Molina Healthcare logged a -7.0% change during today's morning session, and is now trading at a price of $331.24 per share.
Molina Healthcare returned gains of 12.6% last year, with its stock price reaching a high of $423.92 and a low of $282.96. Over the same period, the stock underperformed the S&P 500 index by -11.4%. The company's 50-day average price was $321.99. Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. Based in Long Beach, CA, the Large-Cap Health Care company has 18,000 full time employees. Molina Healthcare has not offered a dividend during the last year.
Strong Revenue Growth and Healthy Leverage Levels:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $18,890 | $16,829 | $19,423 | $27,771 | $31,974 | $34,072 |
| Operating Margins | 6% | 6% | 6% | 4% | 4% | 5% |
| Net Margins | 4% | 4% | 3% | 2% | 2% | 3% |
| Net Income (M) | $707 | $737 | $673 | $659 | $792 | $1,091 |
| Net Interest Expense (M) | $115 | $87 | $102 | $120 | $110 | $109 |
| Depreciation & Amort. (M) | $99 | $89 | $88 | $131 | $176 | $171 |
| Diluted Shares (M) | 67 | 64 | 60 | 59 | 58 | 58 |
| Earnings Per Share | $10.61 | $11.47 | $11.23 | $11.25 | $13.55 | $18.77 |
| EPS Growth | n/a | 8.11% | -2.09% | 0.18% | 20.44% | 38.52% |
| Avg. Price | $106.7 | $131.87 | $173.45 | $259.39 | $304.04 | $331.24 |
| P/E Ratio | 9.22 | 11.13 | 15.21 | 22.75 | 22.16 | 17.52 |
| Free Cash Flow (M) | -$344 | $377 | $1,824 | $2,042 | $682 | $1,578 |
| CAPEX (M) | $30 | $57 | $74 | $77 | $91 | $84 |
| EV / EBITDA | 4.07 | 6.21 | 7.31 | 11.1 | 11.81 | 9.47 |
| Total Debt (M) | $1,458 | $1,255 | $2,127 | $2,173 | $2,176 | $2,180 |
| Net Debt / EBITDA | -1.11 | -1.06 | -1.74 | -1.97 | -1.36 | -1.53 |
| Current Ratio | 1.52 | 1.83 | 1.59 | 1.43 | 1.47 | 1.54 |
Molina Healthcare benefits from rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and positive EPS growth. The company's financial statements show a decent current ratio of 1.54 and healthy leverage levels. Furthermore, Molina Healthcare has decent operating margins with a stable trend.
an Increase in Expected Earnings Improves Its Value Outlook but Trading Above Its Fair Price:
Molina Healthcare has a trailing twelve month P/E ratio of 19.0, compared to an average of 27.61 for the Health Care sector. Based on its EPS guidance of $26.6, the company has a forward P/E ratio of 12.1. The 14.0% compound average growth rate of Molina Healthcare's historical and projected earnings per share yields a PEG ratio of 1.35. This implies that the shares are fairly valued. The market is placing a fair value on Molina Healthcare's equity, since its P/B ratio of 4.04 is comparable to its sector average of 3.69. The company's shares are currently trading 89.2% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Molina Healthcare:
The 14 analysts following Molina Healthcare have set target prices ranging from $335.0 to $406.0 per share, for an average of $372.65 with a hold rating. The company is trading -11.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Molina Healthcare has an average amount of shares sold short because 2.6% of the company's shares are sold short. Institutions own 102.1% of the company's shares, and the insider ownership rate stands at 1.1%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,211,045,153.
