HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCA - US40412C1018 - Common Stock
470.39 USD
+3.53 (+0.76%)
470.39 USD
0 (0%)
HCA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 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
HCA had positive earnings in the past year.
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
HCA has a Return On Assets of 10.62%. This is amongst the best in the industry. HCA outperforms 94.06% of its industry peers.
With an excellent Return On Invested Capital value of 21.84%, HCA belongs to the best of the industry, outperforming 97.03% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HCA is significantly above the industry average of 9.58%.
The last Return On Invested Capital (21.84%) for HCA is above the 3 year average (17.59%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 8.53%, HCA belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
HCA's Profit Margin has improved in the last couple of years.
HCA's Operating Margin of 15.64% is amongst the best of the industry. HCA outperforms 93.07% 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's Gross Margin of 84.96% is amongst the best of the industry. HCA outperforms 98.02% of its industry peers.
HCA's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for HCA has been reduced compared to 1 year ago.
The number of shares outstanding for HCA has been reduced compared to 5 years ago.
The debt/assets ratio for HCA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that HCA is not a great score, but indicates only limited risk for bankruptcy at the moment.
HCA has a Altman-Z score (2.71) which is comparable to the rest of the industry.
HCA has a debt to FCF ratio of 5.50. This is a neutral value as HCA would need 5.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.50, HCA is doing good in the industry, outperforming 63.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.53
WACC8.64%
2.3 Liquidity
HCA has a Current 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.
HCA has a worse Current ratio (0.85) than 79.21% of its industry peers.
A Quick Ratio of 0.76 indicates that HCA may have some problems paying its short term obligations.
HCA has a worse Quick ratio (0.76) than 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.39% over the past year.
The Earnings Per Share has been growing by 16.07% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.82% in the past year.
HCA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.58% yearly.
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 Y26.06%
EPS Next 2Y16.43%
EPS Next 3Y14.53%
EPS Next 5Y13.61%
Revenue Next Year7.42%
Revenue Next 2Y5.93%
Revenue Next 3Y5.67%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.18 indicates a rather expensive 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 74.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, HCA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of HCA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCA indicates a somewhat cheap valuation: HCA is cheaper than 75.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. HCA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCA is valued a bit cheaper than 72.28% of the companies in the same industry.
78.22% 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 | 13.26 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
HCA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of HCA may justify a higher PE ratio.
A more expensive valuation may be justified as HCA's earnings are expected to grow with 14.53% in the coming years.
PEG (NY)0.7
PEG (5Y)1.13
EPS Next 2Y16.43%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, 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 0.60. HCA pays more dividend than 82.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.93, HCA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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.
The dividend of HCA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.75%
EPS Next 2Y16.43%
EPS Next 3Y14.53%
470.39
+3.53 (+0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners61.87%
Inst Owner Change-4.52%
Ins Owners0.95%
Ins Owner Change0.02%
Market Cap107.34B
Revenue(TTM)74.37B
Net Income(TTM)6.34B
Analysts75.48
Price Target490.21 (4.21%)
Short Float %2.87%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend2.68
Dividend Growth(5Y)10.63%
DP10.75%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)0.4%
PT rev (3m)19.19%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)0.14%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 15.69 | ||
| P/S | 1.44 | ||
| P/FCF | 13.26 | ||
| P/OCF | 8.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.99 |
EPS(TTM)25.87
EY5.5%
EPS(NY)29.98
Fwd EY6.37%
FCF(TTM)35.48
FCFY7.54%
OCF(TTM)56.25
OCFY11.96%
SpS325.92
BVpS-23.38
TBVpS-68.41
PEG (NY)0.7
PEG (5Y)1.13
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 | 2.71 |
F-Score8
WACC8.64%
ROIC/WACC2.53
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 Y26.06%
EPS Next 2Y16.43%
EPS Next 3Y14.53%
EPS Next 5Y13.61%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%9.57%
Revenue Next Year7.42%
Revenue Next 2Y5.93%
Revenue Next 3Y5.67%
Revenue Next 5Y5.89%
EBIT growth 1Y10.77%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year45.8%
EBIT Next 3Y16.46%
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.
What is the valuation status of HCA HEALTHCARE INC (HCA) stock?
ChartMill assigns a valuation rating of 6 / 10 to HCA HEALTHCARE INC (HCA). This can be considered as Fairly Valued.
What is the profitability of HCA stock?
HCA HEALTHCARE INC (HCA) has a profitability rating of 8 / 10.
What is the financial health of HCA HEALTHCARE INC (HCA) stock?
The financial health rating of HCA HEALTHCARE INC (HCA) is 3 / 10.
Can you provide the expected EPS growth for HCA stock?
The Earnings per Share (EPS) of HCA HEALTHCARE INC (HCA) is expected to grow by 26.06% in the next year.