NYSE:HCA

Stock Analysis Report

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Executive Summary

HCA Healthcare, Inc., through its subsidiaries, operates as a health care services company in the United States. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has HCA Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HCA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

HCA

0.3%

US Healthcare

-2.4%

US Market


1 Year Return

37.9%

HCA

16.7%

US Healthcare

31.2%

US Market

Return vs Industry: HCA exceeded the US Healthcare industry which returned 16.7% over the past year.

Return vs Market: HCA exceeded the US Market which returned 31.2% over the past year.


Shareholder returns

HCAIndustryMarket
7 Day0.7%0.3%-2.4%
30 Day6.3%-2.1%-3.0%
90 Day11.8%-1.9%3.2%
1 Year37.9%37.9%18.2%16.7%34.1%31.2%
3 Year76.5%72.3%39.1%33.4%48.1%38.6%
5 Year151.1%144.2%78.5%65.4%116.5%92.3%

Long-Term Price Volatility Vs. Market

How volatile is HCA Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HCA Healthcare undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCA ($176.34) is trading below our estimate of fair value ($237.02)

Significantly Below Fair Value: HCA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HCA is good value based on its PE Ratio (15.9x) compared to the US Healthcare industry average (21.8x).

PE vs Market: HCA is good value based on its PE Ratio (15.9x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: HCA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: HCA is overvalued based on its PB Ratio (104.6x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is HCA Healthcare forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCA's forecast earnings growth (7.8% per year) is above the savings rate (2%).

Earnings vs Market: HCA's earnings (7.8% per year) are forecast to grow slower than the US market (19.5% per year).

High Growth Earnings: HCA's earnings are forecast to grow, but not significantly.

Revenue vs Market: HCA's revenue (5.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: HCA's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCA's Return on Equity is forecast to be very high in 3 years time (165.6%).


Next Steps

Past Performance

How has HCA Healthcare performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCA has high quality earnings.

Growing Profit Margin: HCA's current net profit margins (7.3%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: HCA's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: HCA's earnings growth over the past year (7.3%) is below its 5-year average (9.4% per year).

Earnings vs Industry: HCA earnings growth over the past year (7.3%) underperformed the Healthcare industry 16.5%.


Return on Equity

High ROE: Whilst HCA's Return on Equity (151.69%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is HCA Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: HCA's short term assets ($12.3B) exceed its short term liabilities ($8.7B).

Long Term Liabilities: HCA's short term assets ($12.3B) do not cover its long term liabilities ($35.9B).


Debt to Equity History and Analysis

Debt Level: HCA's debt to equity ratio (1052.1%) is considered high.

Reducing Debt: HCA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HCA's debt is well covered by operating cash flow (30.3%).

Interest Coverage: HCA's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is HCA Healthcare current dividend yield, its reliability and sustainability?

1.09%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HCA's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: HCA's dividend (1.09%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: HCA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HCA's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.9%), HCA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HCA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Sam Hazen (60 yo)

2.17yrs

Tenure

US$26,788,251

Compensation

Mr. Samuel N. Hazen, also known as Sam, serves as Chief Executive Officer of HCA Healthcare Inc. since January 01, 2019 and has been its Director since September 10, 2018. Mr. Hazen served as the President...


CEO Compensation Analysis

Compensation vs Market: Sam's total compensation ($USD26.79M) is above average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: Sam's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Hazen
CEO & Director2.17yrsUS$26.79m0.33%
$ 196.1m
William Rutherford
Executive VP & CFO7.17yrsUS$6.32m0.038%
$ 22.6m
Jonathan Perlin
President of Clinical Services Group & Chief Medical Officer13.33yrsUS$5.99m0.054%
$ 32.3m
Charles Hall
President of National Group10.08yrsUS$6.51m0.065%
$ 38.9m
Jon Foster
President of American Group8.17yrsUS$7.76m0.035%
$ 20.8m
Thomas Frist
Founder & Chairman Emeritusno dataUS$362.11k0.11%
$ 68.7m
P. Paslick
Senior VP & Chief Information Officer8.75yrsno data0.041%
$ 24.8m
W. Kimbrough
Vice President of Investor Relationsno datano datano data
Robert Waterman
Senior VP & General Counsel23.33yrsUS$1.45m0.082%
$ 49.2m
Kathleen Whalen
Senior VP and Chief Ethics & Compliance Officer2.17yrsno data0.0029%
$ 1.7m
Deborah Reiner
Senior Vice President of Marketing & Communications3.42yrsno data0.0029%
$ 1.8m
David Anderson
Principal Financial Officer21.67yrsno datano data

8.5yrs

Average Tenure

60yo

Average Age

Experienced Management: HCA's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samuel Hazen
CEO & Director2.17yrsUS$26.79m0.33%
$ 196.1m
Thomas Frist
Founder & Chairman Emeritusno dataUS$362.11k0.11%
$ 68.7m
Charles Holliday
Independent Director4.92yrsUS$368.36k0.0046%
$ 2.7m
Michael Michelson
Independent Director3.17yrsUS$320.15k0.0011%
$ 647.4k
Robert Dennis
Independent Director7.08yrsUS$304.97k0.0012%
$ 719.3k
Nancy-Ann DeParle
Independent Director7.08yrsUS$315.15k0.0047%
$ 2.8m
Thomas Frist
Chairman of the Board1.92yrsUS$365.24k0.0016%
$ 935.1k
Meg Crofton
Independent Director2yrsUS$310.94k0.00096%
$ 575.4k
Wayne Riley
Independent Director9.17yrsUS$332.56k0.0032%
$ 1.9m
William Frist
Director12.17yrsUS$294.97k0.12%
$ 72.5m
John McWilliams
Director of HealthONEno datano datano data

4.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HCA's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HCA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HCA Healthcare, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HCA Healthcare, Inc.
  • Ticker: HCA
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$59.941b
  • Shares outstanding: 339.92m
  • Website: https://www.hcahealthcare.com

Number of Employees


Location

  • HCA Healthcare, Inc.
  • One Park Plaza
  • Nashville
  • Tennessee
  • 37203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCANYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 2011
2BHDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2011
HCA *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMar 2011
0J1RLSE (London Stock Exchange)YesCommon SharesGBUSDMar 2011
2BHETLX (Eurotlx)YesCommon SharesITEURMar 2011
H1CA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLDec 2019

Biography

HCA Healthcare, Inc., through its subsidiaries, operates as a health care services company in the United States. The company operates general, acute care hospitals that offer medical and surgical services,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 00:09
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.