.60M	504.00M	510.70M	557.50M	592.70M	540.70M
EBITDA	-59.20M	-83.60M	-16.50M	22.50M	185.20M	145.40M
Net Income	-133.20M	-156.20M	-80.50M	-40.40M	111.10M	75.00M
Balance Sheet
Total Assets	1.23B	1.23B	1.43B	1.65B	1.72B	1.62B
Cash, Cash Equivalents and Short-Term Investments	38.90M	28.40M	27.40M	22.90M	5.40M	38.50M
Total Debt	532.80M	569.50M	610.10M	625.20M	56.90M	50.50M
Total Liabilities	642.50M	672.10M	731.90M	767.30M	236.70M	227.00M
Stockholders Equity	552.40M	523.50M	669.70M	844.60M	1.47B	1.38B
Cash Flow
Free Cash Flow	49.30M	47.40M	44.90M	73.00M	117.70M	21.30M
Operating Cash Flow	52.80M	51.20M	48.40M	80.10M	123.30M	24.90M
Investing Cash Flow	18.30M	-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
Financing Cash Flow	-62.40M	-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 8.18 is above the 20-day moving average (MA) of 7.91, above the 50-day MA of 7.44, and below the 200-day MA of 8.35, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.37 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	76 Outperform	9.48B	29.66	16.00%	0.15%	17.71%	41.83%
PNTG	72 Outperform	833.64M	30.84	8.56%	―	30.58%	24.86%
HCA	66 Neutral	94.14B	16.90	-135.89%	0.70%	6.37%	11.25%
INNV	57 Neutral	628.00M	-20.68	-12.90%	―	11.76%	-42.52%
EHAB	52 Neutral	$414.65M	―	-21.72%	―	-0.39%	-1408.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Enhabit, Inc Corporate Events

Enhabit, Inc Announces CEO Transition Plan

On August 6, 2025, Enhabit, Inc. announced that its President and CEO, Barbara A. Jacobsmeyer, will step down by July 31, 2026, or earlier upon the appointment of a successor. The company has initiated a leadership succession plan, retaining Russell Reynolds Associates to assist in the search for a new CEO. Jacobsmeyer will transition to a non-executive advisor role if a successor is appointed before her departure. Additionally, Enhabit has granted retention awards to several key officers to ensure leadership stability during this transition period.

The most recent analyst rating on (EHAB) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.