📊 EHAB Key Takeaways
Is Enhabit, Inc. (EHAB) a Good Investment?
Enhabit exhibits severe operational deterioration with net income collapsing 76.9% YoY despite flat revenue growth, signaling acute margin compression in its home health care business. Minimal returns on capital (ROE 3.5%, ROA 1.6%) combined with weakening interest coverage (2.6x) leave insufficient buffer for further earnings decline, while data quality concerns regarding gross margin reporting add uncertainty.
Enhabit shows modest top-line growth and solid cash generation, with positive free cash flow and adequate liquidity supporting near-term financial stability. However, profitability remains weak, with a net loss, very thin operating margins, and low interest coverage indicating limited cushion if reimbursement, labor, or operating costs worsen. The fundamentals support a cautious stance: the business is stabilizing, but the quality of earnings is not yet strong enough to justify a more bullish rating.
Enhabit, Inc. Key Strengths (EHAB)
- Operating cash flow of $35.2M exceeds reported net income, suggesting earnings quality resilience despite profitability decline
- Positive free cash flow generation of $32.7M (12.3% margin) provides near-term liquidity buffer
- Moderate leverage at 0.73x debt-to-equity and adequate current ratio of 1.56x
- Positive operating cash flow and free cash flow despite net losses
- Adequate liquidity with a 1.63x current and quick ratio
- Revenue growth remains positive and gross margin is healthy at 39.2%
EHAB Stock Risks: Enhabit, Inc. Investment Risks
- Catastrophic 76.9% YoY net income decline while revenue grew only 2.4% indicates structural margin compression
- Abnormally high gross margin (157%) raises data quality concerns and obscures true cost structure visibility
- Critically weak interest coverage of 2.6x with deteriorating profitability creates elevated default risk; limited operational cushion
- Operating margin of 1.5% leaves little room for execution or reimbursement pressure
- Net income remains negative, indicating incomplete profitability recovery
- Interest coverage of 1.5x suggests elevated debt-servicing risk if earnings weaken
Key Metrics to Watch
- Operating margin trajectory (11.1% current level at risk from revenue-NI divergence)
- Interest coverage ratio sustainability with further margin compression
- Free cash flow sustainability and capital allocation decisions amid profitability decline
- Operating margin and interest coverage
- Free cash flow conversion versus net income
Enhabit, Inc. (EHAB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Enhabit, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EHAB Profit Margin, ROE & Profitability Analysis
EHAB vs Services Sector: How Enhabit, Inc. Compares
How Enhabit, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Enhabit, Inc. Stock Overvalued? EHAB Valuation Analysis 2026
Based on fundamental analysis, Enhabit, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Enhabit, Inc. Balance Sheet: EHAB Debt, Cash & Liquidity
EHAB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Enhabit, Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $-1.61 indicates the company is currently unprofitable.
EHAB Revenue Growth, EPS Growth & YoY Performance
EHAB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $259.9M | $17.8M | $0.35 |
| Q3 2025 | $253.6M | $11.1M | $0.22 |
| Q2 2025 | $260.6M | N/A | $0.00 |
| Q1 2025 | $259.9M | $200.0K | $0.01 |
| Q3 2024 | $253.6M | -$2.4M | $-0.05 |
| Q2 2024 | $260.6M | N/A | $0.00 |
| Q1 2024 | $262.4M | $200.0K | $0.01 |
| Q3 2023 | $258.3M | -$2.4M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Enhabit, Inc. Dividends, Buybacks & Capital Allocation
EHAB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Enhabit, Inc. (CIK: 0001803737)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778863358.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778863297.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778863241.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778863185.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778863002.xml | View → |
❓ Frequently Asked Questions about EHAB
What is the AI rating for EHAB?
Enhabit, Inc. (EHAB) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EHAB's key strengths?
Claude: Operating cash flow of $35.2M exceeds reported net income, suggesting earnings quality resilience despite profitability decline. Positive free cash flow generation of $32.7M (12.3% margin) provides near-term liquidity buffer. ChatGPT: Positive operating cash flow and free cash flow despite net losses. Adequate liquidity with a 1.63x current and quick ratio.
What are the risks of investing in EHAB?
Claude: Catastrophic 76.9% YoY net income decline while revenue grew only 2.4% indicates structural margin compression. Abnormally high gross margin (157%) raises data quality concerns and obscures true cost structure visibility. ChatGPT: Operating margin of 1.5% leaves little room for execution or reimbursement pressure. Net income remains negative, indicating incomplete profitability recovery.
What is EHAB's revenue and growth?
Enhabit, Inc. reported revenue of $264.8M.
Does EHAB pay dividends?
Enhabit, Inc. does not currently pay dividends.
Where can I find EHAB SEC filings?
Official SEC filings for Enhabit, Inc. (CIK: 0001803737) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EHAB's EPS?
Enhabit, Inc. has a diluted EPS of $0.36.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EHAB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Enhabit, Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EHAB stock overvalued or undervalued?
Valuation metrics for EHAB: ROE of 3.5% (sector avg: 16%), net margin of 7.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is EHAB's AI grade for 2026?
Our dual AI analysis gives Enhabit, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EHAB's free cash flow?
Enhabit, Inc.'s operating cash flow is $35.2M, with capital expenditures of $2.5M. FCF margin is 12.3%.
How does EHAB compare to other Services stocks?
Vs Services sector averages: Net margin 7.3% (avg: 10%), ROE 3.5% (avg: 16%), current ratio 1.56 (avg: 1.5).