Molina Healthcare (MOH) AI Stock Analysis

• Market Cap: $8.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 7.9
• Beta (1Y): -0.06
• Revenue Growth: 16.12%
• EPS Growth: 10.99%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Plans
• EPS (TTM): 5.48
• Shares Outstanding: 54,200,000
• 10 Day Avg. Volume: 1,635,971
• 30 Day Avg. Volume: 1,955,400
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.29
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 8.50
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $212.85
• Price Target Upside: 32.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $177.00 ▲(9.79% Upside)

Molina Healthcare's stock score is primarily influenced by its robust financial performance and undervalued P/E ratio, suggesting potential for investment. However, bearish technical indicators and challenges highlighted in the earnings call, such as revised guidance and cost pressures, weigh down the overall score. Investors should remain cautious due to the mixed sentiment and technical downtrend.

Positive Factors

Medicaid Rate Setting

Management expressed confidence in more appropriate rate setting among the Medicaid cohort, which renews a significant portion of its premium.

Rate Advocacy

MOH has strong rate advocacy efforts with state partners to restore Medicaid rates to appropriate levels, potentially improving future financial outcomes.

Negative Factors

Enrollment Impact

MOH expects significant impact on 2026 industry enrollment due to eAPTCs not being extended.

EPS Guidance

MOH lowered FY25 EPS guidance an additional -14% following a previous revision, indicating increased financial pressure.

Medical Cost Pressures

The company is facing accelerating medical cost pressures across all business lines, impacting financial performance.

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 has demonstrated strong financial performance with solid revenue and profit growth, effective cost management, and robust cash flow generation. However, attention is needed for potential cash flow volatility.

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
EBITDA	1.89B	1.74B	1.35B	1.13B	1.15B
Net Income	1.18B	1.09B	792.00M	659.00M	673.00M
Balance Sheet
Total Assets	15.63B	14.89B	12.31B	12.21B	9.53B
Cash, Cash Equivalents and Short-Term Investments	8.99B	9.11B	7.50B	7.64B	6.03B
Total Debt	3.12B	2.38B	2.39B	2.39B	2.35B
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: Negative
• Last Price: 161.21
• 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 161.21 is below the 20-day moving average (MA) of 163.07, below the 50-day MA of 227.02, and below the 200-day MA of 288.47, indicating a bearish trend. The MACD of -19.61 indicates Negative momentum. The RSI at 32.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 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
HUM	75 Outperform	$33.07B	21.10	9.03%	1.26%	9.88%	-7.25%
CVS	73 Outperform	$83.09B	18.28	5.95%	4.04%	6.27%	-36.28%
CI	73 Outperform	$74.87B	15.32	12.31%	2.03%	20.93%	43.98%
ELV	71 Outperform	$65.86B	12.45	12.48%	2.27%	10.21%	-17.79%
MOH	65 Neutral	$8.53B	7.95	23.93%	―	16.12%	10.99%
CNC	58 Neutral	$12.85B	6.47	7.50%	―	12.96%	-23.25%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%

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.