MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
USA - NYSE:MOH - US60855R1005 - Common Stock
192.68 USD
+4.12 (+2.18%)
192.68 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MOH. MOH was compared to 101 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MOH was profitable.
In the past year MOH had a positive cash flow from operations.
MOH had positive earnings in each of the past 5 years.
In the past 5 years MOH always reported a positive cash flow from operatings.
1.2 Ratios
MOH has a better Return On Assets (6.97%) than 87.13% of its industry peers.
MOH has a better Return On Equity (24.55%) than 92.08% of its industry peers.
The Return On Invested Capital of MOH (14.76%) is better than 92.08% 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 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 24.55% | ||
| ROIC | 14.76% |
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 (2.60%) is better than 64.36% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH has a Operating Margin (3.81%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MOH has declined.
The Gross Margin of MOH (14.88%) is worse than 66.34% of its industry peers.
In the last couple of years the Gross Margin of MOH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | 2.6% | ||
| GM | 14.88% |
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%
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.
Compared to 1 year ago, MOH has less shares outstanding
The number of shares outstanding for MOH has been reduced compared to 5 years ago.
Compared to 1 year ago, MOH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.30 indicates that MOH is not in any danger for bankruptcy at the moment.
The Altman-Z score of MOH (4.30) is better than 75.25% of its industry peers.
The Debt to FCF ratio of MOH is 8.34, which is on the high side as it means it would take MOH, 8.34 years of fcf income to pay off all of its debts.
MOH has a Debt to FCF ratio (8.34) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.77 indicates that MOH is somewhat dependend on debt financing.
MOH's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. MOH outperforms 44.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 8.34 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.8
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.66 indicates that MOH should not have too much problems paying its short term obligations.
MOH's Current ratio of 1.66 is in line compared to the rest of the industry. MOH outperforms 59.41% of its industry peers.
MOH has a Quick Ratio of 1.66. 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 1.66, MOH is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
MOH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
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.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.06%.
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)7.61%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-6.48%
Revenue 1Y (TTM)16.06%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%15.66%
3.2 Future
MOH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.44% yearly.
Based on estimates for the next years, MOH will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y-16.81%
EPS Next 2Y-6.82%
EPS Next 3Y2.48%
EPS Next 5Y8.44%
Revenue Next Year9.99%
Revenue Next 2Y8.37%
Revenue Next 3Y7.18%
Revenue Next 5Y4.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
MOH is valuated reasonably with a Price/Earnings ratio of 8.52.
96.04% of the companies in the same industry are more expensive than MOH, based on the Price/Earnings ratio.
MOH is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of MOH.
Based on the Price/Forward Earnings ratio, MOH is valued cheaply inside the industry as 89.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MOH to the average of the S&P500 Index (22.94), we can say MOH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaper than 100.00% of the companies in the same industry.
MOH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.46 | ||
| EV/EBITDA | 0.48 |
4.3 Compensation for Growth
MOH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-6.82%
EPS Next 3Y2.48%
5. Dividend
5.1 Amount
No dividends for MOH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
192.68
+4.12 (+2.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.99%
Inst Owner Change0.31%
Ins Owners1.26%
Ins Owner Change1.1%
Market Cap10.44B
Analysts67.83
Price Target205.18 (6.49%)
Short Float %5.72%
Short Ratio1.8
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)-2.6%
Min EPS beat(2)-6.27%
Max EPS beat(2)1.06%
EPS beat(4)2
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.62%
Max EPS beat(4)2.51%
EPS beat(8)5
Avg EPS beat(8)-0.78%
EPS beat(12)9
Avg EPS beat(12)1.62%
EPS beat(16)13
Avg EPS beat(16)2.03%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)2.13%
Max Revenue beat(2)3.29%
Revenue beat(4)4
Avg Revenue beat(4)2.35%
Min Revenue beat(4)0.69%
Max Revenue beat(4)3.3%
Revenue beat(8)8
Avg Revenue beat(8)2.96%
Revenue beat(12)10
Avg Revenue beat(12)1.97%
Revenue beat(16)14
Avg Revenue beat(16)2.15%
PT rev (1m)-2.08%
PT rev (3m)-37.75%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-35.06%
EPS NY rev (1m)-2.02%
EPS NY rev (3m)-20.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.24 | ||
| P/FCF | 24.46 | ||
| P/OCF | 19.45 | ||
| P/B | 2.27 | ||
| P/tB | 4.29 | ||
| EV/EBITDA | 0.48 |
EPS(TTM)22.62
EY11.74%
EPS(NY)19.67
Fwd EY10.21%
FCF(TTM)7.88
FCFY4.09%
OCF(TTM)9.91
OCFY5.14%
SpS800.98
BVpS84.93
TBVpS44.93
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 24.55% | ||
| ROCE | 19.85% | ||
| ROIC | 14.76% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.81% | ||
| PM (TTM) | 2.6% | ||
| GM | 14.88% | ||
| FCFM | 0.98% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.96%
ROIC(5y)17.65%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.15%
ROCE(5y)23.74%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover2.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 8.34 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 54.73% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 28.95% | ||
| Profit Quality | 37.79% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.3 |
F-Score4
WACC8.21%
ROIC/WACC1.8
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)7.61%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-6.48%
EPS Next Y-16.81%
EPS Next 2Y-6.82%
EPS Next 3Y2.48%
EPS Next 5Y8.44%
Revenue 1Y (TTM)16.06%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%15.66%
Revenue Next Year9.99%
Revenue Next 2Y8.37%
Revenue Next 3Y7.18%
Revenue Next 5Y4.76%
EBIT growth 1Y3.7%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year-15.62%
EBIT Next 3Y-1.12%
EBIT Next 5YN/A
FCF growth 1Y-68.16%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-62.84%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%