Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $412.11M
• Dividend Yield: N/A
• Average Volume (3M): 333.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -0.39%
• EPS Growth: -1408.40%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 50,690,380
• 10 Day Avg. Volume: 341,728
• 30 Day Avg. Volume: 333,195
• 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: 2.47
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: -17.23
• 1Y Price Target: $8.83
• Price Target Upside: 8.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $8.50 ▲(4.55% Upside)

Enhabit, Inc.'s overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability issues. The earnings call provided some optimism with strategic initiatives and strong hospice segment growth, but regulatory uncertainties and valuation concerns weigh heavily on the stock's outlook.

Positive Factors

Strong Hospice Segment Growth

The hospice segment's robust growth indicates a strong market position and effective service delivery, contributing positively to the company's long-term revenue and profitability prospects.

Successful Payer Contract Negotiation

The improved payer contract enhances revenue per visit and encourages more referrals, strengthening Enhabit's competitive position and revenue stability.

Debt Reduction and Improved Liquidity

Reducing debt and improving liquidity enhances financial flexibility, allowing Enhabit to invest in growth opportunities and manage economic uncertainties more effectively.

Negative Factors

Disappointing CMS Rate Adjustments

Ongoing rate cuts from CMS pose a structural challenge, potentially reducing profitability and affecting Enhabit's ability to sustain operations in the long term.

Impact of Proposed 2026 Medicare Cuts

Medicare cuts threaten revenue streams, necessitating strategic adjustments to maintain service levels and financial health, impacting long-term business viability.

Potential Branch Closures

Branch closures indicate cost management challenges and could limit service reach, affecting market presence and growth potential in affected regions.

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 financial difficulties with declining revenues and profitability issues. The balance sheet shows increasing leverage, which could pose risks if not managed properly. Cash flow challenges further exacerbate the situation, requiring strategic improvements to stabilize financial health.

Income Statement

Enhabit, Inc. has faced declining revenue over recent years, with a slight uptick in the TTM period. The company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company has a moderate debt-to-equity ratio, which has increased over time, indicating rising leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio is reasonable, suggesting a balanced asset structure, but the increasing debt levels pose a risk.

Cash Flow

Operating cash flow is positive but low relative to net income, indicating cash flow challenges. Free cash flow has decreased significantly, and the free cash flow to net income ratio is high, suggesting reliance on cash reserves. The company needs to improve cash generation to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.03B	1.05B	1.08B	1.11B	1.08B
Gross Profit	501.60M	504.00M	510.70M	557.50M	592.70M	540.70M
EBITDA	-59.20M	-83.60M	-16.50M	22.50M	185.20M	145.40M
Net Income	-133.20M	-156.20M	-80.50M	-40.40M	111.10M	75.00M
Balance Sheet
Total Assets	1.23B	1.23B	1.43B	1.65B	1.72B	1.62B
Cash, Cash Equivalents and Short-Term Investments	38.90M	28.40M	27.40M	22.90M	5.40M	38.50M
Total Debt	532.80M	569.50M	610.10M	625.20M	56.90M	50.50M
Total Liabilities	642.50M	672.10M	731.90M	767.30M	236.70M	227.00M
Stockholders Equity	552.40M	523.50M	669.70M	844.60M	1.47B	1.38B
Cash Flow
Free Cash Flow	49.30M	47.40M	44.90M	73.00M	117.70M	21.30M
Operating Cash Flow	52.80M	51.20M	48.40M	80.10M	123.30M	24.90M
Investing Cash Flow	18.30M	-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
Financing Cash Flow	-62.40M	-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 8.13 is below the 20-day moving average (MA) of 8.24, above the 50-day MA of 8.08, and below the 200-day MA of 8.38, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 33.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EHAB.

Enhabit, Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADUS	―	$2.15B	25.78	8.54%	―	14.29%	7.85%
PNTG	―	$872.34M	32.28	11.44%	―	30.58%	24.86%
EHC	―	$11.47B	21.50	24.96%	0.55%	11.13%	27.60%
EHAB	―	$412.11M	―	-21.72%	―	-0.39%	-1408.40%
AMN	―	$754.60M	-2.53	-40.13%	―	-14.33%	-398.68%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	―	$401.64M	-47.35	-1.96%	―	-24.30%	-210.27%

Enhabit, Inc Corporate Events

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.

Enhabit, Inc. Reports Strong Q2 2025 Results

Enhabit, Inc. is a leading provider of home health and hospice care services, operating across 34 states with a focus on delivering patient care in home settings. The company leverages advanced technology and a compassionate team to enhance patient care experiences.

Enhabit, Inc Announces CEO Transition Plan

On August 6, 2025, Enhabit, Inc. announced that its President and CEO, Barbara A. Jacobsmeyer, will step down by July 31, 2026, or earlier upon the appointment of a successor. The company has initiated a leadership succession plan, retaining Russell Reynolds Associates to assist in the search for a new CEO. Jacobsmeyer will transition to a non-executive advisor role if a successor is appointed before her departure. Additionally, Enhabit has granted retention awards to several key officers to ensure leadership stability during this transition period.

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

Enhabit, Inc Reports Strong Q2 2025 Financial Results

Enhabit, Inc. reported strong financial results for the second quarter of 2025, with notable growth in both revenue and Adjusted EBITDA. The company saw a 1.3% increase in home health admissions and a 12.3% rise in hospice average daily census year over year. Enhabit also reduced its bank debt by $10 million, enhancing its financial position. The company’s strategic initiatives have positioned it well for continued success in the latter half of 2025.

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