HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
NYSE:HCA - New York Stock Exchange, Inc. - US40412C1018 - Common Stock - Currency: USD
Overall HCA gets a fundamental rating of 6 out of 10. We evaluated HCA against 109 industry peers in the Health Care Providers & Services industry. HCA has an excellent profitability rating, but there are 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.
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 (9.68%) than 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.69%, HCA belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
HCA had an Average Return On Invested Capital over the past 3 years of 17.59%. This is significantly above the industry average of 8.15%.
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
HCA has a Profit Margin of 8.16%. This is amongst the best in the industry. HCA outperforms 89.81% of its industry peers.
In the last couple of years the Profit Margin of HCA has grown nicely.
HCA has a Operating Margin of 14.94%. This is amongst the best in the industry. HCA outperforms 90.74% 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 84.77%. This is amongst the best in the industry. HCA outperforms 97.22% 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 | 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
HCA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HCA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HCA has been reduced compared to 5 years ago.
HCA has a worse debt/assets ratio than last year.
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.
With a decent Debt to FCF ratio value of 7.63, HCA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | N/A |
ROIC/WACC2.54
WACC7.35%
2.3 Liquidity
HCA has a Current Ratio of 1.08. 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 1.08, HCA is doing worse than 74.07% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that HCA may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, HCA is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| 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.
HCA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.67%.
HCA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.58% yearly.
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
The Earnings Per Share is expected to grow by 12.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y12.94%
EPS Next 2Y12.53%
EPS Next 3Y12.44%
EPS Next 5Y12.39%
Revenue Next Year6.03%
Revenue Next 2Y5.7%
Revenue Next 3Y6.14%
Revenue Next 5Y5.95%
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 14.86.
Compared to the rest of the industry, the Price/Earnings ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 81.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HCA to the average of the S&P500 Index (28.42), we can say HCA is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.16, which indicates a correct valuation of HCA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 81.48% of the companies listed in the same industry.
HCA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCA is valued cheaper than 80.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCA is valued cheaper than 84.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as HCA's earnings are expected to grow with 12.44% in the coming years.
PEG (NY)1.15
PEG (5Y)0.92
EPS Next 2Y12.53%
EPS Next 3Y12.44%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 2.85, HCA pays a better dividend. On top of this HCA pays more dividend than 81.48% of the companies listed in the same industry.
With a Dividend Yield of 0.92, HCA pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
11.98% of the earnings are spent on dividend by HCA. This is a low number and 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 2Y12.53%
EPS Next 3Y12.44%
HCA HEALTHCARE INC
NYSE:HCA (1/28/2025, 8:04:00 PM)
After market: 328.7 0 (0%)328.7
-3.3 (-0.99%)
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 Change0.17%
Ins Owners1.17%
Ins Owner Change-0.07%
Market Cap83.26B
Analysts80
Price Target408.33 (24.23%)
Short Float %2.43%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.66
Dividend Growth(5Y)10.49%
DP11.98%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-1.72%
PT rev (3m)-2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.16 | ||
| P/S | 1.18 | ||
| P/FCF | 14.77 | ||
| P/OCF | 7.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.03 |
EPS(TTM)22.12
EY6.73%
EPS(NY)24.98
Fwd EY7.6%
FCF(TTM)22.26
FCFY6.77%
OCF(TTM)41.51
OCFY12.63%
SpS278.73
BVpS-9.87
TBVpS-49.71
PEG (NY)1.15
PEG (5Y)0.92
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
WACC7.35%
ROIC/WACC2.54
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 Y12.94%
EPS Next 2Y12.53%
EPS Next 3Y12.44%
EPS Next 5Y12.39%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%5.68%
Revenue Next Year6.03%
Revenue Next 2Y5.7%
Revenue Next 3Y6.14%
Revenue Next 5Y5.95%
EBIT growth 1Y9.56%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year39.05%
EBIT Next 3Y16.07%
EBIT Next 5Y11.89%
FCF growth 1Y20.31%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y11.48%
OCF growth 3Y5.48%
OCF growth 5Y6.7%