Taking everything into account, MOH scores 5 out of 10 in our fundamental rating. MOH was compared to 102 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 correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MOH was profitable.
MOH had a negative 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.

1.2 Ratios

MOH's Return On Assets of 5.62% is amongst the best of the industry. MOH outperforms 80.39% of its industry peers.
The Return On Equity of MOH (21.07%) is better than 88.24% of its industry peers.
The Return On Invested Capital of MOH (11.98%) is better than 86.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOH 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

The Profit Margin of MOH (1.98%) is better than 61.76% of its industry peers.
MOH's Profit Margin has declined in the last couple of years.
MOH has a Operating Margin of 2.97%. This is comparable to the rest of the industry: MOH outperforms 54.90% of its industry peers.
MOH's Operating Margin has declined in the last couple of years.
MOH has a worse Gross Margin (13.91%) than 65.69% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

MOH has an Altman-Z score of 4.37. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.37, MOH is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that MOH is somewhat dependend on debt financing.
MOH has a Debt to Equity ratio (0.92) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.92
Debt/FCF	N/A
Altman-Z	4.37

ROIC/WACC1.42

WACC8.45%

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 65.69% of the companies in the same industry.
MOH has a Quick 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 Quick ratio, with a value of 1.68, MOH is in the better half of the industry, outperforming 70.59% 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.
The Earnings Per Share has been growing by 14.16% on average over the past years. This is quite good.
The Revenue has grown by 13.65% in the past year. This is quite good.
MOH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.

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

Based on estimates for the next years, MOH will show a small growth in Earnings Per Share. The EPS will grow by 5.04% on average per year.
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 Year10.59%

Revenue Next 2Y7.26%

Revenue Next 3Y7.1%

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.
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

Based on the Price/Earnings ratio of 10.94, the valuation of MOH can be described as reasonable.
Based on the Price/Earnings ratio, MOH is valued cheaper than 90.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, MOH is valued rather cheaply.
MOH is valuated correctly with a Price/Forward Earnings ratio of 14.75.
80.39% of the companies in the same industry are more expensive than MOH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MOH is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	10.94
Fwd PE	14.75

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.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	0.92

4.3 Compensation for Growth

MOH has a very decent profitability rating, which 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.