MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - US60855R1005 - Common Stock
180.83 USD
+6.11 (+3.5%)
180.83 USD
0 (0%)
Overall MOH gets a fundamental rating of 5 out of 10. We evaluated MOH against 102 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MOH had positive earnings in the past year.
In the past year MOH had a positive cash flow from operations.
MOH had positive earnings in each of the past 5 years.
In the past 5 years MOH always reported a positive cash flow from operatings.
1.2 Ratios
MOH's Return On Assets of 6.97% is amongst the best of the industry. MOH outperforms 88.24% of its industry peers.
The Return On Equity of MOH (24.55%) is better than 93.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.76%, MOH belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
MOH had an Average Return On Invested Capital over the past 3 years of 17.96%. This is significantly above the industry average of 9.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 24.55% | ||
| ROIC | 14.76% |
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
The Profit Margin of MOH (2.60%) is better than 64.71% of its industry peers.
In the last couple of years the Profit Margin of MOH has declined.
The Operating Margin of MOH (3.81%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MOH has declined.
MOH has a worse Gross Margin (14.88%) than 65.69% of its industry peers.
In the last couple of years the Gross Margin of MOH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | 2.6% | ||
| GM | 14.88% |
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.
The number of shares outstanding for MOH has been reduced compared to 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 4.27 indicates that MOH is not in any danger for bankruptcy at the moment.
The Altman-Z score of MOH (4.27) is better than 74.51% of its industry peers.
The Debt to FCF ratio of MOH is 8.34, which is on the high side as it means it would take MOH, 8.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.34, MOH is in line with its industry, outperforming 57.84% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that MOH is somewhat dependend on debt financing.
MOH has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 8.34 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.85
WACC7.98%
2.3 Liquidity
MOH has a Current Ratio of 1.66. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
MOH has a Current ratio (1.66) which is in line with its industry peers.
MOH has a Quick Ratio of 1.66. This is a normal value and indicates that MOH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.66, MOH is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.61% over the past year.
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 16.06%.
MOH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
EPS 1Y (TTM)7.61%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-6.48%
Revenue 1Y (TTM)16.06%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%15.66%
3.2 Future
Based on estimates for the next years, MOH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.46% on average per year.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y-15.1%
EPS Next 2Y-4.52%
EPS Next 3Y2.48%
EPS Next 5Y11.46%
Revenue Next Year9.99%
Revenue Next 2Y8.37%
Revenue Next 3Y7.18%
Revenue Next 5Y5.25%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.99, the valuation of MOH can be described as very cheap.
Based on the Price/Earnings ratio, MOH is valued cheaper than 96.08% of the companies in the same industry.
MOH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 8.76 indicates a reasonable valuation of MOH.
90.20% of the companies in the same industry are more expensive than MOH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MOH to the average of the S&P500 Index (22.76), we can say MOH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.76 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as MOH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.95 | ||
| EV/EBITDA | 0.13 |
4.3 Compensation for Growth
The decent profitability rating of MOH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-4.52%
EPS Next 3Y2.48%
5. Dividend
5.1 Amount
No dividends for MOH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
180.83
+6.11 (+3.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.43%
Inst Owner Change-6.36%
Ins Owners1.24%
Ins Owner Change8.23%
Market Cap9.80B
Analysts67.83
Price Target209.6 (15.91%)
Short Float %3.27%
Short Ratio1.17
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)-2.6%
Min EPS beat(2)-6.27%
Max EPS beat(2)1.06%
EPS beat(4)2
Avg EPS beat(4)-3.83%
Min EPS beat(4)-12.62%
Max EPS beat(4)2.51%
EPS beat(8)5
Avg EPS beat(8)-0.78%
EPS beat(12)9
Avg EPS beat(12)1.62%
EPS beat(16)13
Avg EPS beat(16)2.03%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)2.13%
Max Revenue beat(2)3.29%
Revenue beat(4)4
Avg Revenue beat(4)2.35%
Min Revenue beat(4)0.69%
Max Revenue beat(4)3.3%
Revenue beat(8)8
Avg Revenue beat(8)2.96%
Revenue beat(12)10
Avg Revenue beat(12)1.97%
Revenue beat(16)14
Avg Revenue beat(16)2.15%
PT rev (1m)-36.41%
PT rev (3m)-42.75%
EPS NQ rev (1m)-13.6%
EPS NQ rev (3m)-35.84%
EPS NY rev (1m)-19.35%
EPS NY rev (3m)-22.23%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.23 | ||
| P/FCF | 22.95 | ||
| P/OCF | 18.25 | ||
| P/B | 2.13 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 0.13 |
EPS(TTM)22.62
EY12.51%
EPS(NY)20.65
Fwd EY11.42%
FCF(TTM)7.88
FCFY4.36%
OCF(TTM)9.91
OCFY5.48%
SpS800.98
BVpS84.93
TBVpS44.93
PEG (NY)N/A
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 24.55% | ||
| ROCE | 19.85% | ||
| ROIC | 14.76% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.81% | ||
| PM (TTM) | 2.6% | ||
| GM | 14.88% | ||
| FCFM | 0.98% |
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-Score4
Asset Turnover2.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 8.34 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 54.73% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 28.95% | ||
| Profit Quality | 37.79% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.27 |
F-Score4
WACC7.98%
ROIC/WACC1.85
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)7.61%
EPS 3Y18.68%
EPS 5Y14.16%
EPS Q2Q%-6.48%
EPS Next Y-15.1%
EPS Next 2Y-4.52%
EPS Next 3Y2.48%
EPS Next 5Y11.46%
Revenue 1Y (TTM)16.06%
Revenue growth 3Y13.54%
Revenue growth 5Y19.29%
Sales Q2Q%15.66%
Revenue Next Year9.99%
Revenue Next 2Y8.37%
Revenue Next 3Y7.18%
Revenue Next 5Y5.25%
EBIT growth 1Y3.7%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year-10.1%
EBIT Next 3Y0.99%
EBIT Next 5YN/A
FCF growth 1Y-68.16%
FCF growth 3Y-35.66%
FCF growth 5Y7.61%
OCF growth 1Y-62.84%
OCF growth 3Y-32.77%
OCF growth 5Y8.21%