MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock - Currency: USD
Taking everything into account, MOH scores 5 out of 10 in our fundamental rating. MOH was compared to 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of MOH get a neutral evaluation. Nothing too spectacular is happening here. MOH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes MOH very considerable 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.
Each year in the past 5 years MOH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MOH (7.18%) is better than 88.35% of its industry peers.
With an excellent Return On Equity value of 27.29%, MOH belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.50%, MOH belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MOH is significantly above the industry average of 9.71%.
| 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
MOH has a better Profit Margin (2.81%) than 64.08% of its industry peers.
MOH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.10%, MOH is in line with its industry, outperforming 57.28% of the companies in the same industry.
MOH's Operating Margin has declined in the last couple of years.
MOH's Gross Margin of 15.22% is on the low side compared to the rest of the industry. MOH is outperformed by 66.02% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MOH is creating value.
MOH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MOH has been reduced compared to 5 years ago.
Compared to 1 year ago, MOH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.25 indicates that MOH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.25, MOH is in the better half of the industry, outperforming 77.67% 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.
With a Debt to FCF ratio value of 7.17, MOH perfoms like the industry average, outperforming 57.28% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that MOH is somewhat dependend on debt financing.
The Debt to Equity ratio of MOH (0.87) is worse than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 4.25 |
ROIC/WACC1.92
WACC8.06%
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 comparable to the rest of the industry.
A Quick Ratio of 1.63 indicates that MOH should not have too much problems paying its short term obligations.
MOH has a better Quick ratio (1.63) than 60.19% of its industry peers.
| 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.
MOH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.16% yearly.
Looking at the last year, MOH shows a quite strong growth in Revenue. The Revenue has grown by 16.77% in the last year.
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
The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y9.15%
EPS Next 2Y12.34%
EPS Next 3Y13.4%
EPS Next 5Y14.09%
Revenue Next Year9.41%
Revenue Next 2Y8.62%
Revenue Next 3Y7.88%
Revenue Next 5Y7.38%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MOH is valuated reasonably with a Price/Earnings ratio of 10.42.
MOH's Price/Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 89.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of MOH to the average of the S&P500 Index (27.45), we can say MOH is valued rather cheaply.
MOH is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
MOH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MOH is cheaper than 92.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MOH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
MOH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MOH is cheaper than 100.00% 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 | 24.73 | ||
| EV/EBITDA | 1.58 |
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.
MOH's earnings are expected to grow with 13.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)0.74
EPS Next 2Y12.34%
EPS Next 3Y13.4%
5. Dividend
5.1 Amount
MOH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
239.58
+0.58 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.67%
Inst Owner Change1.93%
Ins Owners1.24%
Ins Owner Change7.32%
Market Cap12.99B
Analysts69.57
Price Target366.88 (53.13%)
Short Float %2.32%
Short Ratio1.86
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)0.2%
PT rev (3m)6.23%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.31 | ||
| P/FCF | 24.73 | ||
| P/OCF | 20.94 | ||
| P/B | 3.01 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 1.58 |
EPS(TTM)23
EY9.6%
EPS(NY)28.58
Fwd EY11.93%
FCF(TTM)9.69
FCFY4.04%
OCF(TTM)11.44
OCFY4.77%
SpS772.44
BVpS79.52
TBVpS39.39
PEG (NY)1.14
PEG (5Y)0.74
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 | 4.25 |
F-Score5
WACC8.06%
ROIC/WACC1.92
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 Y9.15%
EPS Next 2Y12.34%
EPS Next 3Y13.4%
EPS Next 5Y14.09%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%12.24%
Revenue Next Year9.41%
Revenue Next 2Y8.62%
Revenue Next 3Y7.88%
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%