MOLINA HEALTHCARE INC (MOH)
US60855R1005 - Common Stock
We assign a fundamental rating of 5 out of 10 to MOH. MOH was compared to 109 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of MOH get a neutral evaluation. Nothing too spectacular is happening here. MOH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MOH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MOH was profitable.
In the past year MOH had a positive cash flow from operations.
In the past 5 years MOH has always been profitable.
Each year in the past 5 years MOH had a positive operating cash flow.
1.2 Ratios
MOH has a better Return On Assets (7.26%) than 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 23.98%, MOH belongs to the top of the industry, outperforming 93.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.53%, MOH belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MOH is significantly above the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.98% | ||
| ROIC | 16.53% |
ROA(3y)6.39%
ROA(5y)7.41%
ROE(3y)25.89%
ROE(5y)29.47%
ROIC(3y)17.87%
ROIC(5y)18.84%
1.3 Margins
MOH has a better Profit Margin (2.92%) than 72.22% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
Looking at the Operating Margin, with a value of 4.20%, MOH is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
MOH's Operating Margin has declined in the last couple of years.
The Gross Margin of MOH (16.12%) is worse than 68.52% of its industry peers.
MOH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | 2.92% | ||
| GM | 16.12% |
OM growth 3Y-6.48%
OM growth 5Y-5.57%
PM growth 3Y-2.6%
PM growth 5Y-3.07%
GM growth 3Y-5.09%
GM growth 5Y-2.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MOH is creating value.
The number of shares outstanding for MOH remains at a similar level compared to 1 year ago.
MOH has less shares outstanding than it did 5 years ago.
MOH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.48 indicates that MOH is not in any danger for bankruptcy at the moment.
MOH has a Altman-Z score of 4.48. This is amongst the best in the industry. MOH outperforms 85.19% of its industry peers.
MOH has a debt to FCF ratio of 26.90. This is a negative value and a sign of low solvency as MOH would need 26.90 years to pay back of all of its debts.
The Debt to FCF ratio of MOH (26.90) is comparable to the rest of the industry.
MOH has a Debt/Equity ratio of 0.53. This is a neutral value indicating MOH is somewhat dependend on debt financing.
MOH's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. MOH outperforms 57.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 26.9 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.95
WACC8.48%
2.3 Liquidity
MOH has a Current Ratio of 1.55. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
MOH has a Current ratio (1.55) which is in line with its industry peers.
A Quick Ratio of 1.55 indicates that MOH should not have too much problems paying its short term obligations.
The Quick ratio of MOH (1.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
MOH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.65%.
Measured over the past years, MOH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.90%.
MOH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.52% yearly.
EPS 1Y (TTM)6.65%
EPS 3Y25.14%
EPS 5Y15.81%
EPS Q2Q%19.01%
Revenue 1Y (TTM)17.9%
Revenue growth 3Y20.6%
Revenue growth 5Y12.52%
Sales Q2Q%20.96%
3.2 Future
Based on estimates for the next years, MOH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.42% on average per year.
MOH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.41% yearly.
EPS Next Y12.09%
EPS Next 2Y11.74%
EPS Next 3Y12.42%
EPS Next 5YN/A
Revenue Next Year21.12%
Revenue Next 2Y14.23%
Revenue Next 3Y12.41%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 13.41 indicates a correct valuation of MOH.
86.11% of the companies in the same industry are more expensive than MOH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, MOH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.30, the valuation of MOH can be described as reasonable.
MOH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 87.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, MOH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaper than 99.07% of the companies in the same industry.
MOH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 179.35 | ||
| EV/EBITDA | 3.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MOH may justify a higher PE ratio.
A more expensive valuation may be justified as MOH's earnings are expected to grow with 12.42% in the coming years.
PEG (NY)1.11
PEG (5Y)0.85
EPS Next 2Y11.74%
EPS Next 3Y12.42%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MOLINA HEALTHCARE INC
NYSE:MOH (12/20/2024, 8:25:17 PM)
After market: 294.73 0 (0%)294.73
+1.21 (+0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.15%
Inst Owner Change-3.33%
Ins Owners0.49%
Ins Owner Change-0.31%
Market Cap16.86B
Analysts70.48
Price Target374.64 (27.11%)
Short Float %1.7%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)2.51%
Max EPS beat(2)5.45%
EPS beat(4)3
Avg EPS beat(4)2.28%
Min EPS beat(4)-0.33%
Max EPS beat(4)5.45%
EPS beat(8)7
Avg EPS beat(8)4.34%
EPS beat(12)11
Avg EPS beat(12)4.17%
EPS beat(16)13
Avg EPS beat(16)-5.46%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)0.37%
Max Revenue beat(2)3.3%
Revenue beat(4)4
Avg Revenue beat(4)3.72%
Min Revenue beat(4)0.37%
Max Revenue beat(4)7.05%
Revenue beat(8)6
Avg Revenue beat(8)2.12%
Revenue beat(12)10
Avg Revenue beat(12)2.13%
Revenue beat(16)13
Avg Revenue beat(16)2.39%
PT rev (1m)-1.44%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.43 | ||
| P/FCF | 179.35 | ||
| P/OCF | 94.71 | ||
| P/B | 3.53 | ||
| P/tB | 5.92 | ||
| EV/EBITDA | 3.12 |
EPS(TTM)21.98
EY7.46%
EPS(NY)26.08
Fwd EY8.85%
FCF(TTM)1.64
FCFY0.56%
OCF(TTM)3.11
OCFY1.06%
SpS685.3
BVpS83.39
TBVpS49.77
PEG (NY)1.11
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.98% | ||
| ROCE | 22.18% | ||
| ROIC | 16.53% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.2% | ||
| PM (TTM) | 2.92% | ||
| GM | 16.12% | ||
| FCFM | 0.24% |
ROA(3y)6.39%
ROA(5y)7.41%
ROE(3y)25.89%
ROE(5y)29.47%
ROIC(3y)17.87%
ROIC(5y)18.84%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)23.99%
ROCE(5y)25.29%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.48%
OM growth 5Y-5.57%
PM growth 3Y-2.6%
PM growth 5Y-3.07%
GM growth 3Y-5.09%
GM growth 5Y-2.44%
F-Score7
Asset Turnover2.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 26.9 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 46.41% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.74% | ||
| Profit Quality | 8.22% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 4.48 |
F-Score7
WACC8.48%
ROIC/WACC1.95
Cap/Depr(3y)53.2%
Cap/Depr(5y)61.55%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.31%
Profit Quality(3y)180.2%
Profit Quality(5y)172.56%
High Growth Momentum
Growth
EPS 1Y (TTM)6.65%
EPS 3Y25.14%
EPS 5Y15.81%
EPS Q2Q%19.01%
EPS Next Y12.09%
EPS Next 2Y11.74%
EPS Next 3Y12.42%
EPS Next 5YN/A
Revenue 1Y (TTM)17.9%
Revenue growth 3Y20.6%
Revenue growth 5Y12.52%
Sales Q2Q%20.96%
Revenue Next Year21.12%
Revenue Next 2Y14.23%
Revenue Next 3Y12.41%
Revenue Next 5YN/A
EBIT growth 1Y-1.73%
EBIT growth 3Y12.78%
EBIT growth 5Y6.25%
EBIT Next Year22.64%
EBIT Next 3Y14.26%
EBIT Next 5YN/A
FCF growth 1Y-93.65%
FCF growth 3Y-4.71%
FCF growth 5YN/A
OCF growth 1Y-88.75%
OCF growth 3Y-4.33%
OCF growth 5YN/A