MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock - Currency: USD
Overall MOH gets a fundamental rating of 6 out of 10. We evaluated MOH 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. These ratings would make MOH suitable 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.
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
The Return On Assets of MOH (7.54%) is better than 90.65% of its industry peers.
MOH has a Return On Equity of 26.22%. This is amongst the best in the industry. MOH outperforms 94.39% of its industry peers.
The Return On Invested Capital of MOH (16.44%) is better than 93.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOH is significantly above the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 26.22% | ||
| ROIC | 16.44% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.95%
ROIC(5y)17.65%
1.3 Margins
MOH's Profit Margin of 2.90% is fine compared to the rest of the industry. MOH outperforms 71.03% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH has a Operating Margin (4.21%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MOH has declined.
MOH's Gross Margin of 15.31% is on the low side compared to the rest of the industry. MOH is outperformed by 70.09% of its industry peers.
MOH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.21% | ||
| PM (TTM) | 2.9% | ||
| GM | 15.31% |
OM growth 3Y1.51%
OM growth 5Y-7.61%
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.
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 4.57 indicates that MOH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.57, MOH belongs to the top of the industry, outperforming 82.24% of the companies in the same industry.
The Debt to FCF ratio of MOH is 5.73, which is a neutral value as it means it would take MOH, 5.73 years of fcf income to pay off all of its debts.
MOH's Debt to FCF ratio of 5.73 is fine compared to the rest of the industry. MOH outperforms 74.77% of its industry peers.
MOH has a Debt/Equity ratio of 0.69. This is a neutral value indicating MOH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, MOH perfoms like the industry average, outperforming 50.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.96
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.62 indicates that MOH should not have too much problems paying its short term obligations.
The Current ratio of MOH (1.62) is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that MOH should not have too much problems paying its short term obligations.
MOH's Quick ratio of 1.62 is in line compared to the rest of the industry. MOH outperforms 59.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past year.
The Earnings Per Share has been growing by 14.16% on average over the past years. This is quite good.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.31%.
Measured over the past years, MOH shows a quite strong growth in Revenue. The Revenue has been growing by 19.29% on average per year.
EPS 1Y (TTM)8.43%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%15.3%
Revenue 1Y (TTM)19.31%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%16.04%
3.2 Future
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
Based on estimates for the next years, MOH will show a quite strong growth in Revenue. The Revenue will grow by 9.82% on average per year.
EPS Next Y10.02%
EPS Next 2Y12.37%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue Next Year7.75%
Revenue Next 2Y8.17%
Revenue Next 3Y9.82%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.53, 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.
MOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 11.39, the valuation of MOH can be described as reasonable.
Based on the Price/Forward Earnings ratio, MOH is valued cheaper than 85.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MOH to the average of the S&P500 Index (22.68), we can say MOH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 11.39 |
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.
Based on the Price/Free Cash Flow ratio, MOH is valued a bit cheaper than the industry average as 67.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.95 | ||
| EV/EBITDA | 3.16 |
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.
A more expensive valuation may be justified as MOH's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)1.25
PEG (5Y)0.88
EPS Next 2Y12.37%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
283.81
-7.65 (-2.62%)
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-5.66%
Ins Owners0.49%
Ins Owner Change0.09%
Market Cap15.75B
Analysts69.52
Price Target364.98 (28.6%)
Short Float %1.9%
Short Ratio1.63
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)-5.06%
Min EPS beat(2)-12.62%
Max EPS beat(2)2.51%
EPS beat(4)3
Avg EPS beat(4)-0.79%
Min EPS beat(4)-12.62%
Max EPS beat(4)5.45%
EPS beat(8)6
Avg EPS beat(8)2.62%
EPS beat(12)10
Avg EPS beat(12)2.8%
EPS beat(16)13
Avg EPS beat(16)3.56%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)0.69%
Max Revenue beat(2)3.3%
Revenue beat(4)4
Avg Revenue beat(4)2.13%
Min Revenue beat(4)0.37%
Max Revenue beat(4)4.15%
Revenue beat(8)6
Avg Revenue beat(8)1.78%
Revenue beat(12)10
Avg Revenue beat(12)2.02%
Revenue beat(16)14
Avg Revenue beat(16)2.57%
PT rev (1m)-1.19%
PT rev (3m)-3.98%
EPS NQ rev (1m)-7.36%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-4.66%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 11.39 | ||
| P/S | 0.39 | ||
| P/FCF | 28.95 | ||
| P/OCF | 24.46 | ||
| P/B | 3.5 | ||
| P/tB | 6.16 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)22.65
EY7.98%
EPS(NY)24.92
Fwd EY8.78%
FCF(TTM)9.8
FCFY3.45%
OCF(TTM)11.6
OCFY4.09%
SpS732.43
BVpS81.01
TBVpS46.09
PEG (NY)1.25
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 26.22% | ||
| ROCE | 22.11% | ||
| ROIC | 16.44% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.21% | ||
| PM (TTM) | 2.9% | ||
| GM | 15.31% | ||
| FCFM | 1.34% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.95%
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)23.73%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.51%
OM growth 5Y-7.61%
PM growth 3Y6.92%
PM growth 5Y-7.91%
GM growth 3Y1.48%
GM growth 5Y-2.5%
F-Score6
Asset Turnover2.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 53.76% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.97% | ||
| Profit Quality | 46.14% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 4.57 |
F-Score6
WACC8.37%
ROIC/WACC1.96
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)8.43%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%15.3%
EPS Next Y10.02%
EPS Next 2Y12.37%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue 1Y (TTM)19.31%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%16.04%
Revenue Next Year7.75%
Revenue Next 2Y8.17%
Revenue Next 3Y9.82%
Revenue Next 5YN/A
EBIT growth 1Y2.83%
EBIT growth 3Y15.25%
EBIT growth 5Y10.21%
EBIT Next Year18.46%
EBIT Next 3Y15.63%
EBIT Next 5YN/A
FCF growth 1Y-65.53%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-61.25%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%