Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $399.44M
• Dividend Yield: N/A
• Average Volume (3M): 544.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -0.39%
• EPS Growth: -1408.40%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Care Facilities
• EPS (TTM): 0.13
• Shares Outstanding: 50,690,380
• 10 Day Avg. Volume: 412,557
• 30 Day Avg. Volume: 544,139
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: -17.23
• 1Y Price Target: $8.83
• Price Target Upside: 12.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 53 Neutral
• Price Target: $8.00 ▲(1.52% Upside)

Enhabit, Inc. faces significant financial challenges with declining profitability and increasing leverage, which weigh heavily on its overall score. Despite positive momentum in technical indicators and strong performance in the hospice segment, valuation concerns and regulatory uncertainties present substantial risks. The earnings call provided some optimism with strategic initiatives and guidance, but the overall outlook remains cautious.

Positive Factors

Earnings

Adjusted EBITDA of $27m beat cons/our estimates by 9% and 6%, respectively.

Financial Performance

EHAB beat adj EBITDA cons by +6% and posted yty revenue growth for the first time since its spinoff.

Strategy

EHAB continues to advance its payor innovation strategy driving improved rates as seen in Non-Medicare revenues per visit up 4%.

Negative Factors

Growth Prospects

HH continues to face a challenging rate and mix environment, leading to a struggle in seeing meaningful growth across the enterprise over the next few years.

Outlook

Analysts see limited growth prospects for Home Health over the next 3-5 years due to a flat-to-down rate environment.

Revenue

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

Enhabit, Inc Business Overview & Revenue Model

Company Description

Enhabit, Inc (EHAB) is a leading healthcare provider specializing in home health and hospice services. The company operates within the healthcare sector, focusing on delivering personalized care to patients in the comfort of their homes. Enhabit, Inc aims to improve the quality of life for its patients by offering a range of services, including skilled nursing, physical therapy, occupational therapy, speech therapy, and hospice care.

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. The balance sheet remains stable with manageable leverage, and cash flows are positive, providing some resilience. However, ongoing operational and profitability issues could affect long-term financial health if not addressed.

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	1.04B	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: 7.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 7.88 is above the 20-day moving average (MA) of 7.65, above the 50-day MA of 7.61, and below the 200-day MA of 8.32, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.64 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
ENSG	76 Outperform	$9.91B	31.01	17.57%	0.14%	17.71%	41.83%
AMED	73 Outperform		―	7.26%	―	4.92%	-7.34%
PNTG	71 Outperform	$829.83M	30.70	11.44%	―	30.58%	24.86%
HCA	71 Outperform	$94.52B	16.97	-230.22%	0.68%	6.37%	11.25%
EHAB	53 Neutral	$399.44M	―	-21.72%	―	-0.39%	-1408.40%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%
INNV	47 Neutral	$517.10M	―	-12.03%	―	12.19%	-1.59%

Enhabit, Inc Corporate Events

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.

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.

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.

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.