Enhabit Inc. Common Stock (EHAB)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Enhabit as a home health and hospice provider with 10,800 employees, serving patients in their homes. The numbers show a business that is not compounding quickly. Revenue growth is only 1.89%, and while profit growth is 7.87%, trailing EPS is -$0.07, leaving the P/E meaningless at -197.14 based on the 2026-05-14 close. In the first quarter of 2026, revenue was $264.8 million and net income was $19.2 million, a 7.25% margin, so profitability is not absent. But a return on equity of -0.19% and ROCE of 3.08% tell me capital returns are weak. The balance sheet has debt-to-equity of 0.82, and the Altman Z-Score of 1.23 is not comforting. On the positive side, trailing twelve-month free cash flow is $80.9 million, an 11.5% FCF yield on a $703.3 million market cap, and the Piotroski F-Score is 7/9. That cash generation gives some margin of safety. Valuation is mixed: at the 2026-05-14 close, P/B is 1.31, but EV/EBITDA is 20.99—rich for 1.89% revenue growth. The FairStock Score is 54/100, and no Lynch category is assigned because there are not enough filed annual results. At $13.80, near the upper end of the 52-week range of $7.58 to $14.22, I would want a wider discount before calling it a Graham-style bargain. The business may be okay, but the evidence does not yet show a durable moat or high returns on capital.

In plain English: Enhabit provides home health and hospice care through nurses, therapists and aides in the U.S. The business is growing slowly and its trailing earnings are negative, though the latest reported quarter was profitable and it generates significant cash. At $13.80, the stock looks roughly fair rather than clearly cheap or expensive based on the numbers given.

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Data as of 2026-05-14 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer