Don't overlook NYSE:HCA—it's a hidden gem with strong fundamentals and an attractive price tag.

Discover HCA HEALTHCARE INC (NYSE:HCA)—an undervalued stock our stock screener has picked out. NYSE:HCA demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Assessment of NYSE:HCA

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:HCA, the assigned 7 reflects its valuation:

• 80.87% of the companies in the same industry are more expensive than HCA, based on the Price/Earnings ratio.
• HCA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.27.
• 80.87% of the companies in the same industry are more expensive than HCA, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.18, HCA is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, HCA is valued a bit cheaper than the industry average as 79.13% of the companies are valued more expensively.
• HCA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCA is cheaper than 84.35% of the companies in the same industry.
• HCA has an outstanding profitability rating, which may justify a higher PE ratio.

Exploring NYSE:HCA's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:HCA, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 9.60%, HCA belongs to the top of the industry, outperforming 94.78% of the companies in the same industry.
• HCA has a Return On Invested Capital of 17.66%. This is amongst the best in the industry. HCA outperforms 96.52% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HCA is significantly above the industry average of 8.77%.
• HCA's Profit Margin of 8.20% is amongst the best of the industry. HCA outperforms 91.30% of its industry peers.
• The Operating Margin of HCA (14.62%) is better than 94.78% of its industry peers.
• The Gross Margin of HCA (84.79%) is better than 98.26% of its industry peers.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HCA was assigned a score of 5 for health:

• HCA has a better Altman-Z score (2.61) than 65.22% of its industry peers.
• HCA has a better Debt to FCF ratio (7.40) than 67.83% of its industry peers.

Deciphering NYSE:HCA's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HCA has earned a 5 for growth:

• The Earnings Per Share has grown by an nice 15.89% over the past year.
• The Earnings Per Share has been growing by 13.82% on average over the past years. This is quite good.
• Looking at the last year, HCA shows a quite strong growth in Revenue. The Revenue has grown by 9.59% in the last year.
• HCA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.65% yearly.

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Our latest full fundamental report of HCA contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.