Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $486.33M
• Dividend Yield: N/A
• Average Volume (3M): 559.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 514,580
• 30 Day Avg. Volume: 559,915
• 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: 1.85
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 15.16
• 1Y Price Target: $10.50
• Price Target Upside: 9.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $9.50 ▼(-1.25% Downside)

Enhabit, Inc's overall stock score is driven by mixed financial performance, with profitability challenges offset by strong cash flow improvements. Technical indicators show positive momentum, while valuation remains a concern due to negative earnings. The earnings call and corporate events provide optimism with strategic growth initiatives and improved financial guidance, but potential regulatory risks remain.

Positive Factors

Cash Flow Improvements

Improved cash flow generation enhances financial flexibility, allowing Enhabit to invest in growth opportunities and manage debt more effectively.

Successful Payer Renegotiations

Higher reimbursement rates from payer renegotiations improve revenue per visit, supporting long-term revenue growth and profitability.

Record Hospice Performance

Strong hospice performance indicates effective market positioning and operational efficiency, contributing to sustained profitability.

Negative Factors

Rising Debt Levels

Increased leverage can strain financial stability, limiting the company's ability to invest in growth and respond to market changes.

Profitability Challenges

Ongoing profitability issues may hinder Enhabit's ability to reinvest in its business, affecting long-term growth and competitive positioning.

CMS Pricing Challenges

Regulatory risks from CMS pricing changes could impact revenue and margins, affecting Enhabit's financial performance and patient access.

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 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: 9.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 9.62 is above the 20-day moving average (MA) of 9.20, above the 50-day MA of 8.59, and above the 200-day MA of 8.45, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.75 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
ADUS	74 Outperform	$2.10B	24.18	8.58%	―	18.77%	6.88%
PNTG	73 Outperform	$1.03B	38.85	10.87%	―	29.89%	10.33%
EHC	64 Neutral	$10.87B	20.41	24.94%	0.65%	11.13%	27.53%
EHAB	61 Neutral	$486.33M	-38.85	-2.10%	―	1.02%	89.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMN	50 Neutral	$607.71M	-2.26	-35.90%	―	-11.42%	-617.31%
CCRN	46 Neutral	$267.65M	-16.56	-3.76%	―	-22.14%	-787.87%

Enhabit, Inc Corporate Events

Enhabit, Inc to Present at 2025 Home Care Conference

Enhabit, Inc. announced its participation in the BofA Securities 2025 Home Care Conference, where key executives will discuss strategic focuses and business developments. The company is positioned for growth with improved financial metrics and clarity on reimbursement rates, which are expected to enhance investment and growth opportunities in 2026 and beyond.

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.

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.