HCA Healthcare Inc
Exchange: NYSESector: HealthcareIndustry: Medical Care Facilities
HCA Holdings, Inc. (HCA) is a holding company whose affiliates owns and operates hospitals and related health care entities. HCA is a health care services companies in the United States. At December 31, 2011, it operated 163 hospitals, comprised of 157 general, acute care hospitals; five psychiatric hospitals, and one rehabilitation hospital. In addition, it operated 108 freestanding surgery centers. Its operations are structured into three geographically organized groups: the National, Southwest and Central Groups. At December 31, 2011, the National Group includes 64 hospitals located in Florida, South Carolina, southern Georgia, Alaska, California, Nevada, Utah and Idaho, the Southwest Group includes 46 hospitals located in Colorado, Texas, Oklahoma and the Wichita, Kansas market, and the Central Group includes 47 hospitals. During October 2011, the Company acquired the Colorado Health Foundation's (Foundation).In December 2011, it sold Palmyra Medical Center in Albany, Ga.
Did you know?
Net income compounded at 11.6% annually over 6 years.
Current Price
$474.03
+0.57%GoodMoat Value
$1506.54
217.8% undervaluedProfile
Valuation (TTM)
Market Cap$108.17B
P/E15.94
EV$160.17B
P/B—
Shares Out228.19M
P/Sales1.43
Revenue$75.60B
EV/EBITDA10.65
HCA Healthcare Inc (HCA) Stock Analysis
GoodMoat Analysis
HCA Healthcare is a leading hospital operator with a strong regional scale advantage, but its valuation appears unfavourable based on the provided data. The GoodMoat target price suggests significant upside, yet the current price and fundamental metrics do not align with a clear margin of safety for a value investor.
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HCA Healthcare Inc operates one of the largest networks of for-profit hospitals and surgical centers in the United States. Applying the GoodMoat framework, the company likely possesses a moderate moat, primarily from Scale Privilege (criterion #8) in its core markets, where its concentration of facilities and physician relationships create local efficiencies and brand recognition. However, its Moat Score is likely below the 5+ threshold needed to proceed, as it faces high disruption risk from insurers and lacks other durable advantages like high switching costs or proprietary technology. The business shows adequate quality with a 9.0% profit margin and a 7.0% FCF yield, but its 6.7% revenue growth is modest.
According to the Decision Framework, a stock must first pass the Moat & Quality Gate (Moat Score ≥5 and strong quality indicators) before valuation is considered. HCA's profile suggests it may not clear this initial hurdle. Even if it did, the valuation assessment presents a major disconnect. While the GoodMoat target of $1,506.54 implies a massive margin of safety (>40%), the current P/E of 16.3x and single-digit growth profile do not traditionally signal deep undervaluation. For a value investor, this discrepancy between the target and conventional metrics, coupled with a likely insufficient moat score, makes the case for further investigation unclear without reconciling these fundamental differences.
Analysis based on data as of 2024-05-15.
Market Cap$108.17B
Current Price$474.03
P/E Ratio15.94
Forward P/E—
PEG Ratio0.36
EPS$28.33
Book Value$-26.41
P/B Ratio—
HCA Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 14.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 47.3B
Revenue
51.3B
FY19
51.5B
FY20
58.8B
FY21
60.2B
FY22
65.0B
FY23
70.6B
FY24
75.6B
FY25
Net Income
3.5B
FY19
3.8B
FY20
7.0B
FY21
5.6B
FY22
5.2B
FY23
5.8B
FY24
6.8B
FY25
HCA 52-Week Range
$325.70
$544.30
50-Day MA: $508.32200-Day MA: $454.41
Did you know?
Net income compounded at 11.6% annually over 6 years.
HCA Healthcare Inc (HCA) Financial Summary
HCA Healthcare Inc (HCA) is a Healthcare company in the Medical Care Facilities industry, listed on NYSE. The stock currently trades at $474.03 with a market capitalization of $108.17B.
Key valuation metrics include a P/E ratio of 15.94, and EPS of $28.33. The company reports a profit margin of 9.0%.
HCA Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $108.17B |
| P/E Ratio | 15.94 |
| EPS | $28.33 |
| P/S Ratio | 1.43 |
| EV/EBITDA | 10.65 |
| Dividend Yield | 0.63% |
| Profit Margin | 9.0% |
HCA Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $51.34B | $3.50B |
| FY20 | $51.53B | $3.75B |
| FY21 | $58.75B | $6.96B |
| FY22 | $60.23B | $5.64B |
| FY23 | $64.97B | $5.24B |
| FY24 | $70.60B | $5.76B |
| FY25 | $75.60B | $6.78B |
HCA Healthcare Inc (HCA) Valuation
Based on GoodMoat's DCF model, HCA Healthcare Inc has a fair value estimate of $1506.54. At the current price of $474.03, the stock appears 68.5% undervalued relative to our intrinsic value estimate.
HCA Quality Indicators
HCA Healthcare Inc maintains a profit margin of 9.0% and an operating margin of 15.8%. The current ratio is 0.97.
About HCA Healthcare Inc
HCA Holdings, Inc. (HCA) is a holding company whose affiliates owns and operates hospitals and related health care entities. HCA is a health care services companies in the United States. At December 31, 2011, it operated 163 hospitals, comprised of 157 general, acute care hospitals; five psychiatric hospitals, and one rehabilitation hospital. In addition, it operated 108 freestanding surgery centers. Its operations are structured into three geographically organized groups: the National, Southwest and Central Groups. At December 31, 2011, the National Group includes 64 hospitals located in Florida, South Carolina, southern Georgia, Alaska, California, Nevada, Utah and Idaho, the Southwest Group includes 46 hospitals located in Colorado, Texas, Oklahoma and the Wichita, Kansas market, and the Central Group includes 47 hospitals. During October 2011, the Company acquired the Colorado Health Foundation's (Foundation).In December 2011, it sold Palmyra Medical Center in Albany, Ga.
HCA Free Cash Flow
HCA Healthcare Inc generated $7.69B in trailing twelve-month free cash flow, representing an FCF yield of 7.11%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
HCA Shares Outstanding
HCA Healthcare Inc has 0.23 billion shares outstanding at a share price of $474.03, giving it a market capitalization of $108.17B.
HCA Recent Insider Trades
Recent insider transactions at HCA Healthcare Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| McAlevey Michael R (EVP & Chief Legal & Admin Off.) | SELL | 1,694 | $903536.74 |
| Wyatt Christopher F. (SVP & Controller) | SELL | 4,000 | $2.02M |
| Berres Jennifer (SVP & Chief Human Res. Officer) | SELL | 4,010 | $2.02M |