MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MOH - US60855R1005 - Common Stock
181.5 USD
-2 (-1.09%)
182.819 USD
+1.32 (+0.73%)
We assign a fundamental rating of 5 out of 10 to MOH. MOH was compared to 100 industry peers in the Health Care Providers & Services industry. MOH has only an average score on both its financial health and profitability. MOH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MOH had positive earnings in the past year.
In the past year MOH has reported a negative cash flow from operations.
Each year in the past 5 years MOH has been profitable.
Each year in the past 5 years MOH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.62%, MOH belongs to the top of the industry, outperforming 80.20% of the companies in the same industry.
MOH's Return On Equity of 21.07% is amongst the best of the industry. MOH outperforms 88.12% of its industry peers.
MOH has a Return On Invested Capital of 11.98%. This is amongst the best in the industry. MOH outperforms 86.14% 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 9.19%.
The 3 year average ROIC (17.96%) for MOH is well above the current ROIC(11.98%). The reason for the recent decline needs to be investigated.
| 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
MOH has a Profit Margin of 1.98%. This is in the better half of the industry: MOH outperforms 61.39% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH has a Operating Margin of 2.97%. This is comparable to the rest of the industry: MOH outperforms 54.46% of its industry peers.
MOH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 13.91%, MOH is not doing good in the industry: 66.34% of the companies in the same industry are doing better.
MOH's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MOH is creating value.
MOH has less shares outstanding than it did 1 year ago.
MOH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MOH is higher compared to a year ago.
2.2 Solvency
MOH has an Altman-Z score of 4.33. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
MOH's Altman-Z score of 4.33 is fine compared to the rest of the industry. MOH outperforms 78.22% 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.
MOH has a Debt to Equity ratio of 0.92. This is comparable to the rest of the industry: MOH outperforms 41.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.33 |
ROIC/WACC1.41
WACC8.47%
2.3 Liquidity
MOH has a Current 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.
Looking at the Current ratio, with a value of 1.68, MOH is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that MOH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, MOH is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
MOH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.06%.
Measured over the past years, MOH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.16% on average per year.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.65%.
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 Year10.79%
Revenue Next 2Y7.48%
Revenue Next 3Y7.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.84, the valuation of MOH can be described as very reasonable.
MOH's Price/Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 93.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of MOH to the average of the S&P500 Index (27.19), we can say MOH is valued rather cheaply.
A Price/Forward Earnings ratio of 13.26 indicates a correct valuation of MOH.
Based on the Price/Forward Earnings ratio, MOH is valued cheaper than 84.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, MOH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.33 |
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)0.69
EPS Next 2Y-22.26%
EPS Next 3Y-10.35%
5. Dividend
5.1 Amount
No dividends for MOH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
181.5
-2 (-1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners113.06%
Inst Owner Change0.37%
Ins Owners1.33%
Ins Owner Change1.17%
Market Cap9.33B
Revenue(TTM)44.55B
Net Income(TTM)883.00M
Analysts56.3
Price Target172.29 (-5.07%)
Short Float %7.14%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.8%
Min EPS beat(2)-53.34%
Max EPS beat(2)-6.27%
EPS beat(4)1
Avg EPS beat(4)-17.79%
Min EPS beat(4)-53.34%
Max EPS beat(4)1.06%
EPS beat(8)4
Avg EPS beat(8)-7.75%
EPS beat(12)8
Avg EPS beat(12)-3.04%
EPS beat(16)12
Avg EPS beat(16)-1.32%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)3.29%
Max Revenue beat(2)3.99%
Revenue beat(4)4
Avg Revenue beat(4)2.53%
Min Revenue beat(4)0.69%
Max Revenue beat(4)3.99%
Revenue beat(8)8
Avg Revenue beat(8)3.12%
Revenue beat(12)10
Avg Revenue beat(12)2.26%
Revenue beat(16)14
Avg Revenue beat(16)2.23%
PT rev (1m)-1.2%
PT rev (3m)-16.03%
EPS NQ rev (1m)-34.65%
EPS NQ rev (3m)-89.71%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-23.58%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 13.26 | ||
| P/S | 0.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.23 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 0.33 |
EPS(TTM)18.45
EY10.17%
EPS(NY)13.69
Fwd EY7.54%
FCF(TTM)-11.17
FCFYN/A
OCF(TTM)-8.97
OCFYN/A
SpS866.73
BVpS81.54
TBVpS38.7
PEG (NY)N/A
PEG (5Y)0.69
Graham Number183.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 21.07% | ||
| ROCE | 16.11% | ||
| ROIC | 11.98% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 2.97% | ||
| PM (TTM) | 1.98% | ||
| GM | 13.91% | ||
| FCFM | N/A |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.96%
ROIC(5y)17.65%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.15%
ROCE(5y)23.74%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover2.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 56.78% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 4.33 |
F-Score4
WACC8.47%
ROIC/WACC1.41
Cap/Depr(3y)51.53%
Cap/Depr(5y)59.49%
Cap/Sales(3y)0.26%
Cap/Sales(5y)0.29%
Profit Quality(3y)92.3%
Profit Quality(5y)171.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.06%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-69.38%
EPS Next Y-36.42%
EPS Next 2Y-22.26%
EPS Next 3Y-10.35%
EPS Next 5Y5.04%
Revenue 1Y (TTM)13.65%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%11%
Revenue Next Year10.79%
Revenue Next 2Y7.48%
Revenue Next 3Y7.21%
Revenue Next 5Y6.09%
EBIT growth 1Y-19.56%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year-31.25%
EBIT Next 3Y-9.54%
EBIT Next 5Y3.97%
FCF growth 1Y-128.12%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-121.54%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%
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 9.84 and the Price/Book (PB) ratio is 2.23.