MOLINA HEALTHCARE INC (MOH) Stock Fundamental Analysis
NYSE:MOH - New York Stock Exchange, Inc. - US60855R1005 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MOH. MOH was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MOH was profitable.
In the past year MOH had a positive cash flow from operations.
Each year in the past 5 years MOH has been profitable.
Each year in the past 5 years MOH had a positive operating cash flow.
1.2 Ratios
MOH has a Return On Assets of 7.18%. This is amongst the best in the industry. MOH outperforms 89.22% of its industry peers.
The Return On Equity of MOH (27.29%) is better than 92.16% of its industry peers.
MOH has a better Return On Invested Capital (15.50%) than 92.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOH is significantly above the industry average of 9.53%.
| 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 64.71% of the companies in the same industry.
MOH's Profit Margin has declined in the last couple of years.
MOH has a Operating Margin (4.10%) which is in line with its industry peers.
MOH's Operating Margin has declined in the last couple of years.
MOH has a Gross Margin of 15.22%. This is in the lower half of the industry: MOH underperforms 65.69% 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.
MOH has less shares outstanding than it did 1 year ago.
MOH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MOH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.48 indicates that MOH is not in any danger for bankruptcy at the moment.
The Altman-Z score of MOH (4.48) is better than 80.39% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.17, MOH is in line with its industry, outperforming 54.90% 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 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.87
WACC8.31%
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 of 1.63. This is comparable to the rest of the industry: MOH outperforms 56.86% of its industry peers.
A Quick Ratio of 1.63 indicates that MOH should not have too much problems paying its short term obligations.
MOH has a Quick ratio of 1.63. This is in the better half of the industry: MOH outperforms 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.52% over the past year.
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
MOH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.54% yearly.
MOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.64% yearly.
EPS Next Y9.17%
EPS Next 2Y12.36%
EPS Next 3Y13.46%
EPS Next 5Y11.54%
Revenue Next Year9.45%
Revenue Next 2Y8.65%
Revenue Next 3Y7.97%
Revenue Next 5Y7.64%
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
Based on the Price/Earnings ratio of 14.18, the valuation of MOH can be described as correct.
Based on the Price/Earnings ratio, MOH is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
MOH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of MOH can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOH indicates a rather cheap valuation: MOH is cheaper than 83.33% of the companies listed in the same industry.
MOH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOH is valued cheaper than 96.08% 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 | 33.67 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
The 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)1.55
PEG (5Y)1
EPS Next 2Y12.36%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
No dividends for MOH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
326.15
+0.8 (+0.25%)
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 Change1.95%
Ins Owners0.52%
Ins Owner Change7.02%
Market Cap17.68B
Analysts69.09
Price Target366.14 (12.26%)
Short Float %1.78%
Short Ratio1.24
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)5.99%
PT rev (3m)0.32%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.42 | ||
| P/FCF | 33.67 | ||
| P/OCF | 28.51 | ||
| P/B | 4.1 | ||
| P/tB | 8.28 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)23
EY7.05%
EPS(NY)28.59
Fwd EY8.77%
FCF(TTM)9.69
FCFY2.97%
OCF(TTM)11.44
OCFY3.51%
SpS772.44
BVpS79.52
TBVpS39.39
PEG (NY)1.55
PEG (5Y)1
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 | 4.48 |
F-Score5
WACC8.31%
ROIC/WACC1.87
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 5Y11.54%
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 5Y7.64%
EBIT growth 1Y5.99%
EBIT growth 3Y15.28%
EBIT growth 5Y10.22%
EBIT Next Year10.05%
EBIT Next 3Y10.04%
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%