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 108 industry peers in the Health Care Providers & Services industry. While HCA belongs to the best of the industry regarding profitability, there are some minor 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
In the past year HCA was profitable.
In the past year HCA had a positive cash flow from operations.
Each year in the past 5 years HCA has 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 94.39% of its industry peers.
The Return On Invested Capital of HCA (18.70%) is better than 94.39% of its industry peers.
HCA had an Average Return On Invested Capital over the past 3 years of 17.69%. This is significantly above the industry average of 8.15%.
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
HCA's Profit Margin of 8.52% is amongst the best of the industry. HCA outperforms 90.65% of its industry peers.
In the last couple of years the Profit Margin of HCA has remained more or less at the same level.
The Operating Margin of HCA (15.08%) is better than 91.59% 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 better Gross Margin (84.85%) than 97.20% of its industry peers.
In the last couple of years the Gross Margin of HCA has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCA is creating value.
Compared to 1 year ago, HCA has less shares outstanding
The number of shares outstanding for HCA has been reduced compared to 5 years ago.
The debt/assets ratio for HCA has been reduced compared to a year ago.
2.2 Solvency
HCA has an Altman-Z score of 2.50. 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.
Looking at the Altman-Z score, with a value of 2.50, HCA is in the better half of the industry, outperforming 60.75% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 7.31, HCA is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 2.5 |
ROIC/WACC2.52
WACC7.43%
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.
HCA has a Current ratio of 1.12. This is in the lower half of the industry: HCA underperforms 70.09% of its industry peers.
HCA has a Quick Ratio of 1.12. This is a bad value and indicates that HCA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HCA (1.00) is worse than 69.16% 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.
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 10.23% in the last year.
The Revenue has been growing slightly by 6.84% on average over the past years.
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 13.87% on average per year.
Based on estimates for the next years, HCA will show a small growth in Revenue. The Revenue will grow by 6.96% on average per year.
EPS Next Y18.29%
EPS Next 2Y15.2%
EPS Next 3Y13.89%
EPS Next 5Y13.87%
Revenue Next Year9.89%
Revenue Next 2Y7.95%
Revenue Next 3Y7.03%
Revenue Next 5Y6.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.50, 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 85.05% of the companies listed in the same industry.
HCA is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.23, which indicates a correct valuation of HCA.
84.11% of the companies in the same industry are more expensive than HCA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.99. HCA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.23 |
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 80.37% of the companies listed in the same industry.
HCA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCA is cheaper than 85.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.04 | ||
| EV/EBITDA | 8.53 |
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.
The excellent profitability rating of HCA may justify a higher PE ratio.
A more expensive valuation may be justified as HCA's earnings are expected to grow with 13.89% in the coming years.
PEG (NY)0.74
PEG (5Y)0.98
EPS Next 2Y15.2%
EPS Next 3Y13.89%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.89%, which is pretty low.
In the last 3 months the price of HCA has falen by -24.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HCA's Dividend Yield is rather good when compared to the industry average which is at 2.83. HCA pays more dividend than 80.37% of the companies in the same industry.
With a Dividend Yield of 0.89, HCA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of HCA is nicely growing with an annual growth rate of 11.63%!
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 Years4
Div Non Decr Years4
5.3 Sustainability
HCA pays out 11.55% of its income as dividend. This is a sustainable payout ratio.
HCA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP11.55%
EPS Next 2Y15.2%
EPS Next 3Y13.89%
HCA HEALTHCARE INC
NYSE:HCA (12/26/2024, 3:42:08 PM)
After market: 302.76 0 (0%)302.76
-1.86 (-0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners64.55%
Inst Owner Change-3.49%
Ins Owners1.17%
Ins Owner Change-0.07%
Market Cap76.69B
Analysts80.67
Price Target415.47 (37.23%)
Short Float %1.95%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Dividend Growth(5Y)11.63%
DP11.55%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.33%
Min EPS beat(2)-0.18%
Max EPS beat(2)12.83%
EPS beat(4)3
Avg EPS beat(4)11.59%
Min EPS beat(4)-0.18%
Max EPS beat(4)17.74%
EPS beat(8)5
Avg EPS beat(8)6.8%
EPS beat(12)7
Avg EPS beat(12)4.99%
EPS beat(16)11
Avg EPS beat(16)9.01%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)1.6%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)3.72%
Revenue beat(8)6
Avg Revenue beat(8)0.97%
Revenue beat(12)7
Avg Revenue beat(12)0.3%
Revenue beat(16)11
Avg Revenue beat(16)0.98%
PT rev (1m)-0.41%
PT rev (3m)4.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.23 | ||
| P/S | 1.1 | ||
| P/FCF | 13.04 | ||
| P/OCF | 7.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)22.42
EY7.41%
EPS(NY)24.76
Fwd EY8.18%
FCF(TTM)23.21
FCFY7.67%
OCF(TTM)41.96
OCFY13.86%
SpS274.86
BVpS-8.61
TBVpS-48.02
PEG (NY)0.74
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | N/A | ||
| ROCE | 23.57% | ||
| ROIC | 18.7% | ||
| ROICexc | 20% | ||
| ROICexgc | 26.3% | ||
| OM | 15.08% | ||
| PM (TTM) | 8.52% | ||
| GM | 84.85% | ||
| FCFM | 8.45% |
ROA(3y)11.27%
ROA(5y)9.9%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.69%
ROIC(5y)16.66%
ROICexc(3y)18.17%
ROICexc(5y)17.14%
ROICexgc(3y)23.77%
ROICexgc(5y)22.35%
ROCE(3y)22.3%
ROCE(5y)20.99%
ROICexcg growth 3Y4.85%
ROICexcg growth 5Y0.56%
ROICexc growth 3Y4.79%
ROICexc growth 5Y1.15%
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%
F-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.31 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 146.35% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 5.72 | ||
| Cash Conversion | 77.32% | ||
| Profit Quality | 99.17% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.5 |
F-Score7
WACC7.43%
ROIC/WACC2.52
Cap/Depr(3y)142.53%
Cap/Depr(5y)138.39%
Cap/Sales(3y)6.9%
Cap/Sales(5y)6.86%
Profit Quality(3y)79.97%
Profit Quality(5y)101.72%
High Growth Momentum
Growth
EPS 1Y (TTM)29.07%
EPS 3Y23.61%
EPS 5Y13.82%
EPS Q2Q%28.64%
EPS Next Y18.29%
EPS Next 2Y15.2%
EPS Next 3Y13.89%
EPS Next 5Y13.87%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y8.03%
Revenue growth 5Y6.84%
Sales Q2Q%7.86%
Revenue Next Year9.89%
Revenue Next 2Y7.95%
Revenue Next 3Y7.03%
Revenue Next 5Y6.96%
EBIT growth 1Y13.67%
EBIT growth 3Y9.85%
EBIT growth 5Y7.71%
EBIT Next Year47.83%
EBIT Next 3Y18.43%
EBIT Next 5Y13.41%
FCF growth 1Y40.87%
FCF growth 3Y-9.85%
FCF growth 5Y8.01%
OCF growth 1Y25.97%
OCF growth 3Y0.71%
OCF growth 5Y6.88%