HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
USA - NYSE:HCA - US40412C1018 - Common Stock
426.16 USD
+6.56 (+1.56%)
426.16 USD
0 (0%)
Overall HCA gets a fundamental rating of 5 out of 10. We evaluated HCA against 101 industry peers in the Health Care Providers & Services industry. While HCA has a great profitability rating, there are quite some concerns on its financial health. HCA has a decent growth rate and is not valued too expensively.
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.
HCA had positive earnings in each of the past 5 years.
Each year in the past 5 years HCA had a positive operating cash flow.
1.2 Ratios
HCA has a Return On Assets of 10.03%. 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 19.97%, HCA belongs to the best of the industry, outperforming 93.07% 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 9.33%.
The 3 year average ROIC (17.59%) for HCA is below the current ROIC(19.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | N/A | ||
| ROIC | 19.97% |
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
HCA has a Profit Margin of 8.21%. This is amongst the best in the industry. HCA outperforms 89.11% of its industry peers.
HCA's Profit Margin has improved in the last couple of years.
HCA has a better Operating Margin (15.24%) than 89.11% of its industry peers.
In the last couple of years the Operating Margin of HCA has remained more or less at the same level.
With an excellent Gross Margin value of 84.79%, HCA belongs to the best of the industry, outperforming 98.02% of the companies in the same industry.
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 | 15.24% | ||
| PM (TTM) | 8.21% | ||
| GM | 84.79% |
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
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.
The number of shares outstanding for HCA has been reduced compared to 5 years ago.
HCA has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HCA is 6.10, which is on the high side as it means it would take HCA, 6.10 years of fcf income to pay off all of its debts.
HCA has a better Debt to FCF ratio (6.10) than 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | N/A |
ROIC/WACC2.43
WACC8.23%
2.3 Liquidity
A Current Ratio of 0.98 indicates that HCA may have some problems paying its short term obligations.
HCA has a Current ratio of 0.98. This is in the lower half of the industry: HCA underperforms 74.26% of its industry peers.
HCA has a Quick Ratio of 0.98. 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 Quick ratio (0.86) than 72.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.39% 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 6.37% 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)12.39%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%23.51%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%6.36%
3.2 Future
HCA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.11% yearly.
HCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y20.3%
EPS Next 2Y13.87%
EPS Next 3Y13.1%
EPS Next 5Y13.11%
Revenue Next Year6.41%
Revenue Next 2Y5.38%
Revenue Next 3Y5.37%
Revenue Next 5Y5.65%
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
The Price/Earnings ratio is 17.80, which indicates a rather expensive current valuation of HCA.
77.23% of the companies in the same industry are more expensive than HCA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.40. HCA is valued slightly cheaper when compared to this.
HCA is valuated correctly with a Price/Forward Earnings ratio of 14.86.
77.23% of the companies in the same industry are more expensive than HCA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, HCA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
HCA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCA is cheaper than 72.28% of the companies in the same industry.
HCA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCA is cheaper than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 9.88 |
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.
HCA's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)1.11
EPS Next 2Y13.87%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.69%, which is pretty low.
HCA's Dividend Yield is rather good when compared to the industry average which is at 2.44. HCA pays more dividend than 82.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HCA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of HCA is nicely growing with an annual growth rate of 10.63%!
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)10.63%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
HCA pays out 11.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of HCA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.47%
EPS Next 2Y13.87%
EPS Next 3Y13.1%
426.16
+6.56 (+1.56%)
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 Change0.05%
Ins Owners1.21%
Ins Owner Change-0.01%
Market Cap99.72B
Analysts74.84
Price Target411.28 (-3.49%)
Short Float %2.61%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.68
Dividend Growth(5Y)10.63%
DP11.47%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.35%
Min EPS beat(2)8.18%
Max EPS beat(2)10.52%
EPS beat(4)2
Avg EPS beat(4)2.4%
Min EPS beat(4)-8.93%
Max EPS beat(4)10.52%
EPS beat(8)5
Avg EPS beat(8)6.68%
EPS beat(12)8
Avg EPS beat(12)5.37%
EPS beat(16)10
Avg EPS beat(16)5.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)-0.4%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.41%
Revenue beat(16)8
Avg Revenue beat(16)0.4%
PT rev (1m)1.23%
PT rev (3m)2.99%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0.16%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 14.86 | ||
| P/S | 1.37 | ||
| P/FCF | 13.67 | ||
| P/OCF | 8.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.88 |
EPS(TTM)23.94
EY5.62%
EPS(NY)28.68
Fwd EY6.73%
FCF(TTM)31.16
FCFY7.31%
OCF(TTM)51.01
OCFY11.97%
SpS310.69
BVpS-18.78
TBVpS-62.68
PEG (NY)0.88
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | N/A | ||
| ROCE | 25.41% | ||
| ROIC | 19.97% | ||
| ROICexc | 20.41% | ||
| ROICexgc | 26.88% | ||
| OM | 15.24% | ||
| PM (TTM) | 8.21% | ||
| GM | 84.79% | ||
| FCFM | 10.03% |
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%
ROICexcg growth 3Y0.58%
ROICexcg 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-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.1 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 135.72% | ||
| Cap/Sales | 6.39% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 122.12% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | N/A |
F-Score6
WACC8.23%
ROIC/WACC2.43
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)12.39%
EPS 3Y8.12%
EPS 5Y16.07%
EPS Q2Q%23.51%
EPS Next Y20.3%
EPS Next 2Y13.87%
EPS Next 3Y13.1%
EPS Next 5Y13.11%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%6.36%
Revenue Next Year6.41%
Revenue Next 2Y5.38%
Revenue Next 3Y5.37%
Revenue Next 5Y5.65%
EBIT growth 1Y8.78%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year42.44%
EBIT Next 3Y15.29%
EBIT Next 5Y11.15%
FCF growth 1Y47.82%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y21.48%
OCF growth 3Y5.48%
OCF growth 5Y6.7%