HCA Healthcare, Inc. Fundamental Analysis (NYSE: HCA)
HCA Healthcare, Inc. (NYSE: HCA) shows weak financial fundamentals with a PE ratio of 15.41, profit margin of 8.77%, and ROE of -1.13%. The company generates $75.8B in annual revenue with moderate year-over-year growth of 7.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHCA demonstrates superior asset utilization.
Valuation Score
ExcellentHCA trades at attractive valuation levels.
Growth Score
ExcellentHCA delivers strong and consistent growth momentum.
Financial Health Score
ModerateHCA shows balanced financial health with some risks.
Profitability Score
WeakHCA struggles to sustain strong margins.
Key Financial Metrics
Is HCA Expensive or Cheap?
P/E Ratio
HCA trades at 15.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCA's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values HCA Healthcare, Inc. at -15.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.30 times EBITDA. This is generally considered low.
How Well Does HCA Make Money?
Net Profit Margin
For every $100 in sales, HCA Healthcare, Inc. keeps $8.77 as profit after all expenses.
Operating Margin
Core operations generate 15.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.13 in profit for every $100 of shareholder equity.
ROA
HCA Healthcare, Inc. generates $11.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HCA Healthcare, Inc. produces operating cash flow of $10.81B, showing steady but balanced cash generation.
Free Cash Flow
HCA Healthcare, Inc. produces free cash flow of $5.83B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $26.91 in free cash annually.
FCF Yield
HCA converts 5.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
-15.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.13
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How HCA Stacks Against Its Sector Peers
| Metric | HCA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.41 | 31.25 | Better (Cheaper) |
| ROE | -112.87% | 563.00% | Weak |
| Net Margin | 8.77% | 7024.00% | Weak |
| Debt/Equity | -7.42 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 0.78 | 5.76 | Weak Liquidity |
| ROA | 11.30% | -63.00% (disorted) | Strong |
HCA outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HCA Healthcare, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
115.83%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
165.87%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
101.37%
Industry Style: Defensive, Growth, Innovation
High Growth