HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
NYSE:HCA - US40412C1018 - Common Stock
405.43 USD
-1.85 (-0.45%)
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 has a great profitability rating, there are quite some concerns on its financial health. HCA may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years HCA has been profitable.
HCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.03%, HCA belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
HCA has a better Return On Invested Capital (19.97%) than 93.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 9.14%.
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
With an excellent Profit Margin value of 8.21%, HCA belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
HCA's Profit Margin has improved in the last couple of years.
HCA's Operating Margin of 15.24% is amongst the best of the industry. HCA outperforms 90.10% of its industry peers.
HCA's Operating Margin has been stable in the last couple of years.
HCA has a better Gross Margin (84.79%) than 98.02% 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 | 15.24% | ||
| 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
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
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's Debt to FCF ratio of 6.10 is fine compared to the rest of the industry. HCA outperforms 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | N/A |
ROIC/WACC2.5
WACC8%
2.3 Liquidity
A Current Ratio of 0.98 indicates that HCA may have some problems paying its short term obligations.
With a Current ratio value of 0.98, HCA is not doing good in the industry: 72.28% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.86, HCA is not doing good in the industry: 71.29% of the companies in the same industry are doing better.
| 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.
HCA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.07% yearly.
Looking at the last year, HCA shows a small growth in Revenue. The Revenue has grown by 6.37% 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)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 12.48% yearly.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y20.1%
EPS Next 2Y13.95%
EPS Next 3Y13.17%
EPS Next 5Y12.48%
Revenue Next Year6.32%
Revenue Next 2Y5.47%
Revenue Next 3Y5.44%
Revenue Next 5Y5.75%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 16.94, HCA is valued correctly.
78.22% of the companies in the same industry are more expensive than HCA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.17, HCA is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.12 indicates a correct valuation of HCA.
HCA's Price/Forward Earnings ratio is rather cheap when compared to the industry. HCA is cheaper than 80.20% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.78. HCA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCA is valued a bit cheaper than 74.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCA is valued cheaper than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.01 | ||
| EV/EBITDA | 9.58 |
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 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.05
EPS Next 2Y13.95%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 2.50, HCA pays a better dividend. On top of this HCA pays more dividend than 82.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, HCA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
11.47% of the earnings are spent on dividend by HCA. This is a low number and sustainable payout ratio.
The dividend of HCA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP11.47%
EPS Next 2Y13.95%
EPS Next 3Y13.17%
NYSE:HCA (8/29/2025, 10:14:43 AM)
405.43
-1.85 (-0.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.92%
Inst Owner Change-6.56%
Ins Owners1.18%
Ins Owner Change-0.01%
Market Cap94.87B
Analysts75.48
Price Target401.44 (-0.98%)
Short Float %2.41%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)0.52%
PT rev (3m)5.23%
EPS NQ rev (1m)1.77%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)3.74%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.94 | ||
| Fwd PE | 14.12 | ||
| P/S | 1.3 | ||
| P/FCF | 13.01 | ||
| P/OCF | 7.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.58 |
EPS(TTM)23.94
EY5.9%
EPS(NY)28.72
Fwd EY7.08%
FCF(TTM)31.16
FCFY7.69%
OCF(TTM)51.01
OCFY12.58%
SpS310.69
BVpS-18.78
TBVpS-62.68
PEG (NY)0.84
PEG (5Y)1.05
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%
ROIC/WACC2.5
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 Y20.1%
EPS Next 2Y13.95%
EPS Next 3Y13.17%
EPS Next 5Y12.48%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%6.36%
Revenue Next Year6.32%
Revenue Next 2Y5.47%
Revenue Next 3Y5.44%
Revenue Next 5Y5.75%
EBIT growth 1Y8.78%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year42.11%
EBIT Next 3Y15.33%
EBIT Next 5Y11.27%
FCF growth 1Y47.82%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y21.48%
OCF growth 3Y5.48%
OCF growth 5Y6.7%