HCA HEALTHCARE INC (HCA)
US40412C1018 - Common Stock
We assign a fundamental rating of 6 out of 10 to HCA. HCA was compared to 117 industry peers in the Health Care Providers & Services industry. HCA scores excellent on profitability, but there are some minor concerns on its financial health. HCA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HCA was profitable.
HCA had a positive operating cash flow in the past year.
HCA had positive earnings in each of the past 5 years.
HCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.33%, HCA belongs to the best of the industry, outperforming 93.97% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.54%, HCA belongs to the best of the industry, outperforming 95.69% of the companies in the same industry.
HCA had an Average Return On Invested Capital over the past 3 years of 17.69%. This is significantly above the industry average of 8.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.33% | ||
| ROE | N/A | ||
| ROIC | 17.54% |
ROA(3y)11.27%
ROA(5y)9.9%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.69%
ROIC(5y)16.66%
1.3 Margins
The Profit Margin of HCA (8.07%) is better than 91.38% of its industry peers.
In the last couple of years the Profit Margin of HCA has remained more or less at the same level.
HCA's Operating Margin of 14.82% is amongst the best of the industry. HCA outperforms 94.83% of its industry peers.
In the last couple of years the Operating Margin of HCA has remained more or less at the same level.
HCA has a better Gross Margin (84.76%) than 98.28% of its industry peers.
In the last couple of years the Gross Margin of HCA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.82% | ||
| PM (TTM) | 8.07% | ||
| GM | 84.76% |
OM growth 3Y1.69%
OM growth 5Y0.81%
PM growth 3Y3.47%
PM growth 5Y-0.11%
GM growth 3Y0.4%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCA is creating value.
The number of shares outstanding for HCA has been reduced compared to 1 year ago.
Compared to 5 years ago, HCA has less shares outstanding
Compared to 1 year ago, HCA has an improved debt to assets ratio.
2.2 Solvency
HCA has an Altman-Z score of 2.58. This is not the best score and indicates that HCA is in the grey zone with still only limited risk for bankruptcy at the moment.
HCA's Altman-Z score of 2.58 is fine compared to the rest of the industry. HCA outperforms 68.10% of its industry peers.
HCA has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as HCA would need 8.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.45, HCA is doing good in the industry, outperforming 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.58 |
ROIC/WACC2.32
WACC7.57%
2.3 Liquidity
HCA has a Current Ratio of 1.18. This is a normal value and indicates that HCA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, HCA is doing worse than 61.21% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that HCA should not have too much problems paying its short term obligations.
HCA has a Quick ratio of 1.02. This is in the lower half of the industry: HCA underperforms 62.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
HCA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.41%, which is quite good.
The Earnings Per Share has been growing by 13.82% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.86% in the past year.
HCA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)10.41%
EPS 3Y23.61%
EPS 5Y13.82%
EPS growth Q2Q27.8%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y8.03%
Revenue growth 5Y6.84%
Revenue growth Q2Q11.65%
3.2 Future
The Earnings Per Share is expected to grow by 10.00% on average over the next years. This is quite good.
HCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.40% yearly.
EPS Next Y11.42%
EPS Next 2Y11.72%
EPS Next 3Y11.17%
EPS Next 5Y10%
Revenue Next Year7.71%
Revenue Next 2Y6.54%
Revenue Next 3Y6.08%
Revenue Next 5Y5.4%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
Based on the Price/Earnings ratio of 16.69, the valuation of HCA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HCA indicates a rather cheap valuation: HCA is cheaper than 81.03% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HCA to the average of the S&P500 Index (25.02), we can say HCA is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.98 indicates a correct valuation of HCA.
78.45% of the companies in the same industry are more expensive than HCA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HCA to the average of the S&P500 Index (21.32), we can say HCA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCA is valued cheaper than 80.17% of the companies in the same industry.
75.86% of the companies in the same industry are more expensive than HCA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.57 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
HCA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)1.21
EPS Next 2Y11.72%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, HCA is not a good candidate for dividend investing.
HCA's Dividend Yield is rather good when compared to the industry average which is at 2.73. HCA pays more dividend than 83.62% of the companies in the same industry.
With a Dividend Yield of 0.86, HCA pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of HCA is nicely growing with an annual growth rate of 11.63%!
HCA has been paying a dividend for over 5 years, so it has already some track record.
HCA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.63%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HCA pays out 12.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of HCA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.61%
EPS Next 2Y11.72%
EPS Next 3Y11.17%
HCA HEALTHCARE INC
NYSE:HCA (4/29/2024, 7:04:33 PM)
After market: 311.42 0 (0%)311.42
+4.73 (+1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap82.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 14.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.46
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.33% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.82% | ||
| PM (TTM) | 8.07% | ||
| GM | 84.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.41%
EPS 3Y23.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.86%
Revenue growth 3Y8.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y