MOHMOH
US • —
$228.70
P/E
67.82
PEG
—
FCF Yield
—
Rev Growth YoY
+7.7% YoY
Gross Margin
12.9%
Health Score
6/10
D/E Ratio
0.98
Confidence
MEDIUM
Business Snapshot
Molina Healthcare, operating in the managed care industry, provides government-sponsored healthcare services primarily through Medicaid, Medicare, and Health Insurance Marketplace programs. The company serves a significant member base across multiple states through its health plans, positioning itself as a key participant in the government-sponsored healthcare market. With a market capitalisation unavailable, the company's financial scale is suggested by its TTM revenue, which is also unavailable in the provided data, making precise categorisation of its financial scale difficult. A defining characteristic is its focus on government-sponsored programs, which ties its revenue stream directly to federal and state healthcare policy and funding.
Financial Health
The company reports a gross margin of 12.9%, though the prior year's figure is unavailable for comparison, and a thin net margin of 0.4%, indicating low profitability relative to revenue. The balance sheet appears manageable with a debt-to-equity ratio of 0.98x, suggesting a roughly equal mix of debt and equity financing, and a current ratio of 1.69x, indicating adequate short-term liquidity to cover current liabilities...
Risk Assessment
- VALUATION — The P/E ratio of 67.82x is elevated versus the sector average of 22x, indicating a significant valuation premium that may not be justified.
- EARNINGS QUALITY — Earnings have plunged -83.7% year-over-year, and only 1 out of the last 4 quarters beat analyst estimates, pointing to poor earnings quality.
- MARGINS — The net margin of 0.4% is very thin, leaving little room for error and exposing the company to potential losses from minor operational issues.
- INSIDER — Over the last 90 days, insiders executed 2 sells and 0 buys, a net selling pattern that is a cautious signal regarding management's view of the stock.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
The company reports a gross margin of 12.9%, though the prior year's figure is unavailable for comparison, and a thin net margin of 0.4%, indicating low profitability relative to revenue. The balance sheet appears manageable with a debt-to-equity ratio of 0.98x, suggesting a roughly equal mix of debt and equity financing, and a current ratio of 1.69x, indicating adequate short-term liquidity to cover current liabilities. Return on equity stands at 4.4%, reflecting a modest return generated on shareholder equity. Free cash flow data is unavailable, preventing a direct assessment of cash generation versus consumption, which limits the ability to evaluate dividend capacity or the risk of dilution. Overall, the company's financial health is neutral, supported by a reasonable debt level and sufficient liquidity, but constrained by very low net margins and a lack of cash flow data.
- VALUATION — The P/E ratio of 67.82x is elevated versus the sector average of 22x, indicating a significant valuation premium that may not be justified. - EARNINGS QUALITY — Earnings have plunged -83.7% year-over-year, and only 1 out of the last 4 quarters beat analyst estimates, pointing to poor earnings quality. - MARGINS — The net margin of 0.4% is very thin, leaving little room for error and exposing the company to potential losses from minor operational issues. - INSIDER — Over the last 90 days, insiders executed 2 sells and 0 buys, a net selling pattern that is a cautious signal regarding management's view of the stock. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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