HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
USA - NYSE:HCA - US40412C1018 - Common Stock
481.08 USD
+2.94 (+0.61%)
We assign a fundamental rating of 5 out of 10 to HCA. HCA was compared to 100 industry peers in the Health Care Providers & Services industry. While HCA belongs to the best of the industry regarding profitability, there are 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.
In the past year HCA had a positive cash flow from operations.
In the past 5 years HCA has always been profitable.
HCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HCA (10.62%) is better than 96.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.84%, HCA belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 9.40%.
The 3 year average ROIC (17.59%) for HCA is below the current ROIC(21.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | N/A | ||
| ROIC | 21.84% |
ROA(3y)9.92%
ROA(5y)10.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.59%
ROIC(5y)17.19%
1.3 Margins
Looking at the Profit Margin, with a value of 8.53%, HCA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HCA has grown nicely.
HCA's Operating Margin of 15.64% is amongst the best of the industry. HCA outperforms 91.00% of its industry peers.
HCA's Operating Margin has been stable in the last couple of years.
HCA's Gross Margin of 84.96% is amongst the best of the industry. HCA outperforms 98.00% 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 | 15.64% | ||
| PM (TTM) | 8.53% | ||
| GM | 84.96% |
OM growth 3Y-3.21%
OM growth 5Y1.22%
PM growth 3Y-11.67%
PM growth 5Y3.63%
GM growth 3Y0.36%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HCA is creating value.
HCA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HCA has less shares outstanding
The debt/assets ratio for HCA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 indicates that HCA is not a great score, but indicates only limited risk for bankruptcy at the moment.
HCA's Altman-Z score of 2.75 is fine compared to the rest of the industry. HCA outperforms 61.00% of its industry peers.
The Debt to FCF ratio of HCA is 5.50, which is a neutral value as it means it would take HCA, 5.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HCA (5.50) is better than 63.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.75 |
ROIC/WACC2.52
WACC8.65%
2.3 Liquidity
A Current Ratio of 0.85 indicates that HCA may have some problems paying its short term obligations.
HCA has a Current ratio of 0.85. This is amonst the worse of the industry: HCA underperforms 81.00% of its industry peers.
HCA has a Quick Ratio of 0.85. This is a bad value and indicates that HCA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HCA (0.76) is worse than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
HCA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.39%, which is quite good.
The Earnings Per Share has been growing by 16.07% on average over the past years. This is quite good.
Looking at the last year, HCA shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
Measured over the past years, HCA shows a small growth in Revenue. The Revenue has been growing by 6.58% on average per year.
EPS 1Y (TTM)15.39%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%38.37%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%9.57%
3.2 Future
Based on estimates for the next years, HCA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.61% on average per year.
HCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y25.97%
EPS Next 2Y16.51%
EPS Next 3Y14.74%
EPS Next 5Y13.61%
Revenue Next Year7.46%
Revenue Next 2Y6%
Revenue Next 3Y5.71%
Revenue Next 5Y5.89%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.60, which indicates a rather expensive current valuation of HCA.
Compared to the rest of the industry, the Price/Earnings ratio of HCA indicates a somewhat cheap valuation: HCA is cheaper than 73.00% of the companies listed in the same industry.
HCA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.02 indicates a correct valuation of HCA.
69.00% of the companies in the same industry are more expensive than HCA, based on the Price/Forward Earnings ratio.
HCA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCA indicates a somewhat cheap valuation: HCA is cheaper than 70.00% of the companies listed in the same industry.
78.00% 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 | 13.9 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HCA has an outstanding profitability rating, which may justify a higher PE ratio.
HCA's earnings are expected to grow with 14.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.16
EPS Next 2Y16.51%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, 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 2.57. HCA pays more dividend than 81.00% of the companies in the same industry.
With a Dividend Yield of 0.61, HCA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of HCA grows each year by 10.63%, which is quite nice.
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)10.63%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
10.75% of the earnings are spent on dividend by HCA. This is a low number and sustainable payout ratio.
HCA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.75%
EPS Next 2Y16.51%
EPS Next 3Y14.74%
NYSE:HCA (11/19/2025, 2:58:25 PM)
481.08
+2.94 (+0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners63.14%
Inst Owner Change-4.43%
Ins Owners1.21%
Ins Owner Change2.4%
Market Cap112.57B
Revenue(TTM)74.37B
Net Income(TTM)6.34B
Analysts75.48
Price Target482.14 (0.22%)
Short Float %2.47%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend2.68
Dividend Growth(5Y)10.63%
DP10.75%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.37%
Min EPS beat(2)8.18%
Max EPS beat(2)20.55%
EPS beat(4)3
Avg EPS beat(4)7.58%
Min EPS beat(4)-8.93%
Max EPS beat(4)20.55%
EPS beat(8)6
Avg EPS beat(8)9.59%
EPS beat(12)8
Avg EPS beat(12)7.06%
EPS beat(16)10
Avg EPS beat(16)5.64%
Revenue beat(2)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.2%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)7
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)0.26%
PT rev (1m)17.23%
PT rev (3m)20.12%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)4.71%
EPS NY rev (3m)8.8%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 16.02 | ||
| P/S | 1.51 | ||
| P/FCF | 13.9 | ||
| P/OCF | 8.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)25.87
EY5.38%
EPS(NY)30.03
Fwd EY6.24%
FCF(TTM)34.6
FCFY7.19%
OCF(TTM)54.86
OCFY11.4%
SpS317.84
BVpS-22.8
TBVpS-66.71
PEG (NY)0.72
PEG (5Y)1.16
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | N/A | ||
| ROCE | 27.8% | ||
| ROIC | 21.84% | ||
| ROICexc | 22.37% | ||
| ROICexgc | 29.89% | ||
| OM | 15.64% | ||
| PM (TTM) | 8.53% | ||
| GM | 84.96% | ||
| FCFM | 10.89% |
ROA(3y)9.92%
ROA(5y)10.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.59%
ROIC(5y)17.19%
ROICexc(3y)18.13%
ROICexc(5y)17.79%
ROICexgc(3y)23.68%
ROICexgc(5y)23.27%
ROCE(3y)22.39%
ROCE(5y)21.88%
ROICexgc growth 3Y0.58%
ROICexgc growth 5Y5.14%
ROICexc growth 3Y0.68%
ROICexc growth 5Y4.8%
OM growth 3Y-3.21%
OM growth 5Y1.22%
PM growth 3Y-11.67%
PM growth 5Y3.63%
GM growth 3Y0.36%
GM growth 5Y0.31%
F-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 136.68% | ||
| Cap/Sales | 6.37% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 85% | ||
| Profit Quality | 127.62% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.75 |
F-Score8
WACC8.65%
ROIC/WACC2.52
Cap/Depr(3y)149.8%
Cap/Depr(5y)135.79%
Cap/Sales(3y)7.17%
Cap/Sales(5y)6.62%
Profit Quality(3y)86.82%
Profit Quality(5y)101.65%
High Growth Momentum
Growth
EPS 1Y (TTM)15.39%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%38.37%
EPS Next Y25.97%
EPS Next 2Y16.51%
EPS Next 3Y14.74%
EPS Next 5Y13.61%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%9.57%
Revenue Next Year7.46%
Revenue Next 2Y6%
Revenue Next 3Y5.71%
Revenue Next 5Y5.89%
EBIT growth 1Y10.77%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year42.44%
EBIT Next 3Y15.29%
EBIT Next 5Y11.81%
FCF growth 1Y85.01%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y38.26%
OCF growth 3Y5.48%
OCF growth 5Y6.7%
HCA HEALTHCARE INC / HCA FAQ
What is the fundamental rating for HCA stock?
ChartMill assigns a fundamental rating of 5 / 10 to HCA.
Can you provide the valuation status for HCA HEALTHCARE INC?
ChartMill assigns a valuation rating of 6 / 10 to HCA HEALTHCARE INC (HCA). This can be considered as Fairly Valued.
How profitable is HCA HEALTHCARE INC (HCA) stock?
HCA HEALTHCARE INC (HCA) has a profitability rating of 8 / 10.
What is the earnings growth outlook for HCA HEALTHCARE INC?
The Earnings per Share (EPS) of HCA HEALTHCARE INC (HCA) is expected to grow by 25.97% in the next year.
Is the dividend of HCA HEALTHCARE INC sustainable?
The dividend rating of HCA HEALTHCARE INC (HCA) is 5 / 10 and the dividend payout ratio is 10.75%.