Encompass Health Corporation (EHC) exhibits 41.0% gross margins and 13.8% return on invested capital within Health Care (Hospital/Nursing Management), balanced against a 15.8x enterprise multiple and 6.6% implied options volatility.
Sustained 41.0% gross profitability converts into 11.6% operating margin and 13.8% ROIC, outpacing sector cost of capital.
ROIC: 13.8% // GM: 41.0%YoY revenue trajectory of +10.5% paired with 2.92% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +10.5% // FCF YLD: 2.92%Altman Z-Score of 3.47 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.47 // F-SCORE: 9/9Trading at 22.9x trailing P/E (21.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 22.9x // EV/EBITDA: 15.8xOptions market prices a ±6.6% implied move with a 0.54 put/call ratio around $129.00 max pain.
IMPL MOVE: ±6.6% // P/C: 0.54Elevated industry capital intensity and customer concentration in Hospital/Nursing Management require continuous execution to defend 9.5% net margins.
NET MARGIN: 9.5% // D/E: 0.66x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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