MOLINA HEALTHCARE INC (NYSE:MOH) was identified as a decent value stock through our fundamental screening process. The company operates in the healthcare sector, providing managed care services through government-sponsored programs. With a solid valuation score and reasonable fundamentals, MOH may appeal to value-oriented investors.
Valuation
MOH stands out with a Valuation Rating of 7/10, indicating it trades at an attractive price relative to its fundamentals. Key points include:
- P/E ratio of 10.11, significantly below the industry average of 35.81 and the S&P 500’s 27.29.
- Forward P/E of 8.14, suggesting continued undervaluation compared to peers.
- Enterprise Value/EBITDA is lower than 100% of industry competitors, reinforcing its cheap valuation.
Profitability
The company earns a Profitability Rating of 6/10, supported by:
- Strong ROE (27.29%) and ROIC (15.50%), outperforming most peers.
- Consistent profitability over the past five years, with positive operating cash flow.
- A declining profit margin (2.81%) is a concern, though still above many competitors.
Financial Health
MOH’s Health Rating of 5/10 reflects a stable but mixed financial position:
- Altman-Z score of 4.23, indicating low bankruptcy risk.
- Debt/Equity ratio of 0.87, in line with industry norms but slightly higher than ideal.
- Current and Quick Ratios of 1.63, suggesting adequate liquidity.
Growth
With a Growth Rating of 5/10, MOH shows steady but not exceptional expansion:
- Revenue growth of 16.77% YoY, with a five-year average of 19.29%.
- EPS growth expected at 14.09% annually, maintaining historical trends.
- Future revenue growth may slow to 7.38%, a potential headwind.
Our Decent Value Stocks screener lists more stocks with similar characteristics. For a deeper dive, review the full fundamental report on MOH.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
