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 106 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH has a decent growth rate and is not valued too expensively.
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.
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 7.54% is amongst the best of the industry. MOH outperforms 89.62% of its industry peers.
Looking at the Return On Equity, with a value of 26.22%, MOH belongs to the top of the industry, outperforming 91.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.42%, MOH belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
MOH had an Average Return On Invested Capital over the past 3 years of 17.96%. This is significantly above the industry average of 8.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 26.22% | ||
| ROIC | 16.42% |
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
With a decent Profit Margin value of 2.90%, MOH is doing good in the industry, outperforming 66.04% of the companies in the same industry.
MOH's Profit Margin has declined in the last couple of years.
MOH has a Operating Margin (4.20%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MOH has declined.
Looking at the Gross Margin, with a value of 15.31%, MOH is doing worse than 66.98% of the companies in the same industry.
In the last couple of years the Gross Margin of MOH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | 2.9% | ||
| GM | 15.31% |
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
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.
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
MOH has an Altman-Z score of 4.65. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
MOH has a better Altman-Z score (4.65) than 80.19% of its industry peers.
MOH has a debt to FCF ratio of 5.77. This is a neutral value as MOH would need 5.77 years to pay back of all of its debts.
The Debt to FCF ratio of MOH (5.77) is better than 66.04% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that MOH is somewhat dependend on debt financing.
MOH has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: MOH outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 4.65 |
ROIC/WACC2
WACC8.2%
2.3 Liquidity
MOH has a Current Ratio of 1.62. 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 of 1.62. This is in the better half of the industry: MOH outperforms 60.38% of its industry peers.
A Quick Ratio of 1.62 indicates that MOH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, MOH is in the better half of the industry, outperforming 63.21% of the companies in the same industry.
| 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.
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.
Looking at the last year, MOH shows a quite strong growth in Revenue. The Revenue has grown by 19.31% in the last year.
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
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
Based on estimates for the next years, MOH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.54% on average per year.
The Revenue is expected to grow by 7.64% on average over the next years.
EPS Next Y8.24%
EPS Next 2Y11.92%
EPS Next 3Y12.77%
EPS Next 5Y11.54%
Revenue Next Year8.56%
Revenue Next 2Y8.25%
Revenue Next 3Y8.07%
Revenue Next 5Y7.64%
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 stable.
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
With a Price/Earnings ratio of 14.22, MOH is valued correctly.
77.36% 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 valuation a bit cheaper than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 13.14, which indicates a correct valuation of MOH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOH indicates a rather cheap valuation: MOH is cheaper than 82.08% of the companies listed in the same industry.
MOH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.14 |
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 96.23% of the companies listed in the same industry.
MOH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.4 | ||
| EV/EBITDA | 3.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MOH may justify a higher PE ratio.
MOH's earnings are expected to grow with 12.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)1
EPS Next 2Y11.92%
EPS Next 3Y12.77%
5. Dividend
5.1 Amount
No dividends for MOH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
322.19
-10.19 (-3.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change0%
Ins Owners0.52%
Ins Owner Change5.33%
Market Cap17.62B
Analysts69.52
Price Target345.45 (7.22%)
Short Float %3.14%
Short Ratio2.24
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)1.55%
PT rev (3m)-6.48%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-10%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-6.01%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.77%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.14 | ||
| P/S | 0.43 | ||
| P/FCF | 32.4 | ||
| P/OCF | 27.37 | ||
| P/B | 3.92 | ||
| P/tB | 6.89 | ||
| EV/EBITDA | 3.93 |
EPS(TTM)22.65
EY7.03%
EPS(NY)24.52
Fwd EY7.61%
FCF(TTM)9.95
FCFY3.09%
OCF(TTM)11.77
OCFY3.65%
SpS743.14
BVpS82.19
TBVpS46.76
PEG (NY)1.73
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 26.22% | ||
| ROCE | 22.08% | ||
| ROIC | 16.42% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.2% | ||
| 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)17.96%
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-Score6
Asset Turnover2.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.77 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 53.76% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 14.12 | ||
| Cash Conversion | 34% | ||
| Profit Quality | 46.14% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 4.65 |
F-Score6
WACC8.2%
ROIC/WACC2
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 Y8.24%
EPS Next 2Y11.92%
EPS Next 3Y12.77%
EPS Next 5Y11.54%
Revenue 1Y (TTM)19.31%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%16.04%
Revenue Next Year8.56%
Revenue Next 2Y8.25%
Revenue Next 3Y8.07%
Revenue Next 5Y7.64%
EBIT growth 1Y2.71%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year10.05%
EBIT Next 3Y10.04%
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%