NYSE:MOH, an undervalued stock with good fundamentals.

Our stock screening tool has pinpointed MOLINA HEALTHCARE INC (NYSE:MOH) as an undervalued stock. NYSE:MOH maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Exploring NYSE:MOH's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:MOH scores a 8 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of MOH indicates a rather cheap valuation: MOH is cheaper than 87.72% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of MOH to the average of the S&P500 Index (29.15), we can say MOH is valued rather cheaply.
• With a Price/Forward Earnings ratio of 11.01, the valuation of MOH can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, MOH is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
• MOH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.79, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaply inside the industry as 99.12% of the companies are valued more expensively.
• MOH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MOH is cheaper than 82.46% of the companies in the same industry.
• The decent profitability rating of MOH may justify a higher PE ratio.
• A more expensive valuation may be justified as MOH's earnings are expected to grow with 13.80% in the coming years.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MOH, the assigned 6 is a significant indicator of profitability:

• MOH's Return On Assets of 6.90% is amongst the best of the industry. MOH outperforms 89.47% of its industry peers.
• MOH's Return On Equity of 23.84% is amongst the best of the industry. MOH outperforms 92.11% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 17.24%, MOH belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for MOH is significantly above the industry average of 8.74%.
• MOH's Profit Margin of 2.99% is fine compared to the rest of the industry. MOH outperforms 74.56% of its industry peers.
• Looking at the Operating Margin, with a value of 4.52%, MOH is in the better half of the industry, outperforming 62.28% of the companies in the same industry.

Understanding NYSE:MOH's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MOH has received a 7 out of 10:

• An Altman-Z score of 4.31 indicates that MOH is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.31, MOH belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• MOH has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as MOH would need 2.70 years to pay back of all of its debts.
• MOH has a Debt to FCF ratio of 2.70. This is amongst the best in the industry. MOH outperforms 85.09% of its industry peers.
• The Debt to Equity ratio of MOH (0.53) is better than 60.53% of its industry peers.
• MOH has a better Quick ratio (1.49) than 60.53% of its industry peers.

Deciphering NYSE:MOH's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:MOH, the assigned 6 reflects its growth potential:

• The Earnings Per Share has grown by an nice 10.57% over the past year.
• The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
• The Revenue has grown by 10.82% in the past year. This is quite good.
• MOH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.52% yearly.
• MOH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.80% yearly.
• MOH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of MOH for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.