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Encompass Health (NYSE:EHC) shares have climbed 15.7% to $124.41 over the past six months. This gain outpaced the S&P 500, which rose 13.5% during the same period.
The rehabilitation provider operates 161 specialized facilities across 37 states and Puerto Rico, treating patients recovering from conditions such as strokes and hip fractures.
Financial performance shows an expansion in free cash flow margin, which rose by 3.4 percentage points over the last five years. For the trailing 12 months, Encompass Health’s free cash flow margin stood at 12.6%.
This metric reflects actual cash available rather than accounting profits. Investors look to return on invested capital (ROIC) to gauge how efficiently a company uses its funding to generate operating profit.
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