* Note: Prices are in Million (M) USD.
Description:
Enhabit, Inc. provides home health and hospice services in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $28 M
Debt : $570 M
EBITDA : $80 M
Net Debt (Debt - Cash): $541 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Health Care
Industry: Medical Care Facilities
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.37
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $59 M
Average Revenue: $1,074 M
Revenue Converted To Free Cash FLow(%): 5%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 65.32%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,035 M
Revenue 4 Years Ago (2020-12-31): $1,078 M
Last 5 Years Average Revenue Growth: -1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $50 M
Share Count 5 Years Ago (2020-12-31): $4 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.37
Trailing 12-Month Earnings Per Share (EPS): $0.34
Average Earnings Per Share (EPS): $0.36
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -7%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $7
52-Week Low: $7
Threshold Price (15% Above 52-Week Low): $7
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $342 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above Enhabit Inc. (EHAB) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 20, Fair Value PE 12 and Industry Based PE is 15. Based on these three values average assigned is 15.67.
Value-Trades has assined P/E value 15.67. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.355.
The fair value of Enhabit Inc. (EHAB) stock should be (15.67 x $0.355) = $5.56