Molina Healthcare (MOH) AI Stock Analysis

• Market Cap: $11.63B
• Dividend Yield: N/A
• Average Volume (3M): 803.42K
• Price to Earnings (P/E): 10.4
• Beta (1Y): -0.07
• Revenue Growth: 16.71%
• EPS Growth: 12.23%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.08
• Shares Outstanding: 54,200,000
• 10 Day Avg. Volume: 1,220,662
• 30 Day Avg. Volume: 803,421
• PEG Ratio: 7.69
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.60
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 1.47
• 1Y Price Target: $305.64
• Price Target Upside: 41.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $265.00 ▲(22.65%Upside)

Molina Healthcare's strong financial performance and strategic growth initiatives are major strengths. However, bearish technical indicators and challenges like higher medical costs and loss of the Virginia contract weigh on the overall score. The undervalued P/E ratio presents potential for capital appreciation.

Positive Factors

Medicaid rate growth

Management now expects full-year Medicaid rate growth to be 5.0% versus a previous expectation of 4.5%.

Medicaid rate outlook

Improving Medicaid rate outlook and stable utilization are positives.

Negative Factors

Earnings guidance

Molina Healthcare announced a reduction in its expected 2025 adjusted earnings per share due to medical cost pressures.

Financial performance challenges

Molina Healthcare's updated guidance reflects a lower pre-tax margin, indicating financial challenges ahead.

Medicaid funding uncertainty

The company faces uncertainty in Medicaid funding ahead of major federal funding cuts under the Reconciliation Bill.

Molina Healthcare Business Overview & Revenue Model

Company Description

Molina Healthcare, Inc. provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments, Medicaid, Medicare, Marketplace, and Other. As of December 31, 2021, the company served the company served approximately 5.2 million members eligible for Medicaid, Medicare, and other government-sponsored healthcare programs in 18 states. The company was founded in 1980 and is headquartered in Long Beach, California.

How the Company Makes Money

Molina Healthcare generates revenue primarily through premium payments received for the health insurance plans it provides under government programs such as Medicaid and Medicare. The company contracts with state governments to manage care for Medicaid beneficiaries, receiving a fixed amount per member per month, which is known as a capitation payment. For Medicare, Molina offers plans under the Medicare Advantage program, receiving payments from the federal government. Additionally, Molina participates in the Health Insurance Marketplace, offering plans to individuals and families who do not qualify for Medicaid or Medicare. Key revenue streams include the capitation payments for Medicaid and Medicare members, as well as premium payments from Marketplace members. Molina's profitability is influenced by its ability to manage medical costs effectively and maintain a robust provider network.

Molina Healthcare Financial Statement Overview

Summary

Molina Healthcare demonstrates strong financial performance with consistent revenue and profit growth, effective leverage management, and robust cash flow generation. The company is well-positioned within the healthcare plans industry, though attention to cash flow volatility will be crucial for sustaining its growth trajectory.

Income Statement

Molina Healthcare has shown strong revenue growth with a TTM (Trailing-Twelve-Months) increase from the previous year. The company maintains a solid gross profit margin and net profit margin indicating effective cost management and profitability. EBIT and EBITDA margins are stable, illustrating operational efficiency.

Balance Sheet

The balance sheet reflects a healthy equity ratio, showing that a substantial portion of the company's assets are financed by shareholders' equity. The debt-to-equity ratio is moderate, suggesting a balanced financial leverage. Return on equity is strong, highlighting effective use of equity to generate profits.

Cash Flow

The cash flow statement indicates a robust operating cash flow to net income ratio, reflecting good cash generation from operations. Free cash flow is consistently positive, supporting the company's ability to reinvest and grow. However, fluctuations in free cash flow growth rate suggest potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.84B	40.65B	34.07B	31.97B	27.77B	19.42B
Gross Profit	4.78B	4.74B	4.33B	3.93B	3.28B	2.68B
EBITDA	1.90B	1.89B	1.74B	1.35B	1.13B	1.15B
Net Income	1.18B	1.18B	1.09B	792.00M	659.00M	673.00M
Balance Sheet
Total Assets	16.39B	15.63B	14.89B	12.31B	12.21B	9.53B
Cash, Cash Equivalents and Short-Term Investments	9.29B	8.99B	9.11B	7.50B	7.64B	6.03B
Total Debt	3.77B	3.12B	2.38B	2.39B	2.39B	2.35B
Total Liabilities	12.08B	11.13B	10.68B	9.35B	9.58B	7.44B
Stockholders Equity	4.31B	4.50B	4.21B	2.96B	2.63B	2.10B
Cash Flow
Free Cash Flow	525.00M	544.00M	1.58B	682.00M	2.04B	1.82B
Operating Cash Flow	620.00M	644.00M	1.66B	773.00M	2.12B	1.89B
Investing Cash Flow	-99.00M	-464.00M	-744.00M	-790.00M	-1.65B	-400.00M
Financing Cash Flow	-138.00M	-347.00M	-58.00M	-441.00M	-183.00M	225.00M

Molina Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOH, the sentiment is Negative. The current price of 216.06 is below the 20-day moving average (MA) of 261.65, below the 50-day MA of 289.61, and below the 200-day MA of 304.84, indicating a bearish trend. The MACD of -22.42 indicates Positive momentum. The RSI at 22.65 is Positive, neither overbought nor oversold. The STOCH value of 6.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MOH.

Molina Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	77 Outperform	$27.45B	16.08	10.09%	1.59%	10.09%	-12.18%
MOH	72 Outperform	$11.63B	10.44	26.72%	―	16.71%	12.23%
CVS	72 Outperform	$80.89B	15.27	7.00%	4.16%	4.84%	-26.54%
CNC	71 Outperform	$15.25B	4.47	12.59%	―	8.85%	33.30%
ELV	71 Outperform	$76.83B	13.27	14.24%	2.03%	6.63%	-3.26%
CI	68 Neutral	$80.79B	16.76	12.37%	2.00%	24.65%	48.38%
Sector *	64 Neutral	¥345.34B	10.96	-2.99%	2.56%	11.77%	-10.16%

Molina Healthcare Corporate Events

Molina Healthcare’s Annual Meeting Highlights Key Decisions

On April 30, 2025, Molina Healthcare held its Annual Meeting where 85.6% of the company’s outstanding shares were represented. During the meeting, stockholders voted on several proposals, including the election of nine directors, approval of executive compensation, ratification of Ernst & Young LLP as the independent auditor, approval of the 2025 Equity Incentive Plan, and a stockholder proposal regarding special meetings. Key outcomes included the election of directors and the approval of the equity plan, while the executive compensation proposal faced significant opposition.