MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock - Currency: USD
MOH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. MOH has an average financial health and profitability rating. MOH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, MOH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MOH was profitable.
MOH had a positive operating cash flow in the past year.
In the past 5 years MOH has always been profitable.
MOH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MOH's Return On Assets of 7.18% is amongst the best of the industry. MOH outperforms 88.24% of its industry peers.
MOH has a better Return On Equity (27.29%) than 92.16% of its industry peers.
The Return On Invested Capital of MOH (15.50%) is better than 92.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOH is significantly above the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 27.29% | ||
| ROIC | 15.5% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.96%
ROIC(5y)17.65%
1.3 Margins
Looking at the Profit Margin, with a value of 2.81%, MOH is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
In the last couple of years the Profit Margin of MOH has declined.
The Operating Margin of MOH (4.10%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MOH has declined.
MOH has a Gross Margin of 15.22%. This is in the lower half of the industry: MOH underperforms 64.71% of its industry peers.
MOH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.1% | ||
| PM (TTM) | 2.81% | ||
| GM | 15.22% |
OM growth 3Y1.53%
OM growth 5Y-7.6%
PM growth 3Y6.92%
PM growth 5Y-7.91%
GM growth 3Y1.48%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MOH is creating value.
Compared to 1 year ago, MOH has less shares outstanding
The number of shares outstanding for MOH has been reduced compared to 5 years ago.
The debt/assets ratio for MOH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.40 indicates that MOH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.40, MOH is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
The Debt to FCF ratio of MOH is 7.17, which is on the high side as it means it would take MOH, 7.17 years of fcf income to pay off all of its debts.
MOH's Debt to FCF ratio of 7.17 is in line compared to the rest of the industry. MOH outperforms 56.86% of its industry peers.
MOH has a Debt/Equity ratio of 0.87. This is a neutral value indicating MOH is somewhat dependend on debt financing.
MOH's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. MOH outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.88
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.63 indicates that MOH should not have too much problems paying its short term obligations.
MOH has a Current ratio (1.63) which is in line with its industry peers.
A Quick Ratio of 1.63 indicates that MOH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.63, MOH is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
MOH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.52%, which is quite good.
Measured over the past years, MOH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.16% on average per year.
MOH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.77%.
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
EPS 1Y (TTM)10.52%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%6.11%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%12.24%
3.2 Future
MOH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.09% yearly.
MOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y9.17%
EPS Next 2Y12.36%
EPS Next 3Y13.46%
EPS Next 5Y14.09%
Revenue Next Year9.45%
Revenue Next 2Y8.65%
Revenue Next 3Y7.97%
Revenue Next 5Y7.38%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.81 indicates a correct valuation of MOH.
Based on the Price/Earnings ratio, MOH is valued cheaper than 82.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, MOH is valued rather cheaply.
The Price/Forward Earnings ratio is 10.30, which indicates a very decent valuation of MOH.
86.27% of the companies in the same industry are more expensive than MOH, based on the Price/Forward Earnings ratio.
MOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaper than 99.02% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.42 | ||
| EV/EBITDA | 3.15 |
4.3 Compensation for Growth
MOH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MOH may justify a higher PE ratio.
A more expensive valuation may be justified as MOH's earnings are expected to grow with 13.46% in the coming years.
PEG (NY)1.4
PEG (5Y)0.9
EPS Next 2Y12.36%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
294.62
-1.07 (-0.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change1.93%
Ins Owners0.52%
Ins Owner Change7.32%
Market Cap15.97B
Analysts69.09
Price Target367.66 (24.79%)
Short Float %2.03%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.78%
Min EPS beat(2)-12.62%
Max EPS beat(2)1.06%
EPS beat(4)3
Avg EPS beat(4)-0.9%
Min EPS beat(4)-12.62%
Max EPS beat(4)5.45%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.55%
EPS beat(16)13
Avg EPS beat(16)2.41%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.69%
Max Revenue beat(2)2.13%
Revenue beat(4)4
Avg Revenue beat(4)1.62%
Min Revenue beat(4)0.37%
Max Revenue beat(4)3.3%
Revenue beat(8)7
Avg Revenue beat(8)2.44%
Revenue beat(12)10
Avg Revenue beat(12)2.01%
Revenue beat(16)14
Avg Revenue beat(16)2.29%
PT rev (1m)1.67%
PT rev (3m)8.07%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.38 | ||
| P/FCF | 30.42 | ||
| P/OCF | 25.76 | ||
| P/B | 3.7 | ||
| P/tB | 7.48 | ||
| EV/EBITDA | 3.15 |
EPS(TTM)23
EY7.81%
EPS(NY)28.59
Fwd EY9.71%
FCF(TTM)9.69
FCFY3.29%
OCF(TTM)11.44
OCFY3.88%
SpS772.44
BVpS79.52
TBVpS39.39
PEG (NY)1.4
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 27.29% | ||
| ROCE | 20.85% | ||
| ROIC | 15.5% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.1% | ||
| PM (TTM) | 2.81% | ||
| GM | 15.22% | ||
| FCFM | 1.25% |
ROA(3y)7.1%
ROA(5y)6.75%
ROE(3y)26.28%
ROE(5y)27.2%
ROIC(3y)17.96%
ROIC(5y)17.65%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.15%
ROCE(5y)23.74%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.53%
OM growth 5Y-7.6%
PM growth 3Y6.92%
PM growth 5Y-7.91%
GM growth 3Y1.48%
GM growth 5Y-2.5%
F-Score5
Asset Turnover2.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 50.26% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.55% | ||
| Profit Quality | 44.64% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.4 |
F-Score5
WACC8.24%
ROIC/WACC1.88
Cap/Depr(3y)51.53%
Cap/Depr(5y)59.49%
Cap/Sales(3y)0.26%
Cap/Sales(5y)0.29%
Profit Quality(3y)92.3%
Profit Quality(5y)171.56%
High Growth Momentum
Growth
EPS 1Y (TTM)10.52%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%6.11%
EPS Next Y9.17%
EPS Next 2Y12.36%
EPS Next 3Y13.46%
EPS Next 5Y14.09%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%12.24%
Revenue Next Year9.45%
Revenue Next 2Y8.65%
Revenue Next 3Y7.97%
Revenue Next 5Y7.38%
EBIT growth 1Y5.99%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year10.05%
EBIT Next 3Y9.33%
EBIT Next 5YN/A
FCF growth 1Y-57.18%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-53.24%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%