MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock - Currency: USD
MOH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make MOH suitable for value investing!
1. Profitability
1.1 Basic Checks
MOH had positive earnings in the past year.
In the past year MOH had a positive cash flow from operations.
In the past 5 years MOH has always been profitable.
MOH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MOH has a better Return On Assets (7.18%) than 88.35% of its industry peers.
With an excellent Return On Equity value of 27.29%, MOH belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
MOH has a Return On Invested Capital of 15.50%. This is amongst the best in the industry. MOH outperforms 92.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOH is significantly above the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 27.29% | ||
| ROIC | 15.5% |
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 (2.81%) is better than 64.08% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
MOH's Operating Margin of 4.10% is in line compared to the rest of the industry. MOH outperforms 57.28% of its industry peers.
MOH's Operating Margin has declined in the last couple of years.
MOH has a worse Gross Margin (15.22%) than 66.02% of its industry peers.
MOH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.1% | ||
| PM (TTM) | 2.81% | ||
| GM | 15.22% |
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
MOH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MOH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.25 indicates that MOH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.25, MOH is doing good in the industry, outperforming 77.67% of the companies in the same industry.
The Debt to FCF ratio of MOH is 7.17, which is on the high side as it means it would take MOH, 7.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MOH (7.17) is comparable to the rest of the industry.
MOH has a Debt/Equity ratio of 0.87. This is a neutral value indicating MOH is somewhat dependend on debt financing.
MOH's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. MOH is outperformed by 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 4.25 |
ROIC/WACC1.92
WACC8.06%
2.3 Liquidity
MOH has a Current Ratio of 1.63. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
MOH has a Current ratio (1.63) which is in line with its industry peers.
MOH has a Quick Ratio of 1.63. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.63, MOH is doing good in the industry, outperforming 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
MOH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.52%, which is quite good.
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 16.77%.
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)10.52%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%6.11%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%12.24%
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 14.09% yearly.
MOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y9.15%
EPS Next 2Y12.34%
EPS Next 3Y13.4%
EPS Next 5Y14.09%
Revenue Next Year9.41%
Revenue Next 2Y8.62%
Revenue Next 3Y7.88%
Revenue Next 5Y7.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.42, which indicates a very decent valuation of MOH.
89.32% of the companies in the same industry are more expensive than MOH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MOH to the average of the S&P500 Index (27.45), we can say MOH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of MOH.
Based on the Price/Forward Earnings ratio, MOH is valued cheaper than 92.23% of the companies in the same industry.
MOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 8.38 |
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.
MOH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 1.58 |
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.
A more expensive valuation may be justified as MOH's earnings are expected to grow with 13.40% in the coming years.
PEG (NY)1.14
PEG (5Y)0.74
EPS Next 2Y12.34%
EPS Next 3Y13.4%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
239.58
+0.58 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.67%
Inst Owner Change1.93%
Ins Owners1.24%
Ins Owner Change7.32%
Market Cap12.99B
Analysts69.57
Price Target366.88 (53.13%)
Short Float %2.32%
Short Ratio1.86
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)-5.78%
Min EPS beat(2)-12.62%
Max EPS beat(2)1.06%
EPS beat(4)3
Avg EPS beat(4)-0.9%
Min EPS beat(4)-12.62%
Max EPS beat(4)5.45%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.55%
EPS beat(16)13
Avg EPS beat(16)2.41%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.69%
Max Revenue beat(2)2.13%
Revenue beat(4)4
Avg Revenue beat(4)1.62%
Min Revenue beat(4)0.37%
Max Revenue beat(4)3.3%
Revenue beat(8)7
Avg Revenue beat(8)2.44%
Revenue beat(12)10
Avg Revenue beat(12)2.01%
Revenue beat(16)14
Avg Revenue beat(16)2.29%
PT rev (1m)0.2%
PT rev (3m)6.23%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.31 | ||
| P/FCF | 24.73 | ||
| P/OCF | 20.94 | ||
| P/B | 3.01 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 1.58 |
EPS(TTM)23
EY9.6%
EPS(NY)28.58
Fwd EY11.93%
FCF(TTM)9.69
FCFY4.04%
OCF(TTM)11.44
OCFY4.77%
SpS772.44
BVpS79.52
TBVpS39.39
PEG (NY)1.14
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 27.29% | ||
| ROCE | 20.85% | ||
| ROIC | 15.5% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.1% | ||
| PM (TTM) | 2.81% | ||
| GM | 15.22% | ||
| FCFM | 1.25% |
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-Score5
Asset Turnover2.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 50.26% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.55% | ||
| Profit Quality | 44.64% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.25 |
F-Score5
WACC8.06%
ROIC/WACC1.92
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)10.52%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%6.11%
EPS Next Y9.15%
EPS Next 2Y12.34%
EPS Next 3Y13.4%
EPS Next 5Y14.09%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%12.24%
Revenue Next Year9.41%
Revenue Next 2Y8.62%
Revenue Next 3Y7.88%
Revenue Next 5Y7.38%
EBIT growth 1Y5.99%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year10.05%
EBIT Next 3Y9.33%
EBIT Next 5YN/A
FCF growth 1Y-57.18%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-53.24%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%