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MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis

NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock

297.44  +11.23 (+3.92%)

After market: 297.44 0 (0%)

Fundamental Rating

5

MOH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Health Care Providers & Services industry. MOH has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on MOH. This makes MOH very considerable for value investing!


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year MOH was profitable.
MOH had a positive operating cash flow in the past year.
In the past 5 years MOH has always been profitable.
In the past 5 years MOH always reported a positive cash flow from operatings.
MOH Yearly Net Income VS EBIT VS OCF VS FCFMOH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B 2B

1.2 Ratios

MOH's Return On Assets of 7.26% is amongst the best of the industry. MOH outperforms 91.59% of its industry peers.
With an excellent Return On Equity value of 23.98%, MOH belongs to the best of the industry, outperforming 93.46% of the companies in the same industry.
MOH has a better Return On Invested Capital (16.53%) than 92.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOH is significantly above the industry average of 8.27%.
Industry RankSector 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%
MOH Yearly ROA, ROE, ROICMOH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

1.3 Margins

The Profit Margin of MOH (2.92%) is better than 71.03% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH has a Operating Margin of 4.20%. This is comparable to the rest of the industry: MOH outperforms 59.81% of its industry peers.
In the last couple of years the Operating Margin of MOH has declined.
MOH has a worse Gross Margin (16.12%) than 68.22% of its industry peers.
MOH's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
MOH Yearly Profit, Operating, Gross MarginsMOH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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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.
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.
MOH Yearly Shares OutstandingMOH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
MOH Yearly Total Debt VS Total AssetsMOH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.2 Solvency

MOH has an Altman-Z score of 4.46. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
MOH has a better Altman-Z score (4.46) than 83.18% of its industry peers.
The Debt to FCF ratio of MOH is 26.90, which is on the high side as it means it would take MOH, 26.90 years of fcf income to pay off all of its debts.
MOH has a Debt to FCF ratio of 26.90. This is comparable to the rest of the industry: MOH outperforms 54.21% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that MOH is somewhat dependend on debt financing.
The Debt to Equity ratio of MOH (0.53) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 26.9
Altman-Z 4.46
ROIC/WACC1.94
WACC8.52%
MOH Yearly LT Debt VS Equity VS FCFMOH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

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 of 1.55. This is comparable to the rest of the industry: MOH outperforms 56.07% of its industry peers.
MOH has a Quick 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.
With a Quick ratio value of 1.55, MOH perfoms like the industry average, outperforming 57.94% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.55
Quick Ratio 1.55
MOH Yearly Current Assets VS Current LiabilitesMOH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.65% over the past year.
The Earnings Per Share has been growing by 15.81% on average over the past years. This is quite good.
Looking at the last year, MOH shows a quite strong growth in Revenue. The Revenue has grown by 17.90% in the last year.
Measured over the past years, MOH shows a quite strong growth in Revenue. The Revenue has been growing by 12.52% on average per year.
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.
Based on estimates for the next years, MOH will show a quite strong growth in Revenue. The Revenue will grow by 12.34% on average per year.
EPS Next Y12.09%
EPS Next 2Y11.74%
EPS Next 3Y12.42%
EPS Next 5YN/A
Revenue Next Year21.13%
Revenue Next 2Y14.25%
Revenue Next 3Y12.34%
Revenue Next 5YN/A

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.
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.
MOH Yearly Revenue VS EstimatesMOH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B
MOH Yearly EPS VS EstimatesMOH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.53, which indicates a correct valuation of MOH.
85.05% of the companies in the same industry are more expensive than MOH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MOH to the average of the S&P500 Index (28.29), we can say MOH is valued rather cheaply.
MOH is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
MOH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 86.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, MOH is valued rather cheaply.
Industry RankSector Rank
PE 13.53
Fwd PE 11.4
MOH Price Earnings VS Forward Price EarningsMOH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOH is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 181
EV/EBITDA 2.85
MOH Per share dataMOH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600

4.3 Compensation for Growth

MOH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MOH has a very decent profitability rating, which may justify a higher PE ratio.
MOH's earnings are expected to grow with 12.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)0.86
EPS Next 2Y11.74%
EPS Next 3Y12.42%

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0

5. Dividend

5.1 Amount

MOH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MOLINA HEALTHCARE INC

NYSE:MOH (1/21/2025, 8:15:06 PM)

After market: 297.44 0 (0%)

297.44

+11.23 (+3.92%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners102.15%
Inst Owner Change-0.04%
Ins Owners0.49%
Ins Owner Change-0.34%
Market Cap17.01B
Analysts69.52
Price Target369.38 (24.19%)
Short Float %1.94%
Short Ratio1.75
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)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)-1.4%
PT rev (3m)-2.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.51%
Valuation
Industry RankSector Rank
PE 13.53
Fwd PE 11.4
P/S 0.43
P/FCF 181
P/OCF 95.58
P/B 3.57
P/tB 5.98
EV/EBITDA 2.85
EPS(TTM)21.98
EY7.39%
EPS(NY)26.08
Fwd EY8.77%
FCF(TTM)1.64
FCFY0.55%
OCF(TTM)3.11
OCFY1.05%
SpS685.3
BVpS83.39
TBVpS49.77
PEG (NY)1.12
PEG (5Y)0.86
Profitability
Industry RankSector 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 RankSector 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 4.46
F-Score7
WACC8.52%
ROIC/WACC1.94
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 Year21.13%
Revenue Next 2Y14.25%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
EBIT growth 1Y-1.73%
EBIT growth 3Y12.78%
EBIT growth 5Y6.25%
EBIT Next Year22.76%
EBIT Next 3Y14.6%
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