HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
NYSE:HCA - New York Stock Exchange, Inc. - US40412C1018 - Common Stock - Currency: USD
Taking everything into account, HCA scores 6 out of 10 in our fundamental rating. HCA was compared to 108 industry peers in the Health Care Providers & Services industry. While HCA has a great profitability rating, there are quite some concerns on its financial health. HCA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HCA had positive earnings in the past year.
HCA had a positive operating cash flow in the past year.
Each year in the past 5 years HCA has been profitable.
In the past 5 years HCA always reported a positive cash flow from operatings.
1.2 Ratios
HCA's Return On Assets of 9.68% is amongst the best of the industry. HCA outperforms 93.46% of its industry peers.
With an excellent Return On Invested Capital value of 18.69%, HCA belongs to the best of the industry, outperforming 95.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 8.16%.
The last Return On Invested Capital (18.69%) for HCA is above the 3 year average (17.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | N/A | ||
| ROIC | 18.69% |
ROA(3y)9.92%
ROA(5y)10.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.59%
ROIC(5y)17.19%
1.3 Margins
With an excellent Profit Margin value of 8.16%, HCA belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
HCA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.94%, HCA belongs to the top of the industry, outperforming 89.72% of the companies in the same industry.
In the last couple of years the Operating Margin of HCA has remained more or less at the same level.
HCA has a better Gross Margin (84.77%) than 96.26% of its industry peers.
HCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 8.16% | ||
| GM | 84.77% |
OM growth 3Y-3.21%
OM growth 5Y1.22%
PM growth 3Y-11.67%
PM growth 5Y3.63%
GM growth 3Y0.36%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCA is creating value.
HCA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HCA has less shares outstanding
Compared to 1 year ago, HCA has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HCA is 7.63, which is on the high side as it means it would take HCA, 7.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.63, HCA is in the better half of the industry, outperforming 64.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | N/A |
ROIC/WACC2.36
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.08 indicates that HCA should not have too much problems paying its short term obligations.
HCA's Current ratio of 1.08 is on the low side compared to the rest of the industry. HCA is outperformed by 74.77% of its industry peers.
A Quick Ratio of 0.97 indicates that HCA may have some problems paying its short term obligations.
The Quick ratio of HCA (0.97) is worse than 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
HCA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.54%, which is quite good.
The Earnings Per Share has been growing by 16.07% 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 8.67% in the last year.
Measured over the past years, HCA shows a small growth in Revenue. The Revenue has been growing by 6.58% on average per year.
EPS 1Y (TTM)18.54%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%-5.06%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%5.68%
3.2 Future
Based on estimates for the next years, HCA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.13% on average per year.
Based on estimates for the next years, HCA will show a small growth in Revenue. The Revenue will grow by 5.90% on average per year.
EPS Next Y13.64%
EPS Next 2Y13.25%
EPS Next 3Y12.7%
EPS Next 5Y12.13%
Revenue Next Year5.87%
Revenue Next 2Y5.51%
Revenue Next 3Y5.43%
Revenue Next 5Y5.9%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HCA is valuated correctly with a Price/Earnings ratio of 13.65.
Based on the Price/Earnings ratio, HCA is valued cheaply inside the industry as 81.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HCA to the average of the S&P500 Index (29.01), we can say HCA is valued rather cheaply.
A Price/Forward Earnings ratio of 12.01 indicates a correct valuation of HCA.
Based on the Price/Forward Earnings ratio, HCA is valued cheaper than 83.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HCA to the average of the S&P500 Index (22.40), we can say HCA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCA indicates a somewhat cheap valuation: HCA is cheaper than 79.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 81.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
HCA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HCA may justify a higher PE ratio.
HCA's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)0.85
EPS Next 2Y13.25%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.96, HCA pays a better dividend. On top of this HCA pays more dividend than 80.37% of the companies listed in the same industry.
With a Dividend Yield of 0.90, HCA pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of HCA is nicely growing with an annual growth rate of 10.49%!
HCA has been paying a dividend for over 5 years, so it has already some track record.
HCA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.49%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
HCA pays out 11.98% of its income as dividend. This is a sustainable payout ratio.
The dividend of HCA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP11.98%
EPS Next 2Y13.25%
EPS Next 3Y12.7%
NYSE:HCA (2/28/2025, 2:42:09 PM)
301.915
-19.02 (-5.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.22%
Inst Owner Change0.66%
Ins Owners1.22%
Ins Owner Change0.01%
Market Cap76.48B
Analysts79.33
Price Target384.65 (27.4%)
Short Float %2.94%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.66
Dividend Growth(5Y)10.49%
DP11.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.56%
Min EPS beat(2)-8.93%
Max EPS beat(2)-0.18%
EPS beat(4)2
Avg EPS beat(4)5.36%
Min EPS beat(4)-8.93%
Max EPS beat(4)17.74%
EPS beat(8)5
Avg EPS beat(8)6.18%
EPS beat(12)7
Avg EPS beat(12)4.54%
EPS beat(16)10
Avg EPS beat(16)7.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)2.31%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)7
Avg Revenue beat(12)0.49%
Revenue beat(16)10
Avg Revenue beat(16)0.86%
PT rev (1m)-5.8%
PT rev (3m)-8.15%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)1.52%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.01 | ||
| P/S | 1.08 | ||
| P/FCF | 13.56 | ||
| P/OCF | 7.27 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.83 |
EPS(TTM)22.12
EY7.33%
EPS(NY)25.14
Fwd EY8.33%
FCF(TTM)22.26
FCFY7.37%
OCF(TTM)41.51
OCFY13.75%
SpS278.73
BVpS-9.87
TBVpS-49.71
PEG (NY)1
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | N/A | ||
| ROCE | 23.79% | ||
| ROIC | 18.69% | ||
| ROICexc | 19.54% | ||
| ROICexgc | 25.65% | ||
| OM | 14.94% | ||
| PM (TTM) | 8.16% | ||
| GM | 84.77% | ||
| FCFM | 7.99% |
ROA(3y)9.92%
ROA(5y)10.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.59%
ROIC(5y)17.19%
ROICexc(3y)18.13%
ROICexc(5y)17.79%
ROICexgc(3y)23.68%
ROICexgc(5y)23.27%
ROCE(3y)22.39%
ROCE(5y)21.88%
ROICexcg growth 3Y0.58%
ROICexcg growth 5Y5.14%
ROICexc growth 3Y0.68%
ROICexc growth 5Y4.8%
OM growth 3Y-3.21%
OM growth 5Y1.22%
PM growth 3Y-11.67%
PM growth 5Y3.63%
GM growth 3Y0.36%
GM growth 5Y0.31%
F-Score8
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 147.19% | ||
| Cap/Sales | 6.9% | ||
| Interest Coverage | 5.44 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 97.9% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score8
WACC7.92%
ROIC/WACC2.36
Cap/Depr(3y)149.8%
Cap/Depr(5y)135.79%
Cap/Sales(3y)7.17%
Cap/Sales(5y)6.62%
Profit Quality(3y)86.82%
Profit Quality(5y)101.65%
High Growth Momentum
Growth
EPS 1Y (TTM)18.54%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%-5.06%
EPS Next Y13.64%
EPS Next 2Y13.25%
EPS Next 3Y12.7%
EPS Next 5Y12.13%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%5.68%
Revenue Next Year5.87%
Revenue Next 2Y5.51%
Revenue Next 3Y5.43%
Revenue Next 5Y5.9%
EBIT growth 1Y9.56%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year39.14%
EBIT Next 3Y15.45%
EBIT Next 5Y11.5%
FCF growth 1Y20.31%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y11.48%
OCF growth 3Y5.48%
OCF growth 5Y6.7%