Enhabit, Inc (EHAB)
NYSE:EHAB
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Enhabit, Inc
(NYSE:EHAB)
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Rating:55Neutral
Price Target:
$14.00
▲(2.04% Upside)
Action:ReiteratedDate:05/05/26
The score is driven primarily by improving financial performance and strong cash flow, supported by generally stable technicals. These positives are tempered by weak valuation optics from ongoing net losses (negative P/E) and event risk around the take-private deal due to shareholder litigation.
Positive Factors
Strong cash generation
Enhabit’s improved operating and free cash flow is a durable strength: it funds de novo openings, funds working capital and debt reduction, and reduces reliance on equity markets. Consistent cash generation supports reinvestment and deleveraging even while GAAP earnings recover.
Negative Factors
Merger-related litigation risk
Ongoing shareholder suits and disclosure challenges create execution risk for the take-private deal, can delay closing, increase legal costs, and distract management. This event risk could constrain strategic flexibility and governance focus for months while litigation and voting remain unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Enhabit’s improved operating and free cash flow is a durable strength: it funds de novo openings, funds working capital and debt reduction, and reduces reliance on equity markets. Consistent cash generation supports reinvestment and deleveraging even while GAAP earnings recover.
Read all positive factors
Enhabit, Inc (EHAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$705.38M
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)9.4
Beta (1Y)0.49
Revenue Growth2.44%
EPS Growth97.14%
CountryUS
Employees10,600
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.09
Shares Outstanding51,225,605
10 Day Avg. Volume1,001,827
30 Day Avg. Volume1,237,935
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)0.88
Price to Sales (P/S)0.44
P/FCF Ratio7.12
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit1.48
Enterprise Value/Ebitda8.50
Forecast
1Y Price Target
$13.80Price Target Upside0.58% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.6
Revenue Forecast (FY)$1.10B
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 administra...
How the Company Makes Money
Enhabit makes money primarily by providing patient care visits and episodes of care in home health and hospice and receiving reimbursement from third-party payors. In its home health segment, revenue is generated from skilled nursing and therapy s...
Enhabit, Inc Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue comes from each business line (for example home health, hospice, care management or other services), revealing which operations drive growth and profit. A shifting segment mix can signal strategic focus, margin pressures, or concentration risk tied to specific services or markets.
Shows how much revenue comes from each business line (for example home health, hospice, care management or other services), revealing which operations drive growth and profit. A shifting segment mix can signal strategic focus, margin pressures, or concentration risk tied to specific services or markets.
Data provided by:
The Fly
The FlyEnhabit, Inc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
Enhabit delivered strong financial and operational performance, including significant growth in admissions and hospice profitability, and successfully renegotiated payer contracts. However, challenges remain in Home Health revenue stagnation and potential future impacts from CMS pricing changes.Positive Updates
Recognition for Workplace Excellence
Enhabit has been named as one of Fortune's Best Places to Work in health care, highlighting a culture of excellence and strong leadership.
Negative Updates
Home Health Revenue Stagnation
Home Health revenue was relatively flat year-over-year on census growth, offset by lower unit revenues primarily due to mix.
Read all updates
Q3-2025 Updates
Positive
Negative
Recognition for Workplace Excellence
Enhabit has been named as one of Fortune's Best Places to Work in health care, highlighting a culture of excellence and strong leadership.
Read all positive updates
Company Guidance
During the third quarter of 2025 earnings call for Enhabit Inc., several key metrics were highlighted, reflecting the company's strong performance and strategic initiatives. Home health total admissions increased by 3.6% year-over-year, with a 3.7% rise in census, and normalized admission growth of 4.3% when accounting for closed branches. Non-Medicare admissions surged by 10.4%, contributing to a 2.8% increase in non-Medicare revenue per visit year-over-year. The company successfully renegotiated a national payer contract, achieving a low double-digit increase in per visit rates effective August 15, 2025, and admissions with this payer rose to 120% of the weekly average by late September. Enhabit reported seven consecutive quarters of sequential census growth in its hospice segment, with a 12.6% increase in census and a 1.4% year-over-year rise in total admissions. The company added 11% more direct sales team members to broaden its referral sources and opened seven de novo locations year-to-date, aiming for a total of ten by the end of 2025. Financially, Enhabit reported consolidated net revenue of $263.6 million, a 3.9% increase from the prior year, with adjusted EBITDA of $27 million, reflecting a 10.2% year-over-year growth and a 50 basis point improvement in EBITDA margin. The company also reduced its net debt to adjusted EBITDA leverage ratio to 3.9x, down from 5.4x in Q4 2023, leading to a $19 million reduction in annualized cash interest expense. Enhabit updated its full-year guidance, projecting revenues between $1.058 billion and $1.063 billion, with adjusted EBITDA expected to range from $106 million to $109 million, and adjusted free cash flow guidance increased to between $53 million and $61 million.Enhabit, Inc Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.03B | 1.05B | 1.07B | 1.11B |
| Gross Profit | 497.30M | 504.00M | 510.70M | 545.50M | 592.70M |
| EBITDA | 86.30M | -83.60M | -16.50M | 22.50M | 185.20M |
| Net Income | -4.60M | -156.20M | -80.50M | -40.40M | 111.10M |
Balance Sheet | |||||
| Total Assets | 1.17B | 1.23B | 1.43B | 1.53B | 1.72B |
| Cash, Cash Equivalents and Short-Term Investments | 43.60M | 28.40M | 27.40M | 22.90M | 5.40M |
| Total Debt | 500.00M | 569.50M | 610.10M | 625.20M | 56.90M |
| Total Liabilities | 603.00M | 672.10M | 731.90M | 751.50M | 236.70M |
| Stockholders Equity | 534.00M | 523.50M | 669.70M | 741.70M | 1.47B |
Cash Flow | |||||
| Free Cash Flow | 65.80M | 47.40M | 44.90M | 73.00M | 119.00M |
| Operating Cash Flow | 70.70M | 51.20M | 48.40M | 80.10M | 123.30M |
| Investing Cash Flow | 16.70M | -2.40M | -5.30M | -42.30M | -119.20M |
| Financing Cash Flow | -72.20M | -48.30M | -40.50M | -18.60M | -36.10M |
Enhabit, Inc Technical Analysis
Positive
13.72
Price Trends
13.16
Positive
11.50
Positive
9.63
Positive
Market Momentum
0.17
Positive
54.49
Neutral
6.25
Positive
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 13.72 is below the 20-day moving average (MA) of 13.85, above the 50-day MA of 13.16, and above the 200-day MA of 9.63, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 6.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EHAB.
Enhabit, Inc Risk Analysis
Enhabit, Inc disclosed 33 risk factors in its most recent earnings report. Enhabit, Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enhabit, Inc Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.82B | 17.26 | 9.34% | ― | 19.55% | 21.54% | |
71 Outperform | $10.63B | 12.33 | 25.35% | 0.65% | 10.05% | 23.59% | |
70 Outperform | $1.24B | 31.06 | 9.23% | ― | 36.76% | 11.22% | |
66 Neutral | $867.83M | 2.87 | -4.98% | ― | -8.49% | 35.03% | |
59 Neutral | $423.05M | -17.34 | -27.10% | ― | -21.56% | -577.69% | |
55 Neutral | $705.38M | 9.39 | -0.58% | ― | 2.44% | 97.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
EHAB
Enhabit, Inc
13.77
3.49
33.95%
ADUS
Addus Homecare
97.29
-13.62
-12.28%
AMN
AMN Healthcare Services
22.45
0.45
2.05%
CCRN
Cross Country Healthcare
13.09
-0.92
-6.57%
EHC
Encompass Health
107.15
-8.49
-7.34%
PNTG
Pennant Group
35.73
7.15
25.02%
Enhabit, Inc Corporate Events
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Enhabit Faces Shareholder Suits Over Kinderhook Take-Private Deal
Negative
May 5, 2026
Enhabit, Inc., a home health and hospice provider, agreed on February 22, 2026 to be acquired by Anchor Parent, LLC, an affiliate of Kinderhook Industries, through a merger that will take Enhabit private, following an extended multi-party strategi...
Financial DisclosuresM&A TransactionsShareholder Meetings
Enhabit Advances Kinderhook Acquisition With Antitrust Clearance
Positive
Apr 16, 2026
Enhabit, Inc., a leading home health and hospice care provider, operates in the U.S. post-acute healthcare sector, offering in-home clinical and end-of-life services supported by referral partners and payors. Its NYSE-listed platform has made it a...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Kinderhook Acquisition to Take Enhabit Private, Extend Credit
Positive
Mar 5, 2026
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,...
Business Operations and StrategyPrivate Placements and Financing
Enhabit Amends Credit Agreement, Secures New Loan Facilities
Positive
Mar 4, 2026
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 SOF...
Executive/Board Changes
Enhabit Announces Chief Accounting Officer Resignation and Transition
Neutral
Feb 27, 2026
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 transit...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Enhabit to Be Acquired by Kinderhook Affiliate
Positive
Feb 23, 2026
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 rec...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Enhabit Secures $43.1 Million in Delaware Legal Settlement
Positive
Feb 12, 2026
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. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.