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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.3%

HCA

-7.7%

US Healthcare

-5.3%

US Market


1 Year Return

-7.3%

HCA

10.6%

US Healthcare

10.4%

US Market

Return vs Industry: HCA underperformed the US Healthcare industry which returned 10.4% over the past year.

Return vs Market: HCA underperformed the US Market which returned 12% over the past year.


Shareholder returns

HCAIndustryMarket
7 Day-9.3%-7.7%-5.3%
30 Day-0.6%-0.8%-2.1%
90 Day-2.1%-1.2%1.7%
1 Year-6.7%-7.3%12.1%10.6%12.9%10.4%
3 Year66.7%62.2%26.1%20.8%34.3%25.4%
5 Year82.1%77.1%53.4%42.2%73.7%54.3%

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?

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCA ($123.94) is trading below our estimate of fair value ($221.12)

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 (12.3x) compared to the US Healthcare industry average (23.1x).

PE vs Market: HCA is good value based on its PE Ratio (12.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: HCA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: HCA has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCA's forecast earnings growth (9.2% per year) is above the savings rate (2.2%).

Earnings vs Market: HCA's earnings (9.2% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: HCA's revenue (5.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: HCA's revenue (5.2% 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 (133.6%).


Next Steps

Past Performance

How has HCA Healthcare performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCA has high quality earnings.

Growing Profit Margin: HCA's current net profit margins (6.7%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: HCA's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: HCA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HCA had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Healthcare industry average (31.5%).


Return on Equity

High ROE: Whilst HCA's Return on Equity (305.31%) 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 ($16.3B) exceed its short term liabilities ($14.4B).

Long Term Liabilities: HCA's short term assets ($16.3B) do not cover its long term liabilities ($35.3B).


Debt to Equity History and Analysis

Debt Level: HCA's debt to equity ratio (2354.3%) 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 (50.1%).

Interest Coverage: HCA's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.30%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HCA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HCA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HCA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Sam Hazen (60 yo)

1.75yrs

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 ($USD26.79M) is above average for companies of similar size in the US market ($USD11.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Hazen
CEO & Director1.75yrsUS$26.79m0.26%
$ 109.7m
William Rutherford
Executive VP & CFO6.75yrsUS$6.32m0.030%
$ 12.7m
Jonathan Perlin
President of Clinical Services Group & Chief Medical Officer12.92yrsUS$5.99m0.036%
$ 15.4m
Charles Hall
President of National Group9.58yrsUS$6.51m0.069%
$ 29.5m
Jon Foster
President of American Group7.75yrsUS$7.76m0.032%
$ 13.6m
Thomas Frist
Founder & Chairman Emeritusno dataUS$362.11k0.12%
$ 48.9m
P. Paslick
Senior VP & Chief Information Officer8.33yrsno data0.039%
$ 16.4m
W. Kimbrough
Vice President of Investor Relationsno datano datano data
Robert Waterman
Senior VP & General Counsel22.92yrsUS$1.45m0.080%
$ 33.9m
Kathleen Whalen
Senior VP and Chief Ethics & Compliance Officer1.75yrsno data0.0015%
$ 657.7k
Deborah Reiner
Senior Vice President of Marketing & Communications3yrsno data0.0031%
$ 1.3m
David Anderson
Principal Financial Officer21.25yrsno datano data

8.0yrs

Average Tenure

60yo

Average Age

Experienced Management: HCA's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samuel Hazen
CEO & Director1.75yrsUS$26.79m0.26%
$ 109.7m
Thomas Frist
Founder & Chairman Emeritusno dataUS$362.11k0.12%
$ 48.9m
Charles Holliday
Independent Director4.5yrsUS$368.36k0.0046%
$ 1.9m
Michael Michelson
Independent Director2.75yrsUS$320.15k0.0011%
$ 462.5k
Robert Dennis
Independent Director6.58yrsUS$304.97k0.0012%
$ 513.4k
Nancy-Ann DeParle
Independent Director6.58yrsUS$315.15k0.0047%
$ 2.0m
Thomas Frist
Chairman of the Board1.5yrsUS$365.24k0.0016%
$ 666.2k
Meg Crofton
Independent Director1.58yrsUS$310.94k0.00097%
$ 411.6k
Wayne Riley
Independent Director8.75yrsUS$332.56k0.0042%
$ 1.8m
William Frist
Director11.75yrsUS$294.97k0.12%
$ 51.6m
John McWilliams
Director of HealthONEno datano datano data

4.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HCA's board of directors are considered experienced (4.5 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$42.432b
  • Shares outstanding: 338.37m
  • 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 Analysis2020/10/30 23:33
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.