Molina Healthcare Inc (MOH, Financial), a leading player in the Healthcare Plans industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $20.32 billion and a price of $348.53, the company's stock has gained 6.27% over the past week and a remarkable 15.04% over the past three months. This performance is reflected in the company's GF Value, which stands at $374.53, up from $369.51 three months ago. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the stock is considered fairly valued, an improvement from being modestly undervalued three months ago.
Company Overview: Molina Healthcare Inc
Molina Healthcare Inc operates in the Healthcare Plans industry, offering healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). In addition to its Health Plans segment, Molina has a Medicaid, Medicare, and Marketplace segment that represent the government-funded or sponsored programs under their management information systems. Molina's Medicaid plans receive revenue on a per-member per-month basis from state government agencies, and its Medicare Advantage plans receive revenue from managed care plans that contract with the Centers for Medicaid and Medicare (CMS). Molina also provides plans through health insurance exchanges.
Profitability Analysis
Molina Healthcare Inc has a Profitability Rank of 8/10, indicating a strong profitability profile. The company's operating margin of 4.72% is better than 60% of the companies in the industry. Its ROE, ROA, and ROIC, standing at 27.72%, 6.95%, and 41.23% respectively, are all better than the majority of the companies in the industry. Furthermore, the company has maintained profitability for 9 out of the past 10 years, outperforming 42.86% of the companies in the industry.
Growth Prospects
The company's Growth Rank stands at 5/10. Its 3-year and 5-year revenue growth rate per share are 27.80% and 11.90% respectively, outperforming a significant number of companies in the industry. The company's total revenue growth rate for the next 3 to 5 years is estimated at 8.14%, better than 45.45% of the companies in the industry. Additionally, the company's 3-year EPS without NRI growth rate is 12.20%, better than 70.59% of the companies in the industry.
Top Holders
The top three holders of Molina Healthcare Inc's stock are Jim Simons (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), and Chuck Royce (Trades, Portfolio), holding 1.72%, 1.25%, and 0.06% of the company's shares respectively.
Competitive Landscape
Molina Healthcare Inc operates in a competitive industry with key players such as Centene Corp (CNC, Financial) with a market cap of $38.38 billion, Alignment Healthcare Inc (ALHC, Financial) with a market cap of $1.1 billion, and Oscar Health Inc (OSCR, Financial) with a market cap of $1.27 billion.
Conclusion
In conclusion, Molina Healthcare Inc has demonstrated strong stock performance, profitability, and growth prospects. The company's stock has seen a significant surge over the past three months, and its profitability and growth ranks are commendable. The company's strong position is further reinforced by the support from top holders and its competitive standing in the industry. Given these factors, Molina Healthcare Inc presents a promising investment opportunity for the future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
