Molina Healthcare, Inc. Fundamental Analysis (NYSE: MOH)
Molina Healthcare, Inc. Fundamental Analysis (NYSE: MOH)
Molina Healthcare, Inc. (NYSE: MOH) shows weak financial fundamentals with a PE ratio of 1272.12, profit margin of -0.02%, and ROE of -0.17%. The company generates $45.3B in annual revenue with strong year-over-year growth of 11.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MOH's fundamental strength across five key dimensions:
Efficiency Score
WeakMOH struggles to generate sufficient returns from assets.
Valuation Score
ModerateMOH shows balanced valuation metrics.
Growth Score
ModerateMOH shows steady but slowing expansion.
Financial Health Score
ExcellentMOH maintains a strong and stable balance sheet.
Profitability Score
WeakMOH struggles to sustain strong margins.
Key Financial Metrics
Is MOH Expensive or Cheap?
P/E Ratio
MOH trades at 1272.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MOH's PEG of -12.82 indicates potential undervaluation.
Price to Book
The market values Molina Healthcare, Inc. at 2.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.42 times EBITDA. This signals the market has high growth expectations.
How Well Does MOH Make Money?
Net Profit Margin
For every $100 in sales, Molina Healthcare, Inc. keeps $-0.02 as profit after all expenses.
Operating Margin
Core operations generate 0.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.17 in profit for every $100 of shareholder equity.
ROA
Molina Healthcare, Inc. generates $-0.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Molina Healthcare, Inc. generates limited operating cash flow of $371.40M, signaling weaker underlying cash strength.
Free Cash Flow
Molina Healthcare, Inc. generates weak or negative free cash flow of $275.75M, restricting financial flexibility.
FCF Per Share
Each share generates $5.28 in free cash annually.
FCF Yield
MOH converts 2.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1272.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MOH Stacks Against Its Sector Peers
| Metric | MOH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1272.12 | 31.56 | Worse (Expensive) |
| ROE | -0.17% | 441.00% | Weak |
| Net Margin | -0.02% | 18300.00% | Weak |
| Debt/Equity | 0.95 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.68 | 5.63 | Neutral |
| ROA | -0.04% | 1512.00% | Weak |
MOH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Molina Healthcare, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
171.66%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-18.54%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-132.88%
Industry Style: Defensive, Growth, Innovation
Declining