MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MOH - US60855R1005 - Common Stock
198.914 USD
+0.16 (+0.08%)
MOH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- MOH had positive earnings in the past year.
- MOH had a negative operating cash flow in the past year.
- Each year in the past 5 years MOH has been profitable.
- In the past 5 years MOH always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 5.62%, MOH belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
- MOH has a better Return On Equity (21.07%) than 88.24% of its industry peers.
- MOH has a Return On Invested Capital of 11.98%. This is amongst the best in the industry. MOH outperforms 86.27% of its industry peers.
- MOH had an Average Return On Invested Capital over the past 3 years of 17.96%. This is significantly above the industry average of 9.21%.
- The last Return On Invested Capital (11.98%) for MOH is well below the 3 year average (17.96%), which needs to be investigated, but indicates that MOH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 21.07% | ||
| ROIC | 11.98% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.96%
ROIC(5y)17.65%
1.3 Margins
- With a decent Profit Margin value of 1.98%, MOH is doing good in the industry, outperforming 61.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of MOH has declined.
- MOH has a Operating Margin (2.97%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of MOH has declined.
- MOH has a worse Gross Margin (13.91%) than 65.69% of its industry peers.
- In the last couple of years the Gross Margin of MOH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | 1.98% | ||
| GM | 13.91% |
OM growth 3Y1.53%
OM growth 5Y-7.6%
PM growth 3Y6.92%
PM growth 5Y-7.91%
GM growth 3Y1.48%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MOH is creating value.
- MOH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MOH has less shares outstanding
- MOH has a worse debt/assets ratio than last year.
2.2 Solvency
- MOH has an Altman-Z score of 4.37. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
- MOH has a Altman-Z score of 4.37. This is in the better half of the industry: MOH outperforms 77.45% of its industry peers.
- MOH has a Debt/Equity ratio of 0.92. This is a neutral value indicating MOH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.92, MOH perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.37 |
ROIC/WACC1.42
WACC8.45%
2.3 Liquidity
- A Current Ratio of 1.68 indicates that MOH should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.68, MOH is doing good in the industry, outperforming 65.69% of the companies in the same industry.
- MOH has a Quick Ratio of 1.68. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
- MOH's Quick ratio of 1.68 is fine compared to the rest of the industry. MOH outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The earnings per share for MOH have decreased strongly by -16.06% in the last year.
- The Earnings Per Share has been growing by 14.16% on average over the past years. This is quite good.
- The Revenue has grown by 13.65% in the past year. This is quite good.
- The Revenue has been growing by 19.29% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.06%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-69.38%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%11%
3.2 Future
- The Earnings Per Share is expected to grow by 5.04% on average over the next years.
- Based on estimates for the next years, MOH will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y-36.42%
EPS Next 2Y-22.26%
EPS Next 3Y-10.35%
EPS Next 5Y5.04%
Revenue Next Year10.59%
Revenue Next 2Y7.26%
Revenue Next 3Y7.1%
Revenue Next 5Y6.09%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.78 indicates a reasonable valuation of MOH.
- MOH's Price/Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 90.20% of the companies in the same industry.
- MOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 14.53, MOH is valued correctly.
- Based on the Price/Forward Earnings ratio, MOH is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of MOH to the average of the S&P500 Index (24.32), we can say MOH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than MOH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.92 |
4.3 Compensation for Growth
- The decent profitability rating of MOH may justify a higher PE ratio.
- MOH's earnings are expected to decrease with -10.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-22.26%
EPS Next 3Y-10.35%
5. Dividend
5.1 Amount
- MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MOLINA HEALTHCARE INC / MOH FAQ
Can you provide the ChartMill fundamental rating for MOLINA HEALTHCARE INC?
ChartMill assigns a fundamental rating of 5 / 10 to MOH.
What is the valuation status of MOLINA HEALTHCARE INC (MOH) stock?
ChartMill assigns a valuation rating of 5 / 10 to MOLINA HEALTHCARE INC (MOH). This can be considered as Fairly Valued.
How profitable is MOLINA HEALTHCARE INC (MOH) stock?
MOLINA HEALTHCARE INC (MOH) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MOH stock?
The Price/Earnings (PE) ratio for MOLINA HEALTHCARE INC (MOH) is 10.78 and the Price/Book (PB) ratio is 2.44.