HCA Healthcare (HCA) AI Stock Analysis

• Market Cap: $90.60B
• Dividend Yield: 0.76%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.51
• Revenue Growth: 7.30%
• EPS Growth: 11.60%
• Country: US
• Employees: 226,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): 6.45
• Shares Outstanding: 240,573,900
• 10 Day Avg. Volume: 1,626,978
• 30 Day Avg. Volume: 1,356,687
• PEG Ratio: 8.78
• Price to Book (P/B): -26.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.35
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $389.40
• Price Target Upside: 3.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $434.00 ▲(15.25%Upside)

HCA Healthcare's strong financial performance and positive technical indicators drive a high score. Robust earnings growth and effective cost management highlight operational strength, despite concerns over leverage and valuation constraints.

Positive Factors

Financial Performance

The tone was bullish given underlying strong demand for services and the ability to control costs as evidenced by +11% EBITDA growth.

Shareholder Returns

HCA completed $2.5 billion of share repurchases and anticipates completing a significant portion of the $10 billion authorization.

Negative Factors

Market Expectations

A higher bar was set ahead of earnings for HCA following the stock’s significant outperformance and valuation multiple that was ~10% above the long-term medium.

Market Reaction

The negative response (-3.9% vs. S&P 500 +0.7% and Health Care S&P 500 +0.5%) to a strong report was discouraging.

HCA Healthcare Business Overview & Revenue Model

Company Description

HCA Healthcare, Inc., through its subsidiaries, provides health care services company in the United States. The company operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. It also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities. In addition, the company operates psychiatric hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services. As of December 31, 2021, it operated 182 hospitals, including 175 general and acute care hospitals, five psychiatric hospitals, and two rehabilitation hospitals; 125 freestanding surgery centers; and 21 freestanding endoscopy centers in 20 states and England. The company was formerly known as HCA Holdings, Inc. HCA Healthcare, Inc. was founded in 1968 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

HCA Healthcare generates revenue primarily through the provision of healthcare services across its network of facilities. The company earns money by billing patients, insurers, and government programs like Medicare and Medicaid for services rendered, including hospital stays, surgeries, emergency room visits, and outpatient services. Key revenue streams include patient service revenues from acute care hospitals, which form the bulk of its income, as well as revenues from outpatient and ancillary services. HCA Healthcare also benefits from strategic partnerships and affiliations with other healthcare providers and insurers, enhancing its service delivery and patient access. The company's financial performance is influenced by factors such as healthcare reimbursement rates, patient volume, and the overall demand for medical services.

HCA Healthcare Financial Statement Overview

Summary

HCA Healthcare shows strong revenue growth and operational efficiency, evident from robust cash flow management and a healthy income statement. However, high leverage and potential risks from negative equity on the balance sheet are concerns that need monitoring.

Income Statement

HCA Healthcare has demonstrated steady revenue growth over the past few years, with a notable increase from 2022 to 2023. The gross profit margin remains robust, indicating effective cost management. Net profit margin and EBIT margins have been consistent, although there was a slight dip in net income. The EBITDA margin indicates strong operational efficiency. Overall, the income statement reflects a healthy financial trajectory, although potential risks include slight fluctuations in net income.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which poses a significant financial risk, as it indicates a reliance on debt financing. However, the company maintains substantial total assets. Return on equity is not applicable due to negative equity, but total liabilities as a percentage of total assets have been stable. The balance sheet reflects adequate asset management with risks associated with leverage.

Cash Flow

HCA Healthcare's cash flow analysis shows positive free cash flow growth, despite fluctuations in capital expenditures. The operating cash flow to net income ratio has been strong, underscoring efficient cash generation from operations. However, free cash flow to net income ratio declined recently, which could indicate increased investment activities. Overall, the company exhibits strong cash flow management, supporting its operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.58B	70.60B	64.97B	60.23B	58.75B	51.53B
Gross Profit	48.61B	28.68B	9.63B	50.86B	49.27B	43.16B
EBITDA	14.06B	13.90B	12.72B	13.29B	14.25B	9.73B
Net Income	5.78B	5.76B	5.24B	5.64B	6.96B	3.75B
Balance Sheet
Total Assets	59.80B	59.51B	56.21B	52.44B	50.74B	47.49B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.93B	1.02B	908.00M	1.45B	1.79B
Total Debt	46.44B	45.24B	41.86B	39.84B	36.33B	32.68B
Total Liabilities	60.24B	58.96B	55.15B	52.51B	49.25B	44.60B
Stockholders Equity	-3.52B	-2.50B	-1.77B	-2.77B	-933.00M	572.00M
Cash Flow
Free Cash Flow	4.95B	5.64B	4.69B	4.13B	5.38B	6.40B
Operating Cash Flow	9.70B	10.51B	9.43B	8.52B	8.96B	9.23B
Investing Cash Flow	-5.06B	-4.93B	-5.32B	-3.39B	-2.64B	-3.39B
Financing Cash Flow	-4.86B	-4.58B	-4.09B	-5.66B	-6.66B	-4.68B

HCA Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 376.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCA, the sentiment is Positive. The current price of 376.58 is above the 20-day moving average (MA) of 376.03, above the 50-day MA of 368.64, and above the 200-day MA of 346.57, indicating a bullish trend. The MACD of 3.06 indicates Positive momentum. The RSI at 51.37 is Neutral, neither overbought nor oversold. The STOCH value of 54.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCA.

HCA Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	77 Outperform	$11.89B	10.36	18.35%	0.43%	9.73%	51.87%
HUM	77 Outperform	$28.93B	16.95	10.09%	1.45%	10.09%	-12.18%
HCA	76 Outperform	$90.60B	16.73	-230.22%	0.76%	7.30%	11.60%
MOH	72 Outperform	$12.99B	11.57	26.72%	―	16.71%	12.23%
CNC	71 Outperform	$16.58B	4.96	12.59%	―	8.85%	33.30%
THC	71 Outperform	$15.93B	11.34	38.12%	―	-1.79%	-41.85%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

HCA Healthcare Corporate Events

HCA Healthcare Launches $4 Billion Commercial Paper Program

On June 10, 2025, HCA Inc., a subsidiary of HCA Healthcare, established a commercial paper program to issue up to $4 billion in unsecured notes, guaranteed by HCA Healthcare. The notes, intended for general corporate purposes, will be sold privately in the U.S. commercial paper market and are not registered under the Securities Act of 1933.

The most recent analyst rating on (HCA) stock is a Buy with a $385.00 price target. To see the full list of analyst forecasts on HCA Healthcare stock, see the HCA Stock Forecast page.

HCA Healthcare Approves New Compensation Program

On April 24, 2025, HCA Healthcare‘s Board of Directors approved the 2025-2026 compensation program for non-management directors, which includes cash retainers and equity awards. The company also held its Annual Meeting on the same day, where key decisions were made, including the election of directors, approval of amendments to the stock incentive plan, and ratification of Ernst & Young LLP as the accounting firm. Stockholder proposals on golden parachutes and acquisition strategy were not approved.

HCA Healthcare Q1 2025 Financial Results Announced

On April 25, 2025, HCA Healthcare announced its financial results for the first quarter of 2025, reporting revenues of $18.321 billion and a net income of $1.610 billion. The company declared a quarterly cash dividend of $0.72 per share, payable on June 30, 2025. The results showed a growth in same facility admissions and emergency room visits, although outpatient surgeries declined. HCA Healthcare also repurchased 7.762 million shares of its common stock during the quarter. The company reaffirmed its 2025 guidance, indicating confidence in its performance and the growing demand for healthcare services.