Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $689.84M
• Dividend Yield: N/A
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.55
• Revenue Growth: 1.02%
• EPS Growth: 89.58%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.14
• Shares Outstanding: 50,723,244
• 10 Day Avg. Volume: 3,867,419
• 30 Day Avg. Volume: 1,596,984
• 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: 1.67
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 17.99
• 1Y Price Target: $13.44
• Price Target Upside: -1.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $1.10B

• Rating: 65 Neutral
• Price Target: $14.50 ▲(6.54% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by improving fundamentals and strong cash flow (despite still-negative net profitability), supported by constructive earnings-call guidance and operational momentum (notably hospice growth and better leverage). Technicals are positive but appear overextended, and valuation looks reasonable on a low P/E, together producing an overall mid-to-upper score.

Positive Factors

Cash Generation

Consistently positive operating and free cash flow over the trailing twelve months provides durable internal funding for de novo site openings, working capital and debt servicing. Strong cash generation reduces refinancing risk, supports reinvestment, and cushions the path to sustained GAAP profitability even while net income lags.

Hospice Segment Profitability

Rapid, high‑margin hospice growth materially improves consolidated EBITDA and cash flow conversion. Durable demand for end‑of‑life services and seven quarters of sequential census growth indicate structural momentum, diversifying revenue mix away from flatter home health volumes and helping to drive sustainable margin expansion over coming quarters.

Improved Leverage & Interest Savings

Meaningful deleveraging and lower interest costs enhance financial flexibility and free cash flow retention. Reduced leverage cuts financing vulnerability, enables strategic reinvestment and de novo expansion, and paired with an amended credit package, creates a more stable capital structure to support multi‑quarter operational improvements.

Negative Factors

Home Health Revenue Stagnation

Persistent flat revenue despite modest admissions growth signals structural pressure on unit economics from payor and mix shifts. Without sustainable per‑visit rate recovery or faster volume gains, margins and EBITDA expansion are constrained, requiring operational or payer‑contract wins to restore durable top‑line growth.

Regulatory/Reimbursement Risk (CMS)

Material CMS reimbursement changes can structurally reduce revenue per visit for Medicare patients, who are a core payor. Such regulatory shifts can compress margins across the home health portfolio, require reengineering of care delivery economics, and create multi‑quarter headwinds to revenue and profitability if not mitigated by contract renegotiations or mix shifts.

Takeover and Privatization Risks

The pending PE acquisition is a structural change: privatization reduces public disclosure and may prioritize debt‑funded growth or cost actions. Leveraged buyouts can elevate financial covenants and shorten visibility for external stakeholders, and the suspension of public guidance reduces transparency into execution against operational objectives over the next 2–6 months.

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

Financials appear in recovery: TTM profitability improved materially (EBIT positive and net loss narrowed) and cash generation is strong (solid operating cash flow and free cash flow). However, net margin remains slightly negative and revenue growth is still modest, keeping the overall financial quality mid-range despite an improved, manageable leverage profile.

Income Statement

TTM (Trailing-Twelve-Months) results show the business has largely stabilized versus the heavy losses in 2023–2024, with EBIT turning positive and the net loss narrowing sharply. Gross margin has stayed relatively steady around the high‑40% range, but bottom-line profitability remains challenged (TTM net margin still slightly negative) and revenue growth has been modest after several years of mostly flat-to-down sales.

Balance Sheet

Leverage looks manageable in TTM (Trailing-Twelve-Months), with debt well supported by equity and an improved debt load versus 2023–2024 levels. However, returns to shareholders remain negative due to ongoing net losses, and the multi-year history shows leverage and equity levels have shifted materially, indicating some balance-sheet volatility over the period.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are solid and improved versus the prior annual period, with strong free-cash-flow growth. That said, cash flow coverage is not especially high, and the company is producing meaningful cash while still reporting a small net loss, highlighting a disconnect that investors will want to see resolve through sustained earnings improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.03B	1.05B	1.07B	1.11B	1.08B
Gross Profit	382.40M	504.00M	510.70M	545.50M	592.70M	540.70M
EBITDA	63.90M	-83.60M	-16.50M	22.50M	185.20M	145.40M
Net Income	-4.60M	-156.20M	-80.50M	-40.40M	111.10M	75.00M
Balance Sheet
Total Assets	1.17B	1.23B	1.43B	1.53B	1.72B	1.62B
Cash, Cash Equivalents and Short-Term Investments	43.60M	28.40M	27.40M	22.90M	5.40M	38.50M
Total Debt	74.00M	569.50M	610.10M	625.20M	56.90M	50.50M
Total Liabilities	603.00M	672.10M	731.90M	751.50M	236.70M	227.00M
Stockholders Equity	534.00M	523.50M	669.70M	741.70M	1.47B	1.38B
Cash Flow
Free Cash Flow	65.80M	47.40M	44.90M	73.00M	119.00M	21.70M
Operating Cash Flow	70.70M	51.20M	48.40M	80.10M	123.30M	24.90M
Investing Cash Flow	16.70M	-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
Financing Cash Flow	-72.20M	-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 13.61 is above the 20-day moving average (MA) of 12.12, above the 50-day MA of 10.91, and above the 200-day MA of 9.05, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 81.68 is Negative, neither overbought nor oversold. The STOCH value of 98.45 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
ADUS	75 Outperform	$1.91B	20.66	8.58%	―	18.77%	6.88%
EHC	73 Outperform	$10.74B	18.84	25.11%	0.65%	11.13%	27.53%
PNTG	72 Outperform	$1.14B	32.89	10.87%	―	29.89%	10.33%
EHAB	65 Neutral	$689.84M	9.15	-2.10%	―	1.02%	89.58%
CCRN	54 Neutral	$299.10M	-2.77	-3.76%	―	-22.14%	-787.87%
AMN	52 Neutral	$811.08M	-6.34	-35.90%	―	-11.42%	-617.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Enhabit, Inc Corporate Events

Kinderhook Acquisition to Take Enhabit Private, Extend Credit

Enhabit reported fourth-quarter 2025 net service revenue of $270.4 million and an 11.6% year-on-year increase in consolidated adjusted EBITDA to $28 million, despite a net loss of $38.7 million driven in part by goodwill impairment. Operationally, the company posted solid growth in home health and hospice patient volumes, lowered home health cost per patient day, opened 10 de novo sites in 2025, and continued to reduce bank debt and interest expense, signaling improved cash generation and balance-sheet resilience.

The company highlighted a pending acquisition by private equity firm Kinderhook Industries for $13.80 per share in cash, valuing Enhabit at about $1.1 billion and expected to close in the second quarter of 2026, subject to customary approvals. In connection with the transaction and its strategic transition, Enhabit amended and extended its credit facilities to 2031, suspended earnings calls and guidance, and maintained its focus on admissions growth and margin improvement in both home health and hospice segments.

The most recent analyst rating on (EHAB) stock is a Hold with a $13.80 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit Amends Credit Agreement, Secures New Loan Facilities

On February 26, 2026, Enhabit, Inc. entered into an amended and restated credit agreement establishing a $315 million term loan A facility and a $160 million revolving credit facility, both maturing five years from closing. Interest is tied to SOFR or an alternate base rate with margins and commitment fees that vary based on the company’s total net leverage ratio, and the term loan amortizes at 7.50% per year starting June 30, 2026.

Proceeds are being used to refinance the company’s June 1, 2022 credit agreement, cover related fees, and support general corporate purposes, with the revolver also providing letter of credit capacity. The facilities are secured by first‑priority liens on substantially all assets, guaranteed by material domestic subsidiaries, and subject to customary covenants and financial maintenance tests on leverage and fixed charge coverage, underscoring lender protections and shaping Enhabit’s future capital flexibility.

The most recent analyst rating on (EHAB) stock is a Hold with a $13.80 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit Announces Chief Accounting Officer Resignation and Transition

Enhabit, Inc. announced that Senior Vice President and Chief Accounting Officer Collin McQuiddy notified the company on February 24, 2026, of his decision to resign effective March 27, 2026, and will remain through that date to support the transition, with the company noting his departure is to pursue another opportunity and not the result of any disagreement over operations, policies or practices. Following his exit, Chief Financial Officer Ryan Solomon will assume the duties of principal accounting officer in addition to his CFO role without any change in compensation, signaling a temporary consolidation of financial leadership responsibilities as the company searches for McQuiddy’s successor and aims to maintain continuity in its financial reporting and governance structures.

The most recent analyst rating on (EHAB) stock is a Hold with a $13.80 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit to Be Acquired by Kinderhook Affiliate

On February 22, 2026, Enhabit, Inc. agreed to be acquired by Anchor Parent, LLC, an affiliate of Kinderhook Industries, in an all‑cash merger valuing the home health and hospice provider at about $1.1 billion. Enhabit stockholders are to receive $13.80 per share in cash, a premium to recent trading levels, with Enhabit becoming a private company under its existing brand once the deal closes, subject to shareholder and regulatory approvals.

The board unanimously approved the transaction, equity awards will generally vest and be cashed out at the deal price, and certain executives and other stockholders have signed support agreements to back the merger. Kinderhook has lined up sufficient debt and equity financing, while Enhabit has suspended its 2026 guidance and earnings call, signaling a strategic shift away from public‑market scrutiny toward longer‑term, private‑equity‑backed growth in home‑based care.

The most recent analyst rating on (EHAB) stock is a Hold with a $13.80 price target. To see the full list of analyst forecasts on Enhabit, Inc stock, see the EHAB Stock Forecast page.

Enhabit Secures $43.1 Million in Delaware Legal Settlement

On February 12, 2026, Enhabit, Inc. announced that, together with Encompass Health Corporation, it has collected $43.1 million in full satisfaction of claims for attorneys’ fees and mitigation damages in a Delaware Court of Chancery case. The payment was obtained from former officer Chris Walker, Vistria Group senior partner David Schuppan, and Nautic Partners managing director Christopher Corey, following a December 2024 judgment finding egregious breaches of the duty of loyalty by several former senior officers.

Under the same Delaware ruling, the court imposed a constructive trust granting Enhabit and Encompass Health a 43% share of VitalCaring Group’s ongoing profits and exit proceeds if the business is sold, to be split between the two companies. The settlement secures a meaningful cash recovery for both firms while leaving intact the constructive trust order against other defendants, potentially providing additional financial upside and reinforcing legal accountability for fiduciary misconduct in the home health and hospice sector.

The most recent analyst rating on (EHAB) stock is a Hold with a $11.50 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 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.

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