Molina Healthcare (MOH) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Molina Healthcare ( MOH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Molina Healthcare as such a stock due to the following factors:

  • MOH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.7 million.
  • MOH has traded 449,423 shares today.
  • MOH is trading at a new lifetime high.

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More details on MOH:

Molina Healthcare, Inc. provides Medicaid-related solutions to meet the health care needs of low-income families and individuals; and to assist state agencies in their administration of the Medicaid program. The company operates through two segments, Health Plans and Molina Medicaid Solutions. MOH has a PE ratio of 37.0. Currently there are 5 analysts that rate Molina Healthcare a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Molina Healthcare has been 729,200 shares per day over the past 30 days. Molina Healthcare has a market cap of $3.3 billion and is part of the health care sector and health services industry. The stock has a beta of 1.12 and a short float of 15.9% with 6.58 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Molina Healthcare as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • MOH's very impressive revenue growth greatly exceeded the industry average of 18.5%. Since the same quarter one year prior, revenues leaped by 64.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
  • MOLINA HEALTHCARE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MOLINA HEALTHCARE INC increased its bottom line by earning $1.28 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.44 versus $1.28).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 470.3% when compared to the same quarter one year prior, rising from -$9.13 million to $33.79 million.
  • Net operating cash flow has significantly increased by 179.62% to $219.06 million when compared to the same quarter last year. In addition, MOLINA HEALTHCARE INC has also vastly surpassed the industry average cash flow growth rate of 68.02%.

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