HCA HEALTHCARE INC (HCA)
US40412C1018 - Common Stock
Taking everything into account, HCA scores 6 out of 10 in our fundamental rating. HCA was compared to 113 industry peers in the Health Care Providers & Services industry. While HCA has a great profitability rating, there are some minor concerns on its financial health. HCA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
HCA had positive earnings in the past year.
In the past year HCA had a positive cash flow from operations.
In the past 5 years HCA has always been profitable.
HCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HCA has a better Return On Assets (9.97%) than 94.69% of its industry peers.
HCA has a Return On Invested Capital of 18.70%. This is amongst the best in the industry. HCA outperforms 93.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 8.10%.
The 3 year average ROIC (17.69%) for HCA is below the current ROIC(18.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | N/A | ||
| ROIC | 18.7% |
ROA(3y)11.27%
ROA(5y)9.9%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.69%
ROIC(5y)16.66%
1.3 Margins
Looking at the Profit Margin, with a value of 8.52%, HCA belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
In the last couple of years the Profit Margin of HCA has remained more or less at the same level.
HCA has a better Operating Margin (15.08%) than 92.92% of its industry peers.
In the last couple of years the Operating Margin of HCA has remained more or less at the same level.
HCA has a Gross Margin of 84.85%. This is amongst the best in the industry. HCA outperforms 97.35% of its industry peers.
HCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.08% | ||
| PM (TTM) | 8.52% | ||
| GM | 84.85% |
OM growth 3Y1.69%
OM growth 5Y0.81%
PM growth 3Y3.47%
PM growth 5Y-0.11%
GM growth 3Y0.4%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
HCA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for HCA has been reduced compared to 1 year ago.
HCA has less shares outstanding than it did 5 years ago.
HCA has a better debt/assets ratio than last year.
2.2 Solvency
HCA has an Altman-Z score of 2.57. This is not the best score and indicates that HCA is in the grey zone with still only limited risk for bankruptcy at the moment.
HCA has a Altman-Z score of 2.57. This is in the better half of the industry: HCA outperforms 64.60% of its industry peers.
The Debt to FCF ratio of HCA is 7.31, which is on the high side as it means it would take HCA, 7.31 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.31, HCA is doing good in the industry, outperforming 72.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 2.57 |
ROIC/WACC2.52
WACC7.41%
2.3 Liquidity
HCA has a Current Ratio of 1.12. This is a normal value and indicates that HCA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, HCA is doing worse than 69.91% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that HCA may have some problems paying its short term obligations.
HCA's Quick ratio of 1.00 is on the low side compared to the rest of the industry. HCA is outperformed by 68.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.07% over the past year.
HCA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.82% yearly.
Looking at the last year, HCA shows a quite strong growth in Revenue. The Revenue has grown by 10.23% in the last year.
HCA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)29.07%
EPS 3Y23.61%
EPS 5Y13.82%
EPS Q2Q%28.64%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y8.03%
Revenue growth 5Y6.84%
Sales Q2Q%7.86%
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 10.65% on average per year.
HCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.88% yearly.
EPS Next Y18.83%
EPS Next 2Y15.44%
EPS Next 3Y13.94%
EPS Next 5Y10.65%
Revenue Next Year10.06%
Revenue Next 2Y8.08%
Revenue Next 3Y7.04%
Revenue Next 5Y5.88%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 14.53, the valuation of HCA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 84.96% of the companies listed in the same industry.
HCA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of HCA.
Based on the Price/Forward Earnings ratio, HCA is valued cheaply inside the industry as 83.19% of the companies are valued more expensively.
HCA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 80.53% 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 84.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
HCA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HCA has an outstanding profitability rating, which may justify a higher PE ratio.
HCA's earnings are expected to grow with 13.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)1.05
EPS Next 2Y15.44%
EPS Next 3Y13.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, HCA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.16, HCA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, HCA pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of HCA grows each year by 11.63%, which is quite nice.
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)11.63%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HCA pays out 11.55% of its income as dividend. This is a sustainable payout ratio.
HCA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.55%
EPS Next 2Y15.44%
EPS Next 3Y13.94%
HCA HEALTHCARE INC
NYSE:HCA (11/22/2024, 10:26:56 AM)
325.82
-6.42 (-1.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap82.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 13.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.77
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.08% | ||
| PM (TTM) | 8.52% | ||
| GM | 84.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.07%
EPS 3Y23.61%
EPS 5Y
EPS Q2Q%
EPS Next Y18.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.23%
Revenue growth 3Y8.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y