HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
USA - NYSE:HCA - US40412C1018 - Common Stock
462.31 USD
+3.01 (+0.66%)
462.31 USD
0 (0%)
HCA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years HCA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HCA (10.62%) is better than 96.00% of its industry peers.
HCA's Return On Invested Capital of 21.84% is amongst the best of the industry. HCA outperforms 95.00% of its industry peers.
HCA had an Average Return On Invested Capital over the past 3 years of 17.59%. This is significantly above the industry average of 9.45%.
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
HCA has a better Profit Margin (8.53%) than 90.00% of its industry peers.
HCA's Profit Margin has improved in the last couple of years.
HCA has a Operating Margin of 15.64%. This is amongst the best in the industry. HCA outperforms 90.00% 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 has a better Gross Margin (84.96%) than 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.
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
Compared to 1 year ago, HCA has a worse debt to assets ratio.
2.2 Solvency
HCA has an Altman-Z score of 2.71. This is not the best score and indicates that HCA is in the grey zone with still only limited risk for bankruptcy at the moment.
HCA's Altman-Z score of 2.71 is fine compared to the rest of the industry. HCA outperforms 61.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.50, HCA is in the better half of the industry, outperforming 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.51
WACC8.71%
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.
With a Current ratio value of 0.85, HCA is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that HCA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, HCA is doing worse than 78.00% of the companies in the same industry.
| 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.
HCA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.07% yearly.
HCA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
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.
Based on estimates for the next years, HCA will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
The Price/Earnings ratio is 17.87, which indicates a rather expensive current valuation of HCA.
HCA's Price/Earnings ratio is a bit cheaper when compared to the industry. HCA is cheaper than 76.00% 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 26.35.
With a Price/Forward Earnings ratio of 15.40, HCA is valued correctly.
Based on the Price/Forward Earnings ratio, HCA is valued a bit cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.72. HCA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
73.00% of the companies in the same industry are more expensive than HCA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HCA indicates a somewhat cheap valuation: HCA is cheaper than 78.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 10 |
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.
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)0.69
PEG (5Y)1.11
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 2.55. HCA pays more dividend than 81.00% 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 | 0.61% |
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%
462.31
+3.01 (+0.66%)
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-0.84%
Ins Owners1.21%
Ins Owner Change0.02%
Market Cap108.18B
Revenue(TTM)74.37B
Net Income(TTM)6.34B
Analysts75.48
Price Target482.14 (4.29%)
Short Float %2.01%
Short Ratio2.57
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)1.01%
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 | 17.87 | ||
| Fwd PE | 15.4 | ||
| P/S | 1.45 | ||
| P/FCF | 13.36 | ||
| P/OCF | 8.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)25.87
EY5.6%
EPS(NY)30.03
Fwd EY6.49%
FCF(TTM)34.6
FCFY7.48%
OCF(TTM)54.86
OCFY11.87%
SpS317.84
BVpS-22.8
TBVpS-66.71
PEG (NY)0.69
PEG (5Y)1.11
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
WACC8.71%
ROIC/WACC2.51
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%.