Molina Healthcare, Inc.Find Ratings Reports
MOLINA HEALTHCARE INC's gross profit margin for the second quarter of its fiscal year 2020 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. MOLINA HEALTHCARE INC has strong liquidity. Currently, the Quick Ratio is 1.81 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.97% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||4618.0||4193.0|
|Net Income ($mil)||276.0||196.0|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||5209.0||4323.0|
|Total Assets ($mil)||7876.0||6690.0|
|Total Debt ($mil)||2041.0||1630.0|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||17.15||14.72|
|Return on Assets||10.11||11.83|
|Return on Equity||39.92||45.62|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||59.0||63.0|
|Div / share||0.0||0.0|
|Book value / share||33.83||27.56|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||597004.0||809262.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.30 for the Insurance Carriers and Related Activities subsector and a significant discount compared to the S&P 500 average of 27.90. For additional comparison, its price-to-book ratio of 5.53 indicates a significant premium versus the S&P 500 average of 3.58 and a significant premium versus the subsector average of 3.65. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. The valuation analysis reveals that, MOLINA HEALTHCARE INC seems to be trading at a discount to investment alternatives.
|MOH 14.40||Peers 27.92||MOH 10.93||Peers 12.78|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
MOH is trading at a significant discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
MOH is trading at a discount to its peers.
|MOH 14.35||Peers 17.32||MOH 3.67||Peers 1.02|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
MOH is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
MOH trades at a significant premium to its peers.
|MOH 5.53||Peers 3.65||MOH 8.61||Peers 96.75|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
MOH is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MOH is expected to significantly trail its peers on the basis of its earnings growth rate.
|MOH 0.62||Peers 1.23||MOH 0.06||Peers 15.79|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
MOH is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
MOH significantly trails its peers on the basis of sales growth.