company background image
HCA

HCA Healthcare NYSE:HCA Stock Report

Last Price

US$183.79

Market Cap

US$52.8b

7D

-4.0%

1Y

-25.8%

Updated

02 Oct, 2022

Data

Company Financials +

HCA Healthcare, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HCA Healthcare
Historical stock prices
Current Share PriceUS$183.79
52 Week HighUS$279.02
52 Week LowUS$164.47
Beta1.73
1 Month Change-8.12%
3 Month Change4.99%
1 Year Change-25.83%
3 Year Change56.26%
5 Year Change139.81%
Change since IPO492.49%

Recent News & Updates

Sep 23
Does HCA Healthcare (NYSE:HCA) Deserve A Spot On Your Watchlist?

Does HCA Healthcare (NYSE:HCA) Deserve A Spot On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Sep 05
HCA Healthcare (NYSE:HCA) Is Reinvesting To Multiply In Value

HCA Healthcare (NYSE:HCA) Is Reinvesting To Multiply In Value

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...

Aug 06

Bireme Capital - HCA Healthcare: Quite Cheap Despite Many Competitive Advantages

HCA Healthcare, at 10x 2022 earnings at 6/30/22, is quite cheap despite having many competitive advantages. HCA is on track to generate about $60b in revenue for 2022. The stock has appreciated ~230% since our initial purchases, but trades at a lower earnings multiple today due to excellent business results. HCA remains a large position for our firm. The following segment was excerpted from this fund letter. HCA Healthcare (HCA) HCA, at 10x 2022 earnings at 6/30/22, is quite cheap despite having many competitive advantages. HCA is the world’s largest hospital company, with 182 hospitals, 125 ambulatory surgery centers, and thousands of physician clinics. The company was started in 1968 by the Frist family, who to this day hold about $11b worth of shares in the company. HCA sees 2m patients per year and is on track to generate about $60b in revenue for 2022. We have owned the stock for years, first writing about it in 4Q17. Though it has appreciated ~230% since our initial purchases, HCA trades at a lower earnings multiple today due to excellent business results. HCA’s long-term track record is very impressive. They have methodically expanded their healthcare empire over the decades, achieving annual revenue growth of 7% and EBITDA growth of 8% since 2010. This growth has not come with a rise in share count; in fact, shares have declined from 448m in 2013 to 295m today due to repurchases. Instead, the growth has been due to the high returns on capital enjoyed by the firm, with ROIC of more than 20%.HCA’s operating results are also better than most of its peers, many of whom struggle to consistently generate free cash flow and solid returns on capital. Among nonprofits, smaller community hospitals have notoriously weak financials. Health care services businesses consistently over-index in bankruptcy filings. The industry is not for the faint of heart, but HCA has used its scale and financial strength to outperform its peers over a long period of time. And yet, the company continues to trade in line with comps such as Tenet Healthcare (THC). Tenet, which owns 80 hospitals, has closer to 10% returns on capital and 12-15% average EBITDA margins, ratios that are materially lower than HCA’s. HCA has more scale, better margins, less debt, and better occupancy ratios (70% vs 50% last quarter). We fail to see why HCA should trade at 7x EBITDA along with THC. We think it should trade much closer to (if not above) market multiples. But low valuations do have their advantages for cash-flowing companies. HCA has been no exception, with management buying back $8b worth over the past 4 quarters. At current prices, that $8b equates to a roughly 13% buyback yield. HCA remains a large position for our firm.

Shareholder Returns

HCAUS HealthcareUS Market
7D-4.0%-1.3%-2.5%
1Y-25.8%7.7%-23.2%

Return vs Industry: HCA underperformed the US Healthcare industry which returned 7.7% over the past year.

Return vs Market: HCA underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is HCA's price volatile compared to industry and market?
HCA volatility
HCA Average Weekly Movement5.6%
Healthcare Industry Average Movement7.9%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: HCA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HCA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1968244,000Sam Hazenhttps://www.hcahealthcare.com

HCA Healthcare, Inc., through its subsidiaries, provides health care services company in the United States. The company operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. It also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities.

HCA Healthcare, Inc. Fundamentals Summary

How do HCA Healthcare's earnings and revenue compare to its market cap?
HCA fundamental statistics
Market CapUS$52.75b
Earnings (TTM)US$6.51b
Revenue (TTM)US$60.11b

8.1x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HCA income statement (TTM)
RevenueUS$60.11b
Cost of RevenueUS$37.32b
Gross ProfitUS$22.78b
Other ExpensesUS$16.27b
EarningsUS$6.51b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 21, 2022

Earnings per share (EPS)22.68
Gross Margin37.90%
Net Profit Margin10.83%
Debt/Equity Ratio-3,406.6%

How did HCA perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

10%

Payout Ratio