Overall MOH gets a fundamental rating of 5 out of 10. We evaluated MOH against 103 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MOH had positive earnings in the past year.
In the past year MOH has reported a negative 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

The Return On Assets of MOH (5.62%) is better than 79.61% of its industry peers.
MOH has a better Return On Equity (21.07%) than 88.35% of its industry peers.
MOH has a better Return On Invested Capital (11.98%) than 86.41% 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 3 year average ROIC (17.96%) for MOH is well above the current ROIC(11.98%). The reason for the recent decline needs to be investigated.

		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

With a decent Profit Margin value of 1.98%, MOH is doing good in the industry, outperforming 61.16% of the companies in the same industry.
MOH's Profit Margin has declined in the last couple of years.
MOH has a Operating Margin (2.97%) which is comparable to the rest of the industry.
MOH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.91%, MOH is doing worse than 66.02% of the companies in the same industry.
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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MOH is creating value.
The number of shares outstanding for MOH has been reduced compared to 1 year ago.
MOH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MOH has a worse debt to assets ratio.

2.2 Solvency

MOH has an Altman-Z score of 4.34. This indicates that MOH is financially healthy and has little risk of bankruptcy at the moment.
MOH has a better Altman-Z score (4.34) than 77.67% of its industry peers.
MOH has a Debt/Equity ratio of 0.92. This is a neutral value indicating MOH is somewhat dependend on debt financing.
MOH's Debt to Equity ratio of 0.92 is in line compared to the rest of the industry. MOH outperforms 42.72% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.92
Debt/FCF	N/A
Altman-Z	4.34

ROIC/WACC1.43

WACC8.38%

2.3 Liquidity

MOH has a Current 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.
MOH's Current ratio of 1.68 is fine compared to the rest of the industry. MOH outperforms 65.05% of its industry peers.
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 69.90% 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.
MOH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.16% yearly.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.65%.
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)-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

The Earnings Per Share is expected to grow by 5.04% on average over the next years.
MOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.

EPS Next Y-37.9%

EPS Next 2Y-21.49%

EPS Next 3Y-10.33%

EPS Next 5Y5.04%

Revenue Next Year10.86%

Revenue Next 2Y7.46%

Revenue Next 3Y7.71%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.14, the valuation of MOH can be described as very reasonable.
Based on the Price/Earnings ratio, MOH is valued cheaper than 90.29% of the companies in the same industry.
MOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
A Price/Forward Earnings ratio of 13.40 indicates a correct valuation of MOH.
Based on the Price/Forward Earnings ratio, MOH is valued cheaply inside the industry as 82.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MOH to the average of the S&P500 Index (25.83), we can say MOH is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	10.14
Fwd PE	13.4

4.2 Price Multiples

MOH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MOH is cheaper than 100.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	0.52

4.3 Compensation for Growth

The decent profitability rating of MOH may justify a higher PE ratio.
A cheap valuation may be justified as MOH's earnings are expected to decrease with -10.33% in the coming years.