Is Encompass Health Corp (EHC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 25.2% / 30% | 0.7% / 30% | 5.8% / 30% | 0.39% / 5% | ✓ HALAL |
| DJIM | 25.2% / 33% | 0.7% / 33% | 5.8% / 33% | 0.39% / 5% | ✓ HALAL |
| MSCI | 38.3% / 33% | 1.0% / 33% | 8.7% / 33% | 0.39% / 5% | ✗ NOT HALAL |
| S&P | 25.2% / 33% | 0.7% / 33% | 5.8% / 33% | 0.39% / 5% | ✓ HALAL |
| FTSE | 38.3% / 33% | 1.0% / 33% | 8.7% / 50% | 0.39% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 43.2% | |
| Operating Margin | 18.3% | |
| Net Margin | 9.5% | |
| Return on Equity (ROE) | 24.8% | |
| Return on Assets (ROA) | 9.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.2B |
| Free Cash Flow | $439M |
| Total Debt | $2.7B |
| Debt-to-Equity | 82.8 |
| Current Ratio | 1.1 |
| Total Assets | $7.1B |
Price & Trading
| Last Close | $97.74 |
| 50-Day MA | $102.44 |
| 200-Day MA | $113.33 |
| Avg Volume | 1.2M |
| Beta | 0.6 |
|
52-Week Range
$92.77
| |
About Encompass Health Corp (EHC)
Encompass Health Corporation operates inpatient rehabilitation hospitals in the United States and Puerto Rico. The company offers specialized rehabilitative treatment, using technology and therapy, on an inpatient basis for patients recovering from a major injury or illness and seeking to regain functional ability, independence, and quality of life; medical, nursing, therapy, and ancillary services; and rehabilitative care to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. It offers services through the Medicare program to the federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. Encompass Health Corporation was incorporated in 1984 and is based in Birmingham, Alabama.
Purification Calculator
As a halal stock with 0.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Encompass Health Corp (EHC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Encompass Health Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Encompass Health Corp's debt ratio?
Encompass Health Corp's debt ratio is 25.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 38.3%.
Does Encompass Health Corp require dividend purification?
Yes, Encompass Health Corp has an impermissible income ratio of 0.39%, which means 0.39% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Encompass Health Corp's key financial metrics?
Encompass Health Corp has a market capitalization of $9.8B, trailing P/E ratio of 17.6, and revenue of $5.9B. The company maintains a gross margin of 43.2% and a net margin of 9.5%. Return on equity stands at 24.8%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.