Molina Healthcare, Inc. (MOH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alignment Healthcare, Inc.

Elevance Health, Inc.

UnitedHealth Group, Inc.

The Cigna Group

Molina Healthcare, Inc.

NeueHealth, Inc.

Centene Corp.

Humana, Inc.

Oscar Health, Inc.

Interpace Biosciences, Inc.

Why is Molina Healthcare, Inc. ?

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at 23.93%
DEBT-EQUITY RATIO (HY) Highest at -20.33 %
INTEREST(Q) Highest at USD 48 MM

With ROE of 27.29%, it has a fair valuation with a 3.73 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -44.42%, its profits have risen by 9.8% ; the PEG ratio of the company is 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.42% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Healthcare Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Molina Healthcare, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Molina Healthcare, Inc.

-56.03%

-0.88

52.33%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.68%

EBIT Growth (5y)

14.87%

EBIT to Interest (avg)

-0.07

Debt to EBITDA (avg)

16.10

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

5.47

Tax Ratio

25.57%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

27.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.85

EV to EBIT

EV to EBITDA

15.74

EV to Capital Employed

-7.56

EV to Sales

0.07

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

11.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-35What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -535 MM

ROCE(HY)

Lowest at 11.02%

DEBT-EQUITY RATIO (HY)

Highest at -5.58 %

INTEREST COVERAGE RATIO(Q)

Lowest at 84.62

INTEREST(Q)

Highest at USD 52 MM

OPERATING PROFIT(Q)

Lowest at USD -162 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.42 %

PRE-TAX PROFIT(Q)

Lowest at USD -214 MM

NET PROFIT(Q)

Lowest at USD -160 MM

EPS(Q)

Lowest at USD -3.14

Here's what is working for Molina Healthcare, Inc.

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Molina Healthcare, Inc.

Pre-Tax Profit

At USD -214 MM has Fallen at -161.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -160 MM has Fallen at -163.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -535 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 84.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -5.58 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 52 MM

in the last five periods and Increased by 6.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD -162 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -1.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -214 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -160 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -3.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)