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HCA Healthcare

NYSE:HCA
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCA
NYSE
$43B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

HCA Healthcare, Inc., through its subsidiaries, provides health care services. The last earnings update was 64 days ago. More info.


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HCA Share Price and Events
7 Day Returns
8.1%
NYSE:HCA
1.8%
US Healthcare
0.9%
US Market
1 Year Returns
29.4%
NYSE:HCA
-2.8%
US Healthcare
9.6%
US Market
HCA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HCA Healthcare (HCA) 8.1% -3.2% -6.3% 29.4% 54.5% 140.1%
US Healthcare 1.8% -5.2% -9.7% -2.8% 13.1% 63.8%
US Market 0.9% 4.6% 10.9% 9.6% 39% 47.2%
1 Year Return vs Industry and Market
  • HCA outperformed the Healthcare industry which returned -2.8% over the past year.
  • HCA outperformed the Market in United States of America which returned 9.6% over the past year.
Price Volatility
HCA
Industry
5yr Volatility vs Market

Value

 Is HCA Healthcare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HCA Healthcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HCA Healthcare.

NYSE:HCA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HCA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.716 (1 + (1- 21%) (76.71%))
1.1
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.1 * 5.96%)
9.29%

Discounted Cash Flow Calculation for NYSE:HCA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HCA Healthcare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HCA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.29%)
2019 3,077.35 Analyst x7 2,815.82
2020 3,311.64 Analyst x8 2,772.69
2021 2,973.00 Analyst x3 2,277.62
2022 4,122.00 Analyst x1 2,889.51
2023 4,394.93 Est @ 6.62% 2,819.01
2024 4,634.62 Est @ 5.45% 2,720.12
2025 4,849.52 Est @ 4.64% 2,604.36
2026 5,046.63 Est @ 4.06% 2,479.90
2027 5,231.56 Est @ 3.66% 2,352.30
2028 5,408.59 Est @ 3.38% 2,225.23
Present value of next 10 years cash flows $25,956.56
NYSE:HCA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $5,408.59 × (1 + 2.73%) ÷ (9.29% – 2.73%)
$84,729.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $84,729.52 ÷ (1 + 9.29%)10
$34,859.79
NYSE:HCA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $25,956.56 + $34,859.79
$60,816.34
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $60,816.34 / 343.51
$177.04
NYSE:HCA Discount to Share Price
Calculation Result
Value per share (USD) From above. $177.04
Current discount Discount to share price of $124.56
= -1 x ($124.56 - $177.04) / $177.04
29.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HCA Healthcare is available for.
Intrinsic value
30%
Share price is $124.56 vs Future cash flow value of $177.04
Current Discount Checks
For HCA Healthcare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HCA Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HCA Healthcare's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HCA Healthcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HCA Healthcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HCA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $10.90
NYSE:HCA Share Price ** NYSE (2019-04-25) in USD $124.56
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 21.81x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HCA Healthcare.

NYSE:HCA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HCA Share Price ÷ EPS (both in USD)

= 124.56 ÷ 10.90

11.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCA Healthcare is good value based on earnings compared to the US Healthcare industry average.
  • HCA Healthcare is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does HCA Healthcare's expected growth come at a high price?
Raw Data
NYSE:HCA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
3.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.52x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:HCA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.42x ÷ 3.6%

3.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCA Healthcare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HCA Healthcare's assets?
Raw Data
NYSE:HCA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-14.44
NYSE:HCA Share Price * NYSE (2019-04-25) in USD $124.56
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.39x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:HCA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HCA Share Price ÷ Book Value per Share (both in USD)

= 124.56 ÷ -14.44

-8.63x

* Primary Listing of HCA Healthcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCA Healthcare has negative assets, we can't compare the value of its assets to the US Healthcare industry average.
X
Value checks
We assess HCA Healthcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. HCA Healthcare has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HCA Healthcare expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HCA Healthcare expected to grow at an attractive rate?
  • HCA Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HCA Healthcare's earnings growth is positive but not above the United States of America market average.
  • HCA Healthcare's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HCA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HCA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 3.6%
NYSE:HCA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 6%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HCA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HCA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 57,972 8,344 4,214 1
2021-12-31 56,208 7,584 4,139 9
2020-12-31 53,569 7,149 3,845 21
2019-12-31 50,771 6,616 3,520 24
NYSE:HCA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 46,677 6,761 3,787
2018-09-30 45,965 6,320 3,197
2018-06-30 45,210 5,607 2,864
2018-03-31 44,414 5,446 2,701
2017-12-31 43,614 5,426 2,216
2017-09-30 42,693 5,391 2,662
2017-06-30 42,267 5,589 2,854
2017-03-31 41,853 5,534 2,855
2016-12-31 41,490 5,653 2,890
2016-09-30 41,098 5,512 2,552
2016-06-30 40,684 5,407 2,383
2016-03-31 40,262 5,115 2,232

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HCA Healthcare's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
  • HCA Healthcare's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HCA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from HCA Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 14.06 14.06 14.06 1.00
2021-12-31 12.28 12.90 11.83 6.00
2020-12-31 11.12 11.93 10.61 13.00
2019-12-31 10.02 10.30 9.78 13.00
NYSE:HCA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 10.90
2018-09-30 9.15
2018-06-30 8.11
2018-03-31 7.56
2017-12-31 6.12
2017-09-30 7.25
2017-06-30 7.67
2017-03-31 7.57
2016-12-31 7.53
2016-09-30 6.52
2016-06-30 5.95
2016-03-31 5.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if HCA Healthcare will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess HCA Healthcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HCA Healthcare has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HCA Healthcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HCA Healthcare's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HCA Healthcare's year on year earnings growth rate has been positive over the past 5 years.
  • HCA Healthcare's 1-year earnings growth exceeds its 5-year average (70.9% vs 14.2%)
  • HCA Healthcare's earnings growth has exceeded the US Healthcare industry average in the past year (70.9% vs 7.3%).
Earnings and Revenue History
HCA Healthcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HCA Healthcare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 46,677.00 3,787.00
2018-09-30 45,965.00 3,197.00
2018-06-30 45,210.00 2,864.00
2018-03-31 44,414.00 2,701.00
2017-12-31 43,614.00 2,216.00
2017-09-30 42,693.00 2,662.00
2017-06-30 42,267.00 2,854.00
2017-03-31 41,853.00 2,855.00
2016-12-31 41,490.00 2,890.00
2016-09-30 41,098.00 2,552.00
2016-06-30 40,684.00 2,383.00
2016-03-31 40,262.00 2,232.00
2015-12-31 39,678.00 2,129.00
2015-09-30 39,065.00 2,074.00
2015-06-30 38,429.00 2,143.00
2015-03-31 37,762.00 2,119.00
2014-12-31 36,918.00 1,875.00
2014-09-30 36,118.00 1,772.00
2014-06-30 35,354.00 1,619.00
2014-03-31 34,574.00 1,559.00
2013-12-31 34,182.00 1,556.00
2013-09-30 33,780.00 1,446.00
2013-06-30 33,386.00 1,441.00
2013-03-31 33,048.00 1,409.00
2012-12-31 33,013.00 1,605.00
2012-09-30 32,348.00 3,226.00
2012-06-30 31,544.00 2,927.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if HCA Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • HCA Healthcare used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • HCA Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HCA Healthcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HCA Healthcare has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HCA Healthcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HCA Healthcare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HCA Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HCA Healthcare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of HCA Healthcare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • HCA Healthcare has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HCA Healthcare Company Filings, last reported 3 months ago.

NYSE:HCA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -2,918.00 32,821.00 549.00
2018-09-30 -3,730.00 33,107.00 624.00
2018-06-30 -4,125.00 33,192.00 913.00
2018-03-31 -4,434.00 33,291.00 1,130.00
2017-12-31 -4,995.00 33,058.00 786.00
2017-09-30 -5,066.00 32,956.00 771.00
2017-06-30 -5,079.00 31,666.00 754.00
2017-03-31 -5,357.00 31,522.00 803.00
2016-12-31 -5,633.00 31,388.00 695.00
2016-09-30 -6,163.00 31,524.00 726.00
2016-06-30 -6,498.00 31,576.00 817.00
2016-03-31 -5,999.00 30,674.00 904.00
2015-12-31 -6,046.00 30,598.00 791.00
2015-09-30 -5,812.00 29,905.00 639.00
2015-06-30 -5,955.00 29,904.00 750.00
2015-03-31 -6,222.00 29,634.00 681.00
2014-12-31 -6,498.00 29,625.00 630.00
2014-09-30 -6,018.00 28,687.00 581.00
2014-06-30 -6,588.00 29,247.00 727.00
2014-03-31 -6,467.00 29,197.00 922.00
2013-12-31 -6,928.00 28,671.00 476.00
2013-09-30 -7,044.00 28,700.00 547.00
2013-06-30 -7,485.00 28,525.00 528.00
2013-03-31 -8,012.00 29,011.00 719.00
2012-12-31 -8,341.00 29,359.00 760.00
2012-09-30 -6,563.00 27,399.00 533.00
2012-06-30 -6,943.00 27,481.00 644.00
  • HCA Healthcare has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if HCA Healthcare's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (20.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess HCA Healthcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HCA Healthcare has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.28%
Current annual income from HCA Healthcare dividends. Estimated to be 0.82% next year.
If you bought $2,000 of HCA Healthcare shares you are expected to receive $26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HCA Healthcare's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • HCA Healthcare's dividend is below the markets top 25% of dividend payers in United States of America (3.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HCA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HCA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.84 6.00
2020-12-31 1.62 5.00
2019-12-31 0.93 10.00
NYSE:HCA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 1.600 1.227
2019-01-29 1.600 1.139
2018-07-25 1.400 1.060
2018-05-08 1.400 1.335
2018-05-01 1.400 1.442
2018-02-23 1.400 1.416
2018-01-30 1.400 1.406

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether HCA Healthcare has stable dividend payments.
  • HCA Healthcare only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of HCA Healthcare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.8x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of HCA Healthcare's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess HCA Healthcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HCA Healthcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HCA Healthcare has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HCA Healthcare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sam Hazen
COMPENSATION $10,006,950
AGE 58
TENURE AS CEO 0.3 years
CEO Bio

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 and Chief Operating Officer at HCA Healthcare Inc. (formerly known as HCA Holdings, Inc.) since November 16, 2016. Mr. Hazen has been the President of Operations at HCA Inc. since February 9, 2011. Mr. Hazen serves as the President of Samaritan LLC, General Partner of Good Samaritan Hospital, L.P. He serves as the Principal Executive Officer and President of Ogden Regional Medical Center. He serves as an Executive Director at Ogden Tomotherapy, LLC. He has been Principal Executive Officer and President of Green Oaks Hospital Subsidiary, L.P., since May 2009. He serves as Principal Executive Officer and President of Conroe Hospital Corporation-general partner of Chca Conroe. He serves as the Principal Executive Officer and President of WHMC Inc. - General Partner of CHCA West Houston, L.P. He serves as the Principal Executive Officer and President of San Jose Medical Center LLC - General Partner of San Jose Hospital, L.P. He serves as the Principal Executive Officer and President of Pasadena Bayshore Hospital Inc. - General Partner of CHCA Bayshore, L.P. Mr. Hazen serves as the Principal Executive Officer of Woman's Hospital of Texas Incorporated and President of Woman's Hospital of Texas Incorporated of CHCA Woman's Hospital, L.P. He serves as the Principal Executive Officer and President of Brownsville-Valley Regional Medical Center Inc. -general partner of Columbia Valley Healthcare System, L.P. He was the President at West Valley Medical Center, Inc. and was its Principal Executive Officer. He served as the Chief Operating Officer at HCA Holdings, Inc. since January 2015 until November 16, 2016 and served as its President of Operations from February 9, 2011 to January 2015 and President of Western Group from July 2001 to February 9, 2011. He served as the Principal Executive Officer and President of Danforth Hospital Inc. - General Partner of CHCA Mainland L.P. He served as President of Western Group of HCA from July 2001 to February 9, 2011. He serves as Chief Operating Officer and President at St. Mark’s Lone Peak Hospital, Inc. He served as the Principal Executive Officer and President of HCA Health Services Of Oklahoma Inc., Los Robles Regional Medical Center, Brigham City Community Hospital, Encino Hospital Corporation Inc., Sunrise Mountainview Hospital, Inc., St. Mark's Lone Peak Hospital, Inc., Columbine Psychiatric Center, Inc., Columbia Riverside, Inc., Columbia Medical Center Of Lewisville Subsidiary, L.P., Mountain View Hospital, Inc., San Jose, LLC and Columbia Ogden Medical Center, Inc. He served as the Principal Executive Officer and President of Kph-Consolidation, Inc. He served as President and Principal Executive Officer at Eastern Idaho Health Services, Inc. He served as Principal Executive Officer and President of Los Robles Hospital and Medical Center. Mr. Hazen served as the Chief Financial Officer of Western Group at HCA Inc. from August 1995 to July 2001. He served as the Chief Financial Officer, North Texas Division of HCA Inc. from February 1994 to July 1995. Prior to that, he served in various hospital and regional Chief Financial Officer at Humana Inc. and Galen Health Care, Inc. Mr. Hazen began his career in Humana's Financial Management Training Program in 1983. He served as the Chief Financial Officer of hospitals in Georgia and Nevada and as a Regional Chief Financial Officer in Kentucky. Mr. Hazen serves as a Director of Nashville Health Care Council. He served as a Trustee of Adventure Science Center. Mr. Hazen earned his Bachelor Degree in Finance from University of Kentucky in 1982 and his Master Degree in Business Administration from University of Nevada, Las Vegas in 1988.

CEO Compensation
  • Sam's compensation has been consistent with company performance over the past year.
  • Sam's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HCA Healthcare management team in years:

5.8
Average Tenure
58
Average Age
  • The average tenure for the HCA Healthcare management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Sam Hazen

TITLE
CEO & Director
COMPENSATION
$10M
AGE
58
TENURE
0.3 yrs

Bill Rutherford

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
54
TENURE
5.3 yrs

Chuck Hall

TITLE
President of National Group
COMPENSATION
$4M
AGE
65
TENURE
8.2 yrs

Jon Foster

TITLE
President of American Group
COMPENSATION
$5M
AGE
56
TENURE
6.3 yrs

Thomas Frist

TITLE
Founder & Chairman Emeritus
COMPENSATION
$362K
AGE
79

P. Paslick

TITLE
Senior VP & Chief Information Officer
AGE
58
TENURE
6.8 yrs

W. Kimbrough

TITLE
Vice President of Investor Relations

Bob Waterman

TITLE
Senior VP & General Counsel
COMPENSATION
$1M
AGE
64
TENURE
21.4 yrs

Kathi Whalen

TITLE
Senior VP and Chief Ethics & Compliance Officer
AGE
54
TENURE
0.3 yrs

Deborah Reiner

TITLE
Senior Vice President of Marketing & Communications
AGE
56
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the HCA Healthcare board of directors in years:

5.9
Average Tenure
61
Average Age
  • The tenure for the HCA Healthcare board of directors is about average.
Board of Directors

R. Johnson

TITLE
Chairman of the Board
COMPENSATION
$21M
AGE
61
TENURE
4.3 yrs

Sam Hazen

TITLE
CEO & Director
COMPENSATION
$10M
AGE
58
TENURE
0.6 yrs

Thomas Frist

TITLE
Founder & Chairman Emeritus
COMPENSATION
$362K
AGE
79

Chad Holliday

TITLE
Independent Director
COMPENSATION
$344K
AGE
70
TENURE
3 yrs

Tommy Frist

TITLE
Director
COMPENSATION
$299K
AGE
50
TENURE
13.3 yrs

Geoffrey Meyers

TITLE
Independent Director
COMPENSATION
$322K
AGE
74
TENURE
8.1 yrs

Wayne Riley

TITLE
Independent Director
COMPENSATION
$324K
AGE
58
TENURE
7.3 yrs

Annie Lamont

TITLE
Independent Director
COMPENSATION
$309K
AGE
61
TENURE
5.9 yrs

Mike Michelson

TITLE
Independent Director
COMPENSATION
$349K
AGE
67
TENURE
1.3 yrs

Billy Frist

TITLE
Director
COMPENSATION
$292K
AGE
48
TENURE
10.3 yrs
Who owns this company?
Recent Insider Trading
  • HCA Healthcare insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Feb 19 Sell John Steele Individual 12. Feb 19 12. Feb 19 -33,670 $140.05 $-4,715,531
14. Feb 19 Sell Kathryn Torres Individual 12. Feb 19 12. Feb 19 -8,368 $139.47 $-1,167,086
14. Feb 19 Sell Jon Foster Individual 13. Feb 19 13. Feb 19 -11,640 $140.89 $-1,639,913
12. Feb 19 Sell J. William Morrow Individual 07. Feb 19 07. Feb 19 -263 $140.60 $-36,979
08. Feb 19 Sell Kathleen Whalen Individual 06. Feb 19 06. Feb 19 -200 $139.48 $-27,896
01. Feb 19 Sell J. William Morrow Individual 30. Jan 19 30. Jan 19 -3,224 $137.19 $-442,302
01. Feb 19 Sell Sandra Morgan Individual 26. Jul 18 26. Jul 18 -1,913 $122.29 $-233,942
15. Nov 18 Sell Kathryn Torres Individual 13. Nov 18 13. Nov 18 -820 $142.36 $-116,732
17. Aug 18 Sell Jane Englebright Individual 15. Aug 18 15. Aug 18 -6,543 $129.86 $-849,688
08. Aug 18 Sell Victor Campbell Individual 03. Aug 18 03. Aug 18 -22,782 $128.00 $-2,896,096
30. Jul 18 Sell Michael Cuffe Individual 30. Jul 18 30. Jul 18 -589 $125.26 $-73,776
X
Management checks
We assess HCA Healthcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HCA Healthcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why We Like HCA Healthcare, Inc.’s (NYSE:HCA) 21% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

If You Had Bought HCA Healthcare (NYSE:HCA) Shares Five Years Ago You'd Have Made 178%

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, HCA Healthcare achieved compound earnings per share (EPS) growth of 26% per year. … This EPS growth is reasonably close to the 23% average annual increase in the share price.

Simply Wall St -

What Should You Know About HCA Healthcare, Inc.'s (NYSE:HCA) Future?

The latest earnings announcement HCA Healthcare, Inc. … (NYSE:HCA) released in December 2018a … indicated

Simply Wall St -

Should You Buy HCA Healthcare, Inc. (NYSE:HCA) For Its 1.2% Dividend?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … 5 questions to ask before buying a dividend stock … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

Is HCA Healthcare, Inc.'s (NYSE:HCA) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … HCA Healthcare has a price to earnings ratio of 13.22, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Do Investors Need To Know About HCA Healthcare, Inc.'s (NYSE:HCA) Future?

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Based on HCA Healthcare, Inc.'s (NYSE:HCA) recently announced earnings update on 31 December 2018,

Simply Wall St -

Have Insiders Been Selling HCA Healthcare, Inc. (NYSE:HCA) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in HCA Healthcare, Inc. … As a general rule we consider it to be discouraging when insiders are selling below the current price

Simply Wall St -

HCA Healthcare Inc (NYSE:HCA) Is Trading At A 20.05% Discount

I am going to run you through how I calculated the intrinsic value of HCA Healthcare Inc (NYSE:HCA). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

HCA Healthcare Inc (NYSE:HCA): A Real Look At Price-To-Earnings

The 14.13x trailing PE given to HCA means investors are paying a discount to the US Healthcare industry (21.92x PE) for earnings. … But can investors make a closing judgement of the company’s value based on this multiple? … The answer is no, since important variables like the company’s potential to grow and debt levels are ignored in the PE’s calculation.

Simply Wall St -

Should You Buy HCA Healthcare Inc (NYSE:HCA) At This PE Ratio?

and want to begin learning the link between HCA Healthcare Inc (NYSE:HCA)’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Company Info

Description

HCA Healthcare, Inc., through its subsidiaries, provides health care services. The company operates general, acute care hospitals that offer 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 services. It also operates psychiatric hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, and adolescent and adult alcohol and drug abuse treatment and counseling. In addition, the company 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. As of December 31, 2018, it owned and operated 179 hospitals and 123 freestanding surgery centers located in 20 states and the United Kingdom. The company was formerly known as HCA Holdings, Inc. HCA Healthcare, Inc. was founded in 1968 and is headquartered in Nashville, Tennessee.

Details
Name: HCA Healthcare, Inc.
HCA
Exchange: NYSE
Founded: 1968
$42,787,800,287
343,511,563
Website: http://www.hcahealthcare.com
Address: HCA Healthcare, Inc.
One Park Plaza,
Nashville,
Tennessee, 37203,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HCA Common Shares New York Stock Exchange US USD 10. Mar 2011
DB 2BH Common Shares Deutsche Boerse AG DE EUR 10. Mar 2011
MUN 2BH Common Shares Boerse Muenchen DE EUR 10. Mar 2011
LSE 0J1R Common Shares London Stock Exchange GB USD 10. Mar 2011
BMV HCA * Common Shares Bolsa Mexicana de Valores MX MXN 10. Mar 2011
Number of employees
Current staff
Staff numbers
229,000
HCA Healthcare employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 02:39
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/24
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.