Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $441.29M
• Dividend Yield: N/A
• Average Volume (3M): 446.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 1.02%
• EPS Growth: 89.58%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.17
• Shares Outstanding: 50,607,075
• 10 Day Avg. Volume: 614,393
• 30 Day Avg. Volume: 446,709
• 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: 2.03
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 15.16
• 1Y Price Target: $9.00
• Price Target Upside: 11.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $8.00 ▼(-1.11% Downside)

Enhabit, Inc's overall stock score reflects a mixed financial performance with profitability challenges and increased leverage. However, strong operational performance and improved financial guidance from the earnings call provide a positive outlook. Technical indicators suggest caution, and the negative P/E ratio highlights valuation concerns.

Positive Factors

Successful Payer Renegotiations

The successful renegotiation of payer contracts enhances revenue per visit, supporting long-term revenue growth and financial stability.

Record Hospice Performance

Strong hospice performance indicates robust demand and operational efficiency, contributing to overall profitability and market position.

Improved Financial Health

Reduced leverage and interest expenses enhance financial flexibility, allowing for reinvestment and growth opportunities.

Negative Factors

Home Health Revenue Stagnation

Stagnant home health revenue growth may hinder overall financial performance, highlighting challenges in pricing and service mix.

Impact of Payer Disruptions

Disruptions from payer renegotiations can affect patient volumes and revenue, posing risks to operational stability.

Continued CMS Pricing Challenges

CMS pricing challenges could impact reimbursement rates, affecting revenue and profitability in the long term.

Enhabit, Inc Business Overview & Revenue Model

Company Description

Enhabit, Inc. (EHAB) is a leading provider of home health and hospice services in the United States. The company specializes in delivering high-quality, patient-centered care to individuals in the comfort of their homes, focusing on rehabilitation, skilled nursing, and hospice support. Enhabit operates across multiple regions, leveraging advanced technology and a dedicated workforce to enhance patient outcomes and improve the overall experience for patients and their families.

How the Company Makes Money

Enhabit generates revenue primarily through reimbursements from Medicare, Medicaid, and private insurance for the home health and hospice services it provides. The company’s revenue model is based on a fee-for-service structure, where it is compensated for each visit and service rendered to patients. Additionally, Enhabit may benefit from value-based care initiatives that incentivize improved patient outcomes. Key revenue streams include skilled nursing services, physical and occupational therapy, and hospice care, while significant partnerships with healthcare providers and payers help expand its service offerings and optimize reimbursement rates.

Enhabit, Inc Financial Statement Overview

Summary

Enhabit, Inc is facing profitability challenges with declining revenue growth and negative profit margins. The balance sheet shows increased leverage, which could pose risks if not managed properly. However, the company has demonstrated improvements in cash flow generation, which is a positive sign. Overall, the financial health of the company is mixed, with significant areas needing improvement.

Income Statement

Enhabit, Inc has shown a declining trend in revenue growth, with a significant drop in net profit margins over the years. The TTM data reflects a negative net profit margin of -12.83%, indicating profitability challenges. While there is a slight improvement in EBIT and EBITDA margins compared to the previous year, they remain negative, highlighting ongoing operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased over time, reaching 0.96 in the TTM period, which suggests rising leverage. Return on equity is negative, indicating that the company is not generating positive returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Enhabit, Inc has shown positive growth in free cash flow in the TTM period, with a growth rate of 17.24%. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests that cash flow is not fully covering the net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.03B	1.05B	1.07B	1.11B	1.08B
Gross Profit	507.50M	504.00M	510.70M	545.50M	592.70M	540.70M
EBITDA	59.20M	-83.60M	-16.50M	22.50M	185.20M	145.40M
Net Income	-11.90M	-156.20M	-80.50M	-40.40M	111.10M	75.00M
Balance Sheet
Total Assets	1.23B	1.23B	1.43B	1.53B	1.72B	1.62B
Cash, Cash Equivalents and Short-Term Investments	56.90M	28.40M	27.40M	22.90M	5.40M	38.50M
Total Debt	516.50M	569.50M	610.10M	625.20M	56.90M	50.50M
Total Liabilities	631.00M	672.10M	731.90M	751.50M	236.70M	227.00M
Stockholders Equity	566.80M	523.50M	669.70M	741.70M	1.47B	1.38B
Cash Flow
Free Cash Flow	57.80M	47.40M	44.90M	73.00M	119.00M	21.70M
Operating Cash Flow	62.20M	51.20M	48.40M	80.10M	123.30M	24.90M
Investing Cash Flow	17.30M	-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
Financing Cash Flow	-68.00M	-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.09 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 8.17, and below the 200-day MA of 8.37, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.23 is Neutral, neither overbought nor oversold. The STOCH value of 87.01 is Negative, 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
PNTG	76 Outperform	$927.11M	35.43	10.87%	―	29.89%	10.33%
ADUS	74 Outperform	$2.23B	25.79	8.58%	―	18.77%	6.88%
EHC	62 Neutral	$11.38B	21.38	24.94%	0.55%	11.13%	27.53%
EHAB	54 Neutral	$441.29M	―	-2.10%	―	1.02%	89.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMN	50 Neutral	$655.34M	―	-35.90%	―	-11.42%	-617.31%
CCRN	46 Neutral	$394.76M	-46.54	-3.76%	―	-22.14%	-787.87%

Enhabit, Inc Corporate Events

Enhabit Inc. Reports Strong Q3 Earnings Amid Challenges

Enhabit Inc. recently held its third-quarter earnings call, revealing a strong financial and operational performance. The company showcased significant growth in admissions and hospice profitability, alongside successful renegotiations of payer contracts. Despite these achievements, challenges persist in the stagnation of Home Health revenue and potential impacts from CMS pricing changes.

Enhabit, Inc. Reports Strong Q3 2025 Financial Results

Enhabit, Inc. is a prominent provider of home health and hospice care services, operating across 34 states in the United States with a focus on delivering quality patient care at home through advanced technology and compassionate teams.

Enhabit, Inc Reports Strong Q3 2025 Financial Results

Enhabit, Inc. reported its third-quarter 2025 financial results, highlighting a year-over-year increase in revenue, census, and Adjusted EBITDA, which enabled a reduction in bank debt and strengthening of its balance sheet. The company achieved a net service revenue of $263.6 million, with significant growth in hospice services and a strategic focus on reducing costs and improving operational efficiency. The results reflect Enhabit’s ability to stabilize its Medicare average daily census and expand its non-Medicare admissions, contributing to its improved financial performance and industry positioning.

The most recent analyst rating on (EHAB) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit Advocates Against Proposed Medicare Cuts

On September 30, 2025, Enhabit, Inc.’s executives participated in a fireside chat at the Jefferies 2025 Healthcare Services Conference, discussing their strategic plans and industry positioning. The company is actively advocating against proposed Medicare cuts to home health services, highlighting the potential negative impact on patient outcomes and increased costs to Medicare. Enhabit is also engaging in legislative efforts and grassroots campaigns to oppose these cuts, demonstrating their commitment to maintaining access to home health services.

The most recent analyst rating on (EHAB) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit, Inc. Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for Enhabit, Inc. revealed a mixed sentiment, highlighting both positive strides and looming challenges. The company showcased robust performance in its hospice segment, successful negotiations with payers, and prudent financial management. However, significant concerns were raised due to proposed rate cuts by CMS and ongoing pressure on the fee-for-service Medicare business.