NYSE:MOH

Stock Analysis Report

Executive Summary

Molina Healthcare, Inc., a multi-state healthcare organization, provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces.

Snowflake

Fundamentals

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.5%

MOH

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-14.7%

MOH

-6.5%

US Healthcare

7.3%

US Market

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

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


Shareholder returns

MOHIndustryMarket
7 Day7.5%5.8%1.8%
30 Day5.4%2.5%-0.7%
90 Day-13.4%-1.8%0.06%
1 Year-14.7%-14.7%-5.0%-6.5%9.7%7.3%
3 Year108.6%108.6%33.9%28.6%46.3%36.9%
5 Year167.2%167.2%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MOH ($121.5) is trading below our estimate of fair value ($318.44)

Significantly Undervalued: MOH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MOH is good value based on its PE Ratio (9.5x) compared to the Healthcare industry average (20.4x).

PE vs Market: MOH is good value based on its PE Ratio (9.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MOH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MOH is overvalued based on its PB Ratio (4.4x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is Molina Healthcare forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOH's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: MOH's earnings (8.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: MOH's revenue (8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MOH's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MOH's Return on Equity is forecast to be high in 3 years time (23.1%)


Next Steps

Past Performance

How has Molina Healthcare performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MOH's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: MOH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MOH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (5.3%).


Return on Equity

High ROE: MOH's Return on Equity (45.6%) is considered outstanding.


Return on Assets

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


Return on Capital Employed

ROCE Improving: MOH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Molina Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: MOH's short term assets ($5.9B) exceeds its short term liabilities ($3.4B)

Long Term Liabilities: MOH's short term assets (5.9B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: MOH's debt to equity ratio (75.2%) is considered high

Reducing Debt: MOH's debt to equity ratio has increased from 66.7% to 75.2% over the past 5 years.

Debt Coverage: MOH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MOH's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet

Inventory Level: MOH has a low level of unsold assets or inventory.

Debt Coverage by Assets: MOH's debt is covered by short term assets (assets are 4.489280x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Joe Zubretsky (62yo)

1.9yrs

Tenure

US$15,219,770

Compensation

Mr. Joseph Michael Zubretsky, also known as Joe, has been President, Chief Executive Officer and Director of Molina Healthcare, Inc. (“Molina”) since November 6, 2017. Mr. Zubretsky served as President and ...


CEO Compensation Analysis

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

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


Management Age and Tenure

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: MOH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

65yo

Average Age

Experienced Board: MOH's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$198,57911 Jun 19
Garrey Carruthers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,300
Max PriceUS$152.75
SellUS$620,62007 Jun 19
Daniel Cooperman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,004
Max PriceUS$155.00
SellUS$458,22521 Nov 18
Charles Fedak
EntityIndividual
Shares3,795
Max PriceUS$120.74
SellUS$542,26010 Nov 18
Dale Wolf
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares4,000
Max PriceUS$135.57

Ownership Breakdown


Management Team

  • Joe Zubretsky (62yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$15.22m
  • Maurice Hebert (56yo)

    Chief Accounting Officer

    • Tenure: 1.1yrs
  • Martha Bernadett (56yo)

    Executive Vice President of Research & Development

    • Tenure: 17.8yrs
    • Compensation: US$271.45k
  • Julie Trudell

    Senior VP of Investor Relations

    • Tenure: 0.5yrs
  • Joann Zarza-Garrido

    Vice President of Compliance

    • Tenure: 13.2yrs
  • Tom Tran (62yo)

    CFO & Treasurer

    • Tenure: 1.3yrs
    • Compensation: US$3.48m
  • David Pollack

    Senior Vice President of Health Plan Operations

    • Tenure: 0yrs
  • Jeff Barlow (56yo)

    Chief Legal Officer & Secretary

    • Tenure: 9.3yrs
    • Compensation: US$4.34m
  • Mark Keim (54yo)

    Executive Vice President of Strategic Planning

    • Tenure: 1.8yrs
    • Compensation: US$3.86m
  • Larry Anderson

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Dale Wolf (65yo)

    Non-Executive Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$522.26k
  • Dan Cooperman (68yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$368.57k
  • Steve Orlando (67yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$368.52k
  • Joe Zubretsky (62yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$15.22m
  • Ronna Romney (75yo)

    Independent Vice Chair

    • Tenure: 2.8yrs
    • Compensation: US$375.02k
  • Barb Brasier (60yo)

    Independent Director

    • Tenure: 0.4yrs
  • Garrey Carruthers (79yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$355.02k
  • Dick Zoretic (60yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$144.43k
  • Richard Schapiro (63yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$366.02k

Company Information

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


Key Information

  • Name: Molina Healthcare, Inc.
  • Ticker: MOH
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$7.619b
  • Shares outstanding: 62.71m
  • Website: https://www.molinahealthcare.com

Number of Employees


Location

  • Molina Healthcare, Inc.
  • 200 Oceangate
  • Suite 100
  • Long Beach
  • California
  • 90802
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOHNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2003
MHGDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2003

Biography

Molina Healthcare, Inc., a multi-state healthcare organization, provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:48
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.