Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $475.99M
• Dividend Yield: N/A
• Average Volume (3M): 417.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -1.08%
• EPS Growth: -65.84%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Care Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 50,637,417
• 10 Day Avg. Volume: 517,301
• 30 Day Avg. Volume: 417,029
• PEG Ratio: -0.31
• Price to Book (P/B): 31.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.73
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: -4.13
• 1Y Price Target: $9.50
• Price Target Upside: -0.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $9.50 ▼(-0.11%Downside)

Enhabit, Inc. receives a score of 52, mainly due to operational challenges and negative valuation metrics. Financial performance is under pressure from declining revenues and negative profitability, though stable cash flows and balance sheet provide some support. Positive signals from recent earnings call regarding growth and cost efficiency improvements contribute positively but are outweighed by technical and valuation concerns.

Positive Factors

Earnings

EPS of $0.10 came in above consensus.

Financial Performance

The stock is seen positively due to its relatively low valuation and potential for EBITDA upside driven by continued improvements in key performance indicators.

Payer Innovation Strategy

The company is advancing its payer innovation strategy, with a notable increase in non-Medicare revenue per visit.

Negative Factors

Home Health Performance

Home Health faced a challenging rate and mix environment, resulting in performance falling short of forecasts.

Revenue Shortfall

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

Segment Outlook

The Home Health segment revenue outlook is slightly lowered with continued margin pressure expected.

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. faces significant challenges with declining revenue and persistent net losses impacting profitability and returns. However, the balance sheet remains stable with manageable leverage, and cash flows are positive, providing some resilience.

Income Statement

The company has been experiencing declining revenues, with a TTM revenue of $1.032 billion compared to $1.048 billion in the previous year. Gross profit margin is relatively strong at 46.7% TTM, but net profit margin is negative due to significant net losses. The EBIT and EBITDA margins are also negative, indicating operational challenges. Overall, the income statement reflects financial pressures and declining profitability.

Balance Sheet

The balance sheet shows a moderate equity position with a debt-to-equity ratio of 0.18 TTM, reflecting manageable leverage. However, the return on equity is negative due to net losses. The equity ratio is reasonable at 44% TTM, indicating a stable capital structure. Despite these strengths, persistent losses pose a risk to financial stability.

Cash Flow

The company's cash flow position is relatively stable, with positive operating cash flow of $51.8 million TTM and positive free cash flow of $49.5 million. The free cash flow to net income ratio is not meaningful due to negative net income, but the operating cash flow to net income ratio is robust, indicating effective cash generation despite losses. Cash reserves are modest but consistent.

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
EBITDA	-62.80M	-83.60M	-16.50M	22.50M	185.20M	145.40M
Net Income	-138.60M	-156.20M	-80.50M	-40.40M	111.10M	75.00M
Balance Sheet
Total Assets	1.24B	1.23B	1.43B	1.65B	1.72B	1.62B
Cash, Cash Equivalents and Short-Term Investments	39.50M	28.40M	27.40M	22.90M	5.40M	38.50M
Total Debt	100.00K	569.50M	610.10M	625.20M	56.90M	50.50M
Total Liabilities	662.60M	672.10M	731.90M	767.30M	236.70M	227.00M
Stockholders Equity	543.20M	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: 9.51
• 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 9.51 is below the 20-day moving average (MA) of 10.02, above the 50-day MA of 9.47, and above the 200-day MA of 8.36, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.14 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	$8.82B	28.81	17.66%	0.16%	16.80%	39.99%
HCA	76 Outperform	$91.25B	16.85	-230.22%	0.76%	7.30%	11.60%
AMED	71 Outperform	$3.22B	36.28	7.85%	―	5.34%	―
PNTG	69 Neutral	$1.03B	38.88	11.28%	―	30.04%	43.47%
INNV	53 Neutral	$515.75M	―	-12.03%	―	12.19%	-1.59%
EHAB	52 Neutral	$475.99M	―	-22.81%	―	-1.08%	-65.84%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.34%	16.99%	1.69%

Enhabit, Inc Corporate Events

Enhabit, Inc Approves 2025 Equity Compensation Plan

On June 26, 2025, Enhabit, Inc. held its Annual Meeting of Stockholders, where the 2025 Equity and Incentive Compensation Plan was approved. This plan, administered by the Compensation & Human Capital Committee, allows for various equity and cash-based awards to company officers, employees, and non-employee directors, with a total of 3,300,000 shares available for awards under specific conditions. Additionally, the meeting included the election of directors, ratification of PricewaterhouseCoopers LLP as the independent accounting firm, and an advisory vote on executive compensation.

The most recent analyst rating on (EHAB) stock is a Sell 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 to Present at Global Healthcare Conference

Enhabit, Inc. announced its participation in the Goldman Sachs 46th Annual Global Healthcare Conference on June 10, 2025, where its executives will discuss the company’s strategic priorities and financial performance. The company has shown significant growth in its home health and hospice segments, with improvements in patient census and financial metrics, indicating a positive trajectory and reduced leverage, which may enhance its market position and stakeholder confidence.

The most recent analyst rating on (EHAB) stock is a Sell 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 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.