HCA HEALTHCARE INC (HCA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCA - US40412C1018 - Common Stock
479.32 USD
+5 (+1.05%)
479.32 USD
0 (0%)
Overall HCA gets a fundamental rating of 5 out of 10. We evaluated HCA against 100 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 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.
In the past 5 years HCA always reported a positive cash flow from operatings.
1.2 Ratios
HCA has a better Return On Assets (10.62%) than 94.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.84%, HCA belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HCA is significantly above the industry average of 9.19%.
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
HCA has a better Profit Margin (8.53%) than 91.00% 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 93.00% of its industry peers.
HCA's Operating Margin has been stable in the last couple of years.
The Gross Margin of HCA (84.96%) is better than 98.00% 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
HCA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HCA has less shares outstanding than it did 1 year ago.
HCA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HCA is higher compared to a year ago.
2.2 Solvency
HCA has an Altman-Z score of 2.72. 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.
Looking at the Altman-Z score, with a value of 2.72, HCA is in line with its industry, outperforming 57.00% of the companies in the same industry.
The Debt to FCF ratio of HCA is 5.50, which is a neutral value as it means it would take HCA, 5.50 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.50, HCA is doing good in 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 | 2.72 |
ROIC/WACC2.55
WACC8.55%
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: 79.00% 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.
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.
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.
The Revenue is expected to grow by 5.89% on average over the next years.
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.
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
HCA is valuated rather expensively with a Price/Earnings ratio of 18.53.
Based on the Price/Earnings ratio, HCA is valued a bit cheaper than 76.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HCA to the average of the S&P500 Index (27.30), we can say HCA is valued slightly cheaper.
HCA is valuated correctly with a Price/Forward Earnings ratio of 15.99.
Based on the Price/Forward Earnings ratio, HCA is valued a bit cheaper than 78.00% of the companies in the same industry.
HCA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
HCA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCA is cheaper than 74.00% of the companies in the same industry.
78.00% 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 | 13.51 | ||
| EV/EBITDA | 10.05 |
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)0.71
PEG (5Y)1.15
EPS Next 2Y16.43%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
HCA has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 0.59, HCA pays a better dividend. On top of this HCA pays more dividend than 82.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, HCA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 2Y16.43%
EPS Next 3Y14.53%
479.32
+5 (+1.05%)
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 Change0.15%
Ins Owners0.95%
Ins Owner Change0.02%
Market Cap109.38B
Revenue(TTM)74.37B
Net Income(TTM)6.34B
Analysts74.84
Price Target490.21 (2.27%)
Short Float %2.87%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 | 18.53 | ||
| Fwd PE | 15.99 | ||
| P/S | 1.47 | ||
| P/FCF | 13.51 | ||
| P/OCF | 8.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.05 |
EPS(TTM)25.87
EY5.4%
EPS(NY)29.98
Fwd EY6.26%
FCF(TTM)35.48
FCFY7.4%
OCF(TTM)56.25
OCFY11.74%
SpS325.92
BVpS-23.38
TBVpS-68.41
PEG (NY)0.71
PEG (5Y)1.15
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 | 2.72 |
F-Score8
WACC8.55%
ROIC/WACC2.55
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.