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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Cigna Group

Alignment Healthcare, Inc.

Elevance Health, Inc.

UnitedHealth Group, Inc.

Humana, Inc.

Centene Corp.

Molina Healthcare, Inc.

NeueHealth, Inc.

Oscar Health, 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 -52.20%, 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 -52.20% 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.

-51.72%

-0.99

52.35%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.68%

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)

5.48

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

3.73

EV to EBIT

EV to EBITDA

54.87

EV to Capital Employed

-7.36

EV to Sales

0.25

PEG Ratio

0.88

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

27.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

3What is working for the Company

NET SALES(Q)

Highest at USD 11,427 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-16What is not working for the Company

ROCE(HY)

Lowest at 23.93%

DEBT-EQUITY RATIO (HY)

Highest at -20.33 %

INTEREST(Q)

Highest at USD 48 MM

OPERATING PROFIT(Q)

Lowest at USD 373 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.26 %

PRE-TAX PROFIT(Q)

Lowest at USD 325 MM

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

Net Sales

Highest at USD 11,427 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

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

Depreciation

Highest at USD 58 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Interest

At USD 48 MM has Grown at 11.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at -20.33 % 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 48 MM

in the last five periods and Increased by 11.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 373 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 3.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 325 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)