Molina Healthcare (MOH) AI Stock Analysis

• Market Cap: $17.14B
• Dividend Yield: N/A
• Average Volume (3M): 797.79K
• Price to Earnings (P/E): 15.3
• Beta (1Y): -0.07
• Revenue Growth: 16.71%
• EPS Growth: 12.23%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.08
• Shares Outstanding: 54,200,000
• 10 Day Avg. Volume: 838,735
• 30 Day Avg. Volume: 797,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $369.00
• Price Target Upside: 14.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Molina Healthcare scores well due to its strong financial performance and positive earnings call highlights, including strategic growth initiatives and effective cost management. The stock's valuation is moderate, and while technical indicators suggest upward momentum, some caution is warranted due to potential volatility. Overall, the company's solid fundamentals and strategic positioning in the healthcare industry provide a robust foundation for future growth.

Positive Factors

Financial Performance

MOH reported Q1 results that beat on adjusted EPS by 2% and reiterated its FY25 adjusted EPS guide.

Medicaid Rate Outlook

Improving Medicaid rate outlook and stable utilization are positives.

Negative Factors

Earnings and Profitability Concerns

Analyst is lowering the price target to $342, reflecting concerns about future earnings and profitability.

Medicaid Funding Uncertainty

Analyst reiterates Underperform on MOH given the uncertainty for Medicaid funding and exchanges heading into next year.

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 government contracts and agreements to provide health insurance plans for Medicaid and Medicare beneficiaries. The company receives capitation payments from state and federal governments, which are fixed amounts per member per month, to manage the healthcare needs of enrolled individuals. Additional revenue streams include premiums from commercial health plans and fees for providing behavioral health services. Molina's earnings are significantly influenced by its ability to efficiently manage healthcare costs while delivering quality services, as well as its participation in various state Medicaid programs and the federal Medicare program.

Molina Healthcare Financial Statement Overview

Summary

Molina Healthcare exhibits strong financial performance with consistent revenue and profit growth, effective leverage management, and robust cash flow generation. While the company is well-positioned within the healthcare plans industry, 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
40.65B	34.07B	31.97B	27.77B	19.42B
	Gross Profit
4.74B	4.33B	3.93B	3.28B	2.68B
	EBIT
1.71B	1.57B	1.17B	1.02B	1.08B
	EBITDA
1.89B	1.74B	1.35B	1.13B	1.15B
	Net Income Common Stockholders
1.18B	1.09B	792.00M	659.00M	673.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.99B	9.11B	7.50B	7.64B	6.03B
	Total Assets
15.63B	14.89B	12.31B	12.21B	9.53B
	Total Debt
3.12B	2.38B	2.39B	2.39B	2.35B
	Net Debt
-1.54B	-2.46B	-1.61B	-2.05B	-1.80B
	Total Liabilities
11.13B	10.68B	9.35B	9.58B	7.44B
	Stockholders Equity
4.50B	4.21B	2.96B	2.63B	2.10B
Cash Flow		Free Cash Flow
544.00M	1.58B	682.00M	2.04B	1.82B
	Operating Cash Flow
644.00M	1.66B	773.00M	2.12B	1.89B
	Investing Cash Flow
-464.00M	-744.00M	-790.00M	-1.65B	-400.00M
	Financing Cash Flow
-347.00M	-58.00M	-441.00M	-183.00M	225.00M

Molina Healthcare Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.20
• 50DMA: Negative
• 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 MOH, the sentiment is Positive. The current price of 322.2 is below the 20-day moving average (MA) of 323.81, below the 50-day MA of 322.95, and above the 200-day MA of 317.62, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MOH.

Molina Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOH	79 Outperform	$17.14B	15.27	26.72%	―	16.71%	12.23%
THC	78 Outperform	$14.07B	10.02	38.12%	―	-1.79%	-41.85%
CNC	75 Outperform	$29.70B	8.89	12.59%	―	8.85%	33.30%
UHS	73 Outperform	$12.01B	10.00	18.35%	0.44%	9.73%	51.87%
DVA	64 Neutral	$10.96B	13.27	159.08%	―	5.56%	45.02%
Sector *	52 Neutral	$5.15B	3.56	-42.19%	2.83%	14.48%	-0.49%
MLTX	41 Neutral	$2.55B	―	-25.24%	―	―	-147.80%

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.

Spark’s Take on MOH Stock

According to Spark, TipRanks’ AI Analyst, MOH is a Outperform.

Molina Healthcare is well-positioned with strong financial performance and strategic growth initiatives. Despite some challenges such as the loss of the Virginia contract, the company’s strategic acquisitions and RFP wins bolster its future prospects. The technical indicators are mixed, and the valuation is fair, supporting a moderately strong stock score.

To see Spark’s full report on MOH stock, click here.

Molina Healthcare Wins Illinois D-SNP Contract

On March 18, 2025, Molina Healthcare announced that its subsidiary, Molina Healthcare of Illinois, was awarded a contract by the Illinois Department of Healthcare and Family Services to provide a Fully Integrated Dual Eligible Special Needs Plan (D-SNP). This new contract, set to replace the State’s Medicare-Medicaid Alignment Initiative demonstration program serving approximately 73,000 beneficiaries, is expected to commence on January 1, 2026, with an initial term of four years and potential extensions up to ten years.