HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
NYSE:HCA - New York Stock Exchange, Inc. - US40412C1018 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HCA. HCA was compared to 103 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HCA.
1. Profitability
1.1 Basic Checks
In the past year HCA was profitable.
HCA had a positive operating cash flow in the past year.
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 better Return On Assets (10.03%) than 94.17% of its industry peers.
HCA has a Return On Invested Capital of 19.97%. This is amongst the best in the industry. HCA outperforms 93.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 9.51%.
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
The Profit Margin of HCA (8.21%) is better than 90.29% 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 89.32% of its industry peers.
HCA's Operating Margin has been stable in the last couple of years.
HCA's Gross Margin of 84.79% is amongst the best of the industry. HCA outperforms 98.06% of its industry peers.
HCA's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, HCA has less shares outstanding
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's Debt to FCF ratio of 6.10 is fine compared to the rest of the industry. HCA outperforms 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | N/A |
ROIC/WACC2.41
WACC8.27%
2.3 Liquidity
HCA has a Current 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 Current ratio (0.98) than 72.82% 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 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
HCA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.39%, which is quite good.
Measured over the past years, HCA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.07% on average per year.
HCA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.37%.
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 13.29% yearly.
HCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y15.78%
EPS Next 2Y13.36%
EPS Next 3Y13.29%
EPS Next 5Y13.29%
Revenue Next Year6.28%
Revenue Next 2Y5.45%
Revenue Next 3Y5.44%
Revenue Next 5Y5.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.52, HCA is valued correctly.
Based on the Price/Earnings ratio, HCA is valued a bit cheaper than 74.76% of the companies in the same industry.
HCA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.99.
A Price/Forward Earnings ratio of 13.07 indicates a correct valuation of HCA.
Based on the Price/Forward Earnings ratio, HCA is valued a bit cheaper than the industry average as 74.76% of the companies are valued more expensively.
HCA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
69.90% of the companies in the same industry are more expensive than HCA, based on the Enterprise Value to EBITDA ratio.
80.58% 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 | 12.26 | ||
| EV/EBITDA | 9.08 |
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 13.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)0.97
EPS Next 2Y13.36%
EPS Next 3Y13.29%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 2.97, HCA pays a better dividend. On top of this HCA pays more dividend than 82.52% of the companies listed in the same industry.
With a Dividend Yield of 0.81, HCA pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
11.47% 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.
DP11.47%
EPS Next 2Y13.36%
EPS Next 3Y13.29%
NYSE:HCA (8/7/2025, 3:14:02 PM)
371.53
+5.38 (+1.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners63.87%
Inst Owner Change-0.74%
Ins Owners1.15%
Ins Owner Change0%
Market Cap89.38B
Analysts78.06
Price Target399.35 (7.49%)
Short Float %2.31%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)0.78%
PT rev (3m)4.92%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.07 | ||
| P/S | 1.23 | ||
| P/FCF | 12.26 | ||
| P/OCF | 7.49 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)23.94
EY6.44%
EPS(NY)28.43
Fwd EY7.65%
FCF(TTM)30.31
FCFY8.16%
OCF(TTM)49.61
OCFY13.35%
SpS302.19
BVpS-18.26
TBVpS-60.97
PEG (NY)0.98
PEG (5Y)0.97
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
WACC8.27%
ROIC/WACC2.41
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 Y15.78%
EPS Next 2Y13.36%
EPS Next 3Y13.29%
EPS Next 5Y13.29%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y6.32%
Revenue growth 5Y6.58%
Sales Q2Q%6.36%
Revenue Next Year6.28%
Revenue Next 2Y5.45%
Revenue Next 3Y5.44%
Revenue Next 5Y5.71%
EBIT growth 1Y8.78%
EBIT growth 3Y2.91%
EBIT growth 5Y7.88%
EBIT Next Year40.2%
EBIT Next 3Y15.79%
EBIT Next 5Y11.63%
FCF growth 1Y47.82%
FCF growth 3Y1.57%
FCF growth 5Y10.36%
OCF growth 1Y21.48%
OCF growth 3Y5.48%
OCF growth 5Y6.7%