Taking everything into account, MOH scores 5 out of 10 in our fundamental rating. MOH was compared to 103 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 has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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 (5.62%) than 79.61% of its industry peers.
MOH has a better Return On Equity (21.07%) than 88.35% of its industry peers.
MOH's Return On Invested Capital of 11.98% is amongst the best of the industry. MOH outperforms 86.41% 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

MOH has a Profit Margin of 1.98%. This is in the better half of the industry: MOH outperforms 61.16% of its industry peers.
MOH's Profit Margin has declined in the last couple of years.
The Operating Margin of MOH (2.97%) is comparable to the rest of the industry.
MOH's Operating Margin has declined in the last couple of years.
MOH has a worse Gross Margin (13.91%) than 66.02% 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%

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ROA

ROE

ROIC

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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 has been reduced compared to 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

An Altman-Z score of 4.38 indicates that MOH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.38, MOH is in the better half of the industry, outperforming 77.67% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that MOH is somewhat dependend on debt financing.
The Debt to Equity ratio of MOH (0.92) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.92
Debt/FCF	N/A
Altman-Z	4.38

ROIC/WACC1.42

WACC8.43%

2.3 Liquidity

A Current Ratio of 1.68 indicates that MOH should not have too much problems paying 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 65.05% 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.
With a decent Quick ratio value of 1.68, MOH is doing good in the industry, outperforming 69.90% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.68
Quick Ratio	1.68

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MOH have decreased strongly by -16.06% in the last year.
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.
Looking at the last year, MOH shows a quite strong growth in Revenue. The Revenue has grown by 13.65% in the last year.
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.
MOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.

EPS Next Y-37.9%

EPS Next 2Y-21.49%

EPS Next 3Y-10.33%

EPS Next 5Y5.04%

Revenue Next Year10.86%

Revenue Next 2Y7.46%

Revenue Next 3Y7.71%

Revenue Next 5Y6.09%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

MOH is valuated reasonably with a Price/Earnings ratio of 10.94.
MOH's Price/Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 89.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. MOH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.46, MOH is valued correctly.
MOH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 80.58% of the companies in the same industry.
MOH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	10.94
Fwd PE	14.46

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MOH indicates a rather cheap valuation: MOH is cheaper than 100.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	1.02

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 -10.33% in the coming years. This may justify a cheaper valuation.