NYSE:HCA

Stock Analysis Report

Executive Summary

HCA Healthcare, Inc., through its subsidiaries, provides health care services.

Snowflake

Fundamentals

Proven track record and fair value.


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


Market Performance


7 Day Return

2.0%

HCA

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-8.2%

HCA

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: HCA matched the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: HCA underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

HCAIndustryMarket
7 Day2.0%5.8%1.8%
30 Day-2.2%2.5%-0.7%
90 Day-12.0%-1.8%0.06%
1 Year-7.1%-8.2%-5.0%-6.5%9.7%7.3%
3 Year53.5%50.2%33.9%28.6%46.3%36.9%
5 Year74.1%70.4%65.6%55.8%64.5%46.5%

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?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HCA ($122.8) is trading below our estimate of fair value ($171.04)

Significantly Undervalued: HCA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HCA is good value based on its PE Ratio (11.6x) compared to the Healthcare industry average (20.4x).

PE vs Market: HCA is good value based on its PE Ratio (11.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HCA is poor value based on its PEG Ratio (1.5x)


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 22 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCA's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: HCA's earnings (7.6% per year) are forecast to grow slower than the US market (14.6% 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 (7.3% 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

High Future ROE: Insufficient data to determine if HCA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HCA Healthcare performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HCA's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: HCA's earnings growth over the past year (27.3%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: HCA earnings growth over the past year (27.3%) exceeded the Healthcare industry 5.3%.


Return on Equity

High ROE: HCA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: HCA has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: HCA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is HCA Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: HCA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HCA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HCA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HCA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: HCA's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: HCA's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: HCA has a high level of physical assets or inventory.

Debt Coverage by Assets: HCA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HCA's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HCA's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, HCA has been paying a dividend for less than 10 years.

Growing Dividend: HCA's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.1%), 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 (3.4% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Sam Hazen (59yo)

0.8yrs

Tenure

US$10,006,950

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

Experienced Management: HCA's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HCA's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,288,17310 May 19
Jon Foster
EntityIndividual
Role
Unit President
President of American Group
Shares18,708
Max PriceUS$122.92
SellUS$4,715,53114 Feb 19
John Steele
EntityIndividual
Shares33,670
Max PriceUS$140.05
SellUS$1,167,08614 Feb 19
Kathryn Torres
EntityIndividual
Shares8,368
Max PriceUS$139.47
SellUS$1,639,91314 Feb 19
Jon Foster
EntityIndividual
Role
Unit President
President of American Group
Shares11,640
Max PriceUS$140.89
SellUS$36,97912 Feb 19
J. William Morrow
EntityIndividual
Shares263
Max PriceUS$140.60
SellUS$27,89608 Feb 19
Kathleen Whalen
EntityIndividual
Role
Chief Compliance Officer
Senior VP and Chief Ethics & Compliance Officer
Shares200
Max PriceUS$139.48
SellUS$442,30201 Feb 19
J. William Morrow
EntityIndividual
Shares3,224
Max PriceUS$137.19
SellUS$116,73215 Nov 18
Kathryn Torres
EntityIndividual
Shares820
Max PriceUS$142.36

Ownership Breakdown


Management Team

  • Thomas Frist (80yo)

    Founder & Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$362.11k
  • Bob Waterman (65yo)

    Senior VP & General Counsel

    • Tenure: 21.9yrs
    • Compensation: US$1.45m
  • W. Kimbrough

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Sam Hazen (59yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$10.01m
  • Bill Rutherford (55yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$6.80m
  • Chuck Hall (66yo)

    President of National Group

    • Tenure: 8.7yrs
    • Compensation: US$4.15m
  • Jon Foster (57yo)

    President of American Group

    • Tenure: 6.8yrs
    • Compensation: US$4.53m
  • P. Paslick (59yo)

    Senior VP & Chief Information Officer

    • Tenure: 7.3yrs
  • Deborah Reiner (57yo)

    Senior Vice President of Marketing & Communications

    • Tenure: 2yrs
  • Kathi Whalen (55yo)

    Senior VP and Chief Ethics & Compliance Officer

    • Tenure: 0.8yrs

Board Members

  • Thomas Frist (80yo)

    Founder & Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$362.11k
  • Chad Holliday (71yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$344.06k
  • Geoffrey Meyers (75yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$321.74k
  • Mike Michelson (68yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$349.03k
  • Sam Hazen (59yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$10.01m
  • Bob Dennis (65yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$298.53k
  • Nancy-Ann DeParle (62yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$298.53k
  • Tommy Frist (51yo)

    Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: US$299.24k
  • Wayne Riley (59yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$324.24k
  • Billy Frist (49yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$291.74k

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$41.873b
  • Shares outstanding: 340.98m
  • 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

Biography

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, intensi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:06
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.