Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $529.67M
• Dividend Yield: N/A
• Average Volume (3M): 325.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -1.08%
• EPS Growth: -65.84%
• Country: US
• Employees: 10,600
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Care Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 50,637,417
• 10 Day Avg. Volume: 379,661
• 30 Day Avg. Volume: 325,315
• PEG Ratio: 0.08
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.50
• Price Target Upside: -9.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Enhabit, Inc.'s overall stock score reflects the financial struggles with declining revenue and negative profit margins. Despite some strategic progress and growth in hospice, the company's valuation challenges and mixed technical indicators highlight ongoing difficulties. The stock score indicates a cautious outlook, with significant room for improvement.

Positive Factors

Financial Flexibility

Leverage is now down to 4.5x freeing up some flexibility with covenants and improvement in the credit facility pricing grid.

Hospice Performance

Hospice growth exceeded expectations with very strong EBITDA and ADC growth.

Valuation and Growth

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

Negative Factors

Branch Closures

EHAB expects to close 5 HHA branches and 2 Hospice branches, which could indicate challenges in those areas.

Home Health Revenue

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

Segment Challenges

Home Health again fell short compared to forecasts, marking the third consecutive year of declining EBITDA, indicating a challenging rate and mix environment.

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 its home health and hospice services. The company's revenue model is based on providing these services to patients, who are typically covered by Medicare, Medicaid, or private insurance plans. Enhabit receives reimbursement from these payers for the healthcare services delivered to patients. Key revenue streams include skilled nursing visits, therapy sessions, and hospice care services. Additionally, strategic partnerships with healthcare providers and facilities help Enhabit expand its reach and access a broader patient base, further contributing to its earnings.

Enhabit, Inc Financial Statement Overview

Summary

Enhabit, Inc. is facing financial challenges with declining revenue, negative profit margins, and moderate leverage. The stability of cash flows provides some liquidity cushion, but the overall financial health is under pressure due to operational inefficiencies and declining equity. Strategic improvements are necessary to enhance profitability and financial stability in the long term.

Income Statement

Enhabit, Inc. has shown a concerning decline in financial performance. The company experienced negative EBIT and Net Income in the most recent year, reflecting operational challenges. The Gross Profit Margin remains relatively stable at 100%, indicating cost-effective operations, but the Net Profit Margin has turned negative due to high expenses relative to revenue. The revenue growth rate is declining, with a decrease in revenue seen in recent years.

Balance Sheet

The balance sheet shows a significant drop in Stockholders' Equity, contributing to a concerning Debt-to-Equity Ratio of 0.15, which indicates a moderate leverage level. The Return on Equity (ROE) has turned negative, reflecting net losses. However, the equity ratio remains healthy at approximately 42.7%, indicating a solid asset base relative to equity.

Cash Flow

Operating cash flow has remained stable, and free cash flow has shown some growth, providing some stability in liquidity. The Free Cash Flow to Net Income Ratio is positive due to operational cash generation, despite net losses. However, the overall growth in operating and free cash flows is modest, indicating limited cash flow improvements.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	1.05B	1.08B	1.11B	1.08B
	Gross Profit
504.00M	510.70M	557.50M	592.70M	540.70M
	EBIT
-115.10M	-47.60M	107.60M	142.90M	102.70M
	EBITDA
-83.60M	-16.50M	22.50M	185.20M	145.40M
	Net Income Common Stockholders
-156.20M	-80.50M	62.50M	111.10M	75.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.40M	27.40M	22.90M	5.40M	38.50M
	Total Assets
1.23B	1.43B	1.65B	1.72B	1.62B
	Total Debt
76.90M	610.10M	625.20M	56.90M	50.50M
	Net Debt
48.50M	582.70M	602.30M	51.50M	12.00M
	Total Liabilities
672.10M	731.90M	767.30M	236.70M	227.00M
	Stockholders Equity
523.50M	669.70M	844.60M	1.47B	1.38B
Cash Flow		Free Cash Flow
47.40M	44.90M	73.00M	117.70M	21.30M
	Operating Cash Flow
51.20M	48.40M	80.10M	123.30M	24.90M
	Investing Cash Flow
-2.40M	-5.30M	-42.30M	-119.20M	-3.00M
	Financing Cash Flow
-48.30M	-40.50M	-18.60M	-36.10M	-16.70M

Enhabit, Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.46
• 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 10.46 is above the 20-day moving average (MA) of 8.14, above the 50-day MA of 8.40, and above the 200-day MA of 8.13, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 80.75 is Negative, neither overbought nor oversold. The STOCH value of 97.05 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
ENSG	78 Outperform	$8.14B	26.60	17.66%	0.18%	16.80%	39.99%
HCA	72 Outperform	$85.09B	15.72	-230.22%	0.76%	7.30%	11.60%
PNTG	69 Neutral	$1.02B	38.55	11.28%	―	30.04%	43.47%
AMED	68 Neutral	$3.13B	35.31	7.85%	―	5.34%	―
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%
INNV	52 Neutral	$491.45M	―	-12.03%	―	12.19%	-1.59%
EHAB	49 Neutral	$529.67M	―	-22.81%	―	-1.08%	-65.84%

Enhabit, Inc Corporate Events

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.

Spark’s Take on EHAB Stock

According to Spark, TipRanks’ AI Analyst, EHAB is a Neutral.

Enhabit, Inc.’s overall score reflects financial struggles with declining revenue and negative profit margins, compounded by negative technical indicators. Despite some strategic progress and growth in hospice, the company’s valuation and market momentum highlight challenges. The stock score indicates a need for cautious optimism, with significant room for improvement.

To see Spark’s full report on EHAB stock, click here.

Enhabit, Inc. Sells Medalogix Stake for $21 Million

Enhabit, Inc. sold its investment interest in Medalogix, a healthcare predictive data and analytics company, for approximately $21 million following Medalogix’s merger with Forcura in a private equity-backed transaction on March 19, 2025. The proceeds from this sale are expected to be used by Enhabit, Inc. to reduce debt under its credit agreement, potentially impacting its financial stability and operations.

Enhabit, Inc. Reports Q4 2024 Financial Results

Enhabit, Inc. reported its fourth-quarter results for 2024, highlighting a strategic focus on long-term growth in its home health and hospice segments. The company achieved a net service revenue of $258.2 million, despite a net loss of $46.0 million. Key achievements included a 10.7% increase in non-Medicare home health admissions and a 13.1% rise in hospice net service revenue. The company also reduced its bank debt by $10 million in Q4, totaling a $40 million reduction for 2024, and opened three new hospice locations in the same quarter.

Enhabit, Inc. Nominates Stephan Rodgers for Board

On February 25, 2025, Enhabit, Inc. announced its intention to nominate Stephan Rodgers for election to its Board of Directors at the 2025 annual stockholders meeting. Rodgers, with extensive experience in the home health and hospice industry, previously served as CEO of AccentCare, Inc. His appointment is expected to bring valuable industry expertise to Enhabit’s board, aiding in the execution of long-term strategies. Rodgers is subject to non-compete obligations until June 30, 2025, and will join the board post-election if stockholders approve.