MOLINA HEALTHCARE INC (MOH)
US60855R1005 - Common Stock
We assign a fundamental rating of 5 out of 10 to MOH. MOH was compared to 113 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, MOH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
MOH had positive earnings in the past year.
MOH had a positive operating cash flow in the past year.
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
MOH's Return On Assets of 7.26% is amongst the best of the industry. MOH outperforms 92.92% of its industry peers.
The Return On Equity of MOH (23.98%) is better than 93.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.53%, MOH belongs to the top of the industry, outperforming 92.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MOH is significantly above the industry average of 8.10%.
| 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's Profit Margin of 2.92% is fine compared to the rest of the industry. MOH outperforms 73.45% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH's Operating Margin of 4.20% is fine compared to the rest of the industry. MOH outperforms 60.18% of its industry peers.
MOH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.12%, MOH is doing worse than 69.03% of the companies in the same industry.
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
MOH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MOH remains at a similar level compared to 1 year ago.
The number of shares outstanding for MOH has been reduced compared to 5 years ago.
Compared to 1 year ago, MOH has an improved debt to assets ratio.
2.2 Solvency
MOH has an Altman-Z score of 4.49. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
MOH has a better Altman-Z score (4.49) than 83.19% 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.
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 58.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 26.9 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.98
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.55 indicates that MOH should not have too much problems paying its short term obligations.
The Current ratio of MOH (1.55) is comparable to the rest of the industry.
A Quick Ratio of 1.55 indicates that MOH should not have too much problems paying its short term obligations.
MOH has a Quick ratio (1.55) which 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
The Earnings Per Share has been growing slightly by 6.65% over the past year.
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.
The Revenue has grown by 17.90% in the past year. This is quite good.
The Revenue has been growing by 12.52% on average over the past years. This is quite good.
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 12.12% on average per year.
MOH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y11.82%
EPS Next 2Y11.86%
EPS Next 3Y12.12%
EPS Next 5YN/A
Revenue Next Year21.25%
Revenue Next 2Y14.5%
Revenue Next 3Y12.52%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.47 indicates a correct valuation of MOH.
Based on the Price/Earnings ratio, MOH is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
MOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 11.33, the valuation of MOH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MOH is valued cheaper than 86.73% of the companies in the same industry.
MOH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
99.11% of the companies in the same industry are more expensive than MOH, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MOH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 180.16 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
The 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 12.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)0.85
EPS Next 2Y11.86%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MOLINA HEALTHCARE INC
NYSE:MOH (11/21/2024, 8:04:00 PM)
After market: 296.07 0 (0%)296.07
+1.43 (+0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 11.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.14
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.2% | ||
| PM (TTM) | 2.92% | ||
| GM | 16.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.65%
EPS 3Y25.14%
EPS 5Y
EPS Q2Q%
EPS Next Y11.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.9%
Revenue growth 3Y20.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y