Molina Healthcare, Inc.
Molina Healthcare, Inc. Fundamental Analysis
Molina Healthcare, Inc. (MOH) shows weak financial fundamentals with a PE ratio of 48.69, profit margin of 0.42%, and ROE of 4.44%. The company generates $46.0B 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 42.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D 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 48.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MOH's PEG of -0.58 indicates potential undervaluation.
Price to Book
The market values Molina Healthcare, Inc. at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.37 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 $0.42 as profit after all expenses.
Operating Margin
Core operations generate 1.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.44 in profit for every $100 of shareholder equity.
ROA
Molina Healthcare, Inc. generates $1.15 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 $364.64M, signaling weaker underlying cash strength.
Free Cash Flow
Molina Healthcare, Inc. generates weak or negative free cash flow of $256.37M, restricting financial flexibility.
FCF Per Share
Each share generates $4.92 in free cash annually.
FCF Yield
MOH converts 2.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MOH Stacks Against Its Sector Peers
| Metric | MOH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.69 | 28.92 | Worse (Expensive) |
| ROE | 4.44% | 643.00% | Weak |
| Net Margin | 0.42% | -45024.00% (disorted) | Weak |
| Debt/Equity | 0.97 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.63 | 4.50 | Neutral |
| ROA | 1.15% | -16474.00% (disorted) | 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