Last Updated: 16 Oct 2024
Executive Summary
Molina Healthcare Inc. (MOH) is a managed care provider specializing in Medicaid and Medicare programs. The company has a strong financial position with a market capitalization of $18.9 billion and an EBITDA of $1.7 billion. MOH's profitability metrics are solid, with a profit margin of 2.95% and an operating margin of 4.53%. The company's revenue has grown by 17.5% year-over-year, driven by increased demand for healthcare services.
Company Overview
Molina Healthcare is headquartered in Long Beach, California, and operates in 14 states. The company provides health insurance to over 4.6 million members, primarily through Medicaid and Medicare programs. MOH also offers commercial health insurance plans and services through state insurance marketplaces.
Fundamental Analysis
Revenue: MOH's revenue has grown steadily over the past few years, reaching $36.1 billion in the last twelve months. The company's revenue growth is driven by increased enrollment in its Medicaid and Medicare programs, as well as expansion into new markets.
Earnings: MOH's earnings per share (EPS) have also grown in recent years, reaching $18.23 in the last twelve months. The company's EPS growth is driven by increasing revenue and cost control initiatives.
Profitability: MOH's profitability metrics are solid, with a profit margin of 2.95% and an operating margin of 4.53%. The company's profitability is supported by its efficient operations and focus on low-cost healthcare services.
Valuation: MOH's trailing price-to-earnings (PE) ratio is 17.72, which is in line with the industry average. The company's forward PE ratio is 12.36, indicating that analysts expect MOH's earnings to grow in the future.
Technical Analysis
Trend: MOH's stock price has been trending upwards in recent months, breaking above its 200-day moving average. The stock is currently trading above its 50-day moving average, indicating a positive short-term trend.
Support and Resistance: The stock has strong support at $300 and resistance at $350. A break above $350 would indicate a bullish breakout, while a break below $300 would indicate a bearish reversal.
Indicators: The relative strength index (RSI) is currently at 55, indicating that the stock is not overbought or oversold. The moving average convergence divergence (MACD) is also positive, indicating that the stock is in a bullish trend.
Short Term Outlook
In the short term, MOH's stock price is expected to continue to trend upwards. The company's strong fundamentals and positive technical indicators suggest that the stock is likely to reach its analyst target price of $372.65.
Long Term Outlook
In the long term, MOH's stock price is expected to continue to grow as the company benefits from the aging population and increasing demand for healthcare services. The company's focus on low-cost healthcare services and expansion into new markets should also drive future growth.
Analyst Recommendations
Analysts have a positive outlook on MOH's stock. The majority of analysts recommend buying the stock, with a target price of $372.65.
