Enhabit, Inc. (EHAB) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on EHAB

Enhabit, Inc.'s recent performance was driven by strong Q1 2025 earnings, exceeding analyst expectations with a beat of $0.03 per share. The company's home health census grew 3.7% sequentially, while hospice census increased 12.3% year-over-year, demonstrating steady growth in its core businesses. Additionally, Enhabit's improved profitability and continued balance sheet strength contributed to its positive performance.

1.c. Company Highlights

Last Price	9.33
Change Percentage	0.21%
Open	9.4
Previous Close	9.31
Market Cap ( Millions)	473
Volume	276775
Year High	10.9
Year Low	6.47
M A 50	8.32
M A 200	8.39

FCF Yield	10.43%
Dividend Yield	0.00%
ROE	-24.38%
Debt / Equity	96.45%
Net Debt / EBIDTA	-834.29%
Price To Book	0.85
Price Earnings Ratio	-3.54
Price To FCF	9.59
Price To sales	0.46
EV / EBITDA	-16.33

2. Enhabit Inc. Delivers Strong Q3 2025 Earnings with Revenue Growth and Margin Expansion

Enhabit Inc. reported consolidated net revenue of $263.6 million for Q3 2025, a 3.9% increase year-over-year, driven primarily by strong performance in the Hospice segment. The company's adjusted EBITDA was impacted by margin compression in the Home Health segment, but the Hospice segment delivered record revenues and profitability, with adjusted EBITDA growth of over 70%. Earnings per share (EPS) came in at $0.17, beating estimates of $0.12. The company's revenue growth and profitability were achieved despite a challenging operating environment, demonstrating the effectiveness of its operational execution and flexible business model.

Publication Date: Nov -30

                                    📋 Highlights
                                    Home Health Admissions Growth::
                                                3.6% YoY increase in total admissions, with census rising 3.7%.
Non-Medicare Revenue Growth::
                                                10.4% YoY increase in non-Medicare admissions and 2.8% higher non-Medicare revenue per visit.
Hospice Segment Performance::
                                                70%+ YoY adjusted EBITDA growth, with 830 bps margin improvement to 27.3% of revenue.
Consolidated Revenue::
                                                $263.6M in Q3, up 3.9% YoY ($10M increase), driven by Hospice’s 20% revenue growth.
G&A Cost Reductions::
                                                $1–1.5M quarterly savings from headcount reductions and in-sourcing, with durable impacts.

                                

Segment Performance

The Hospice segment continued to drive growth, with revenue increasing by 20% year-over-year, driven by double-digit census volume growth. The Home Health segment reported relatively flat revenue, with a 0.2% decrease year-over-year, but would have grown by approximately 1% if not for payer renegotiation disruptions and branch closures. As Barbara Jacobsmeyer noted, "our experienced leaders, high-performing teams, and innovative technology position us well to manage through challenges and continue growing market share."

Operational Highlights

Enhabit Inc. achieved significant improvements in its operational metrics, with home health total admissions up 3.6% year-over-year and census increasing 3.7%. Non-Medicare admissions grew by 10.4%, and non-Medicare revenue per visit increased by 2.8%. The company's focus on managing its payer mix and improving operational efficiency contributed to its strong financial performance.

Guidance and Outlook

The company updated its full-year guidance, increasing its revenue range to $1.058 billion to $1.063 billion, adjusted EBITDA to $106 million to $109 million, and adjusted free cash flow to $53 million to $61 million. Analysts estimate next year's revenue growth at 4.1%, indicating a continued upward trajectory for the company.

Valuation and Metrics

Enhabit Inc.'s current valuation metrics include a P/E Ratio of -3.4, P/B Ratio of 0.82, and EV/EBITDA of -15.99. The company's Free Cash Flow Yield is 10.89%, indicating a strong ability to generate cash. With a Net Debt / EBITDA ratio of -8.34, Enhabit Inc. has a healthy balance sheet, and its return on invested capital (ROIC) and return on equity (ROE) are -9.69% and -24.38%, respectively.

3. NewsRoom

Enhabit Announces Participation in Bank of America Home Care Conference 2025

Dec -02

Source: businesswire.com

Are Medical Stocks Lagging Enhabit, Inc. (EHAB) This Year?

Dec -02

Source: zacks.com

Enhabit, Inc. (EHAB) Presents at UBS Global Healthcare Conference 2025 Transcript

Nov -12

Source: seekingalpha.com

Enhabit, Inc. (EHAB) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Enhabit (EHAB) Surpasses Q3 Earnings Estimates

Nov -06

Source: zacks.com

Enhabit Reports Third Quarter 2025 Financial Results

Nov -05

Source: businesswire.com

Analyzing Enhabit (NYSE:EHAB) and Pediatrix Medical Group (NYSE:MD)

Nov -05

Source: defenseworld.net

Enhabit Announces Participation in UBS Global Healthcare Conference 2025

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Home Health

Expected Growth: 4.5%

Enhabit, Inc.'s Home Health segment growth of 4.5% is driven by increasing demand for home-based care, aging population, and government initiatives promoting cost-effective healthcare. Additionally, Enhabit's strategic acquisitions, expanded service offerings, and investments in technology and staff development contribute to its growth momentum.

Hospice

Expected Growth: 5.5%

Enhabit's Hospice segment growth of 5.5% is driven by increasing demand for end-of-life care, an aging population, and a shift towards value-based care. Additionally, Enhabit's strategic expansion into new markets, investments in technology, and focus on quality care are contributing to its growth.

7. Detailed Products

Energy Efficiency Solutions

Enhabit's energy efficiency solutions help homeowners reduce energy consumption and lower their energy bills. The company offers a range of solutions, including energy audits, insulation, and window replacements.

Solar Energy Systems

Enhabit's solar energy systems provide homeowners with a clean and renewable source of energy. The company offers customized solar panel installations and energy storage solutions.

Home Energy Storage

Enhabit's home energy storage solutions provide homeowners with a reliable and efficient way to store excess energy generated by their solar panels or grid.

Smart Home Automation

Enhabit's smart home automation solutions provide homeowners with a seamless and integrated way to control their home's energy usage, lighting, and temperature.

Home Energy Audits

Enhabit's home energy audits provide homeowners with a comprehensive assessment of their home's energy efficiency and identify areas for improvement.

8. Enhabit, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Enhabit, Inc. faces moderate threat from substitutes due to the availability of alternative sustainable living options.

Bargaining Power Of Customers

Customers have high bargaining power due to the availability of multiple sustainable living options, allowing them to negotiate prices and services.

Bargaining Power Of Suppliers

Suppliers have low bargaining power due to the company's strong relationships and contracts, reducing the risk of supply chain disruptions.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry, such as regulatory requirements and initial investment costs.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the sustainable living industry, leading to intense competition.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	45.60%
Debt Cost	7.25%
Equity Weight	54.40%
Equity Cost	7.25%
WACC	7.25%
Leverage	83.81%

11. Quality Control: Enhabit, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

P3 Health Partners

A-Score: 4.6/10

Value: 9.8

Growth: 4.4

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Enhabit

A-Score: 4.0/10

Value: 8.8

Growth: 0.7

Quality: 3.7

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

American Oncology Network

A-Score: 3.5/10

Value: 3.6

Growth: 4.2

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Community Health Systems

A-Score: 3.5/10

Value: 10.0

Growth: 2.7

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

InnovAge Holding

A-Score: 2.6/10

Value: 4.8

Growth: 3.2

Quality: 3.4

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

ModivCare

A-Score: 2.5/10

Value: 8.0

Growth: 2.2

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.50%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.25%

Enhabit, Inc. - US29332G1022

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EHAB

1.c. Company Highlights

Lower Growth

Average Quality

Stable Momentum

Earnings Beats

Lower Quality

Revenues Miss

Fairly Valued

Earnings Miss

Cheaper

Average Yield

Medium Volatility

Revenues Beats

2. Enhabit Inc. Delivers Strong Q3 2025 Earnings with Revenue Growth and Margin Expansion

Segment Performance

Operational Highlights

Guidance and Outlook

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Home Health

Expected Growth: 4.5%

Hospice

Expected Growth: 5.5%

7. Detailed Products

Energy Efficiency Solutions

Solar Energy Systems

Home Energy Storage

Smart Home Automation

Home Energy Audits

8. Enhabit, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Enhabit, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.33$

Current Price

9.33$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA