Enhabit, Inc (EHAB) AI Stock Analysis

• Market Cap: $399.30M
• Dividend Yield: N/A
• Average Volume (3M): 406.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -1.10%
• EPS Growth: -92.56%
• Country: US
• Employees: 10,700
• Sector: Healthcare
• Sector Strength: 70
• Industry: Medical - Care Facilities
• EPS (TTM): -3.11
• Shares Outstanding: 50,479,950
• 10 Day Avg. Volume: 336,696
• 30 Day Avg. Volume: 406,943
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.44
• Price to Cash Flow (P/CF): -27.90
• P/FCF Ratio: 17.30
• 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: $9.00
• Price Target Upside: 13.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Enhabit, Inc. faces significant financial challenges, including declining revenue and negative profit margins, which weigh heavily on the overall score. However, the company has shown some technical strength and potential for strategic improvements, particularly in the hospice segment and with effective cost management. The appointment of an experienced industry leader to the board is a positive corporate development. Despite these positives, valuation concerns due to negative earnings persist, resulting in a moderate overall stock score.

Positive Factors

Payer Strategy

Enhabit, Inc continues to advance its payer innovation strategy with 48% of non-Medicare visits now contracted at improved rates.

Revenue Growth

The updated model reflects an improved outlook with an estimated 11% revenue growth year-to-year and margin expansion in the Hospice segment.

Negative Factors

Branch Closures

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

Home Health Performance

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. (EHAB) is a leading provider of home health and hospice care services in the United States. The company operates within the healthcare sector, focusing on delivering personalized care to patients in the comfort of their homes. Enhabit offers a range of services, including skilled nursing, physical therapy, occupational therapy, speech therapy, and medical social work. The company's mission is to enhance the quality of life for its patients through compassionate care and innovative healthcare solutions.

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: Negative
• Last Price: 7.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHAB, the sentiment is Negative. The current price of 7.91 is below the 20-day moving average (MA) of 8.62, below the 50-day MA of 8.50, and below the 200-day MA of 8.23, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 15.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EHAB.

Enhabit, Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCA	73 Outperform	$83.35B	15.39	-230.22%	0.80%	8.67%	15.32%
EHC	72 Outperform	$10.42B	23.14	24.52%	0.62%	11.91%	28.47%
CHE	70 Outperform	$8.63B	29.69	27.12%	0.32%	7.37%	11.17%
AMED	65 Neutral	$3.00B	70.28	3.93%	―	5.01%	―
ADUS	64 Neutral	$1.84B	24.03	8.78%	―	9.06%	10.68%
EHAB	56 Neutral	$399.30M	―	-26.18%	―	-1.10%	-92.56%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%

Enhabit, Inc Corporate Events

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.