Molina Healthcare (MOH) AI Stock Analysis

• Market Cap: $7.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 9.0
• Beta (1Y): -0.10
• Revenue Growth: 13.71%
• EPS Growth: -18.02%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 5.48
• Shares Outstanding: 51,400,000
• 10 Day Avg. Volume: 1,921,662
• 30 Day Avg. Volume: 1,928,255
• PEG Ratio: 1.46
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 30.71
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 12.85
• 1Y Price Target: $170.36
• Price Target Upside: 17.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $172.00 ▲(18.38% Upside)

Molina Healthcare's overall stock score is primarily impacted by its strong revenue growth but challenged by profitability and cash flow issues. The technical analysis indicates bearish momentum, which could lead to further price declines. The valuation suggests potential undervaluation, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

The expected revenue growth to $46 billion in 2026 reflects strong demand and expansion, particularly through new Medicaid contracts, indicating a robust market position and potential for sustained growth.

Medicaid Segment Performance

The strong performance of the Medicaid segment, with a 3.2% pretax margin, underscores Molina's competitive advantage in managed care services, supporting long-term profitability and stability.

New Contract Wins

Securing new Medicaid contracts in Georgia and Texas and renewing existing ones demonstrates Molina's effective strategy in expanding its footprint, enhancing its competitive position and future revenue streams.

Negative Factors

Profitability Challenges

Decreasing profit margins highlight rising costs and pricing pressures, which could hinder Molina's ability to maintain profitability and affect long-term financial health.

Revised Earnings Guidance

The significant revision in earnings guidance reflects ongoing cost pressures, particularly in the Marketplace segment, which could impact investor confidence and financial performance.

Cash Flow Weakness

Negative cash flow trends indicate potential liquidity challenges, which could limit Molina's ability to invest in growth opportunities and manage financial obligations effectively.

Molina Healthcare Business Overview & Revenue Model

Company Description

Molina Healthcare, Inc. is a leading provider of managed health care services, focusing primarily on Medicaid and Medicare programs in the United States. The company operates through various segments, including Health Plans, which offer health insurance coverage to low-income individuals and families, and the Molina Marketplace, which provides affordable health insurance options under the Affordable Care Act. With a commitment to improving the health outcomes of its members, Molina Healthcare aims to deliver quality care and services tailored to the unique needs of the communities it serves.

How the Company Makes Money

Molina Healthcare generates revenue primarily through its Health Plans segment, which receives funding from state and federal government programs. The company contracts with state Medicaid programs to provide managed care services, receiving capitation payments based on the number of enrolled members. Additionally, Molina participates in Medicare Advantage programs, earning premium payments for providing healthcare services to Medicare beneficiaries. Key revenue streams include premiums from Medicaid and Medicare plans, as well as supplemental revenue from additional services such as pharmacy benefits. The company also engages in partnerships with healthcare providers and community organizations to enhance care delivery, which can lead to improved member enrollment and retention, further contributing to its earnings.

Molina Healthcare Financial Statement Overview

Summary

Molina Healthcare shows strong revenue growth but faces challenges in profitability and cash flow. Rising costs are impacting margins, and increased leverage could pose risks if not managed effectively. The negative cash flow trends are concerning for long-term financial health.

Income Statement

Molina Healthcare has shown strong revenue growth with a 24.54% increase in the TTM period, indicating robust demand and expansion. However, the gross profit margin has decreased to 8.19% from previous years, suggesting rising costs or pricing pressures. The net profit margin also declined to 1.63%, reflecting challenges in maintaining profitability. Despite these pressures, the company maintains a positive EBIT and EBITDA margin, though both have decreased compared to prior periods.

Balance Sheet

The company's debt-to-equity ratio of 0.92 in the TTM period indicates a moderate level of leverage, which is manageable but has increased from previous years. Return on equity has decreased to 20.07%, suggesting a decline in profitability relative to shareholder equity. The equity ratio remains stable, indicating a solid capital structure despite the increased debt levels.

Cash Flow

Molina Healthcare's cash flow position has weakened, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings into cash. However, the free cash flow to net income ratio remains positive, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.07B	40.65B	34.07B	31.97B	27.77B	19.42B
Gross Profit	4.43B	4.74B	4.33B	3.93B	3.28B	2.68B
EBITDA	1.52B	1.89B	1.74B	1.35B	1.13B	1.15B
Net Income	883.00M	1.18B	1.09B	792.00M	659.00M	673.00M
Balance Sheet
Total Assets	15.70B	15.63B	14.89B	12.31B	12.21B	9.53B
Cash, Cash Equivalents and Short-Term Investments	8.45B	8.99B	9.11B	7.50B	7.64B	6.03B
Total Debt	3.85B	3.12B	2.38B	2.39B	2.39B	2.35B
Total Liabilities	11.51B	11.13B	10.68B	9.35B	9.58B	7.44B
Stockholders Equity	4.19B	4.50B	4.21B	2.96B	2.63B	2.10B
Cash Flow
Free Cash Flow	-574.00M	544.00M	1.58B	682.00M	2.04B	1.82B
Operating Cash Flow	-461.00M	644.00M	1.66B	773.00M	2.12B	1.89B
Investing Cash Flow	101.00M	-464.00M	-744.00M	-790.00M	-1.65B	-400.00M
Financing Cash Flow	-195.00M	-347.00M	-58.00M	-441.00M	-183.00M	217.00M

Molina Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 145.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 145.3 is below the 20-day moving average (MA) of 145.69, below the 50-day MA of 171.42, and below the 200-day MA of 242.12, indicating a bearish trend. The MACD of -9.40 indicates Negative momentum. The RSI at 42.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.99 is Neutral, 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
CVS	74 Outperform	$98.89B	203.55	0.63%	3.41%	6.71%	-90.11%
CI	72 Outperform	$72.52B	11.98	14.65%	1.93%	16.75%	113.48%
ELV	68 Neutral	$73.25B	13.48	12.61%	1.93%	11.96%	-11.11%
HUM	63 Neutral	$27.31B	21.28	7.15%	1.21%	9.87%	-5.58%
MOH	61 Neutral	$7.47B	9.01	19.71%	―	13.71%	-18.02%
CNC	61 Neutral	$18.76B	―	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Molina Healthcare Corporate Events

Molina Healthcare’s Earnings Call: Growth Amid Challenges

Molina Healthcare’s recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. The company celebrated revenue growth and new contract wins, yet faced significant hurdles in its Marketplace segment, leading to revised earnings guidance due to increased medical costs.

Molina Healthcare’s Q3 2025 Financial Performance Overview

Molina Healthcare, Inc. is a Fortune 500 company that provides managed healthcare services under the Medicaid and Medicare programs and through state insurance marketplaces. The company is known for its focus on providing quality healthcare to low-income individuals and families.

Molina Healthcare Amends Credit Agreement for $500M Loan

On August 12, 2025, Molina Healthcare amended its Credit Agreement to include a $500 million Delayed Draw A-2 Commitment, maturing on August 12, 2027. The company plans to use this loan to partially fund its stock repurchase program, addressing timing issues with subsidiary dividends, which may impact its financial strategy and shareholder value.

The most recent analyst rating on (MOH) stock is a Hold with a $341.00 price target. To see the full list of analyst forecasts on Molina Healthcare stock, see the MOH Stock Forecast page.