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HCA Healthcare Inc HCA

Morningstar Rating
$312.84 +1.22 (0.39%)
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Company Report

HCA Earnings: Rising Medical Utilization Boosts the Top U.S Hospital Chain's Fair Value

Narrow-moat HCA Healthcare turned in better-than-anticipated fourth-quarter results that benefited from improving medical utilization trends and easing labor pressures. Considering these strong trends and cash flows generated since our last valuation update in early 2023, we are moderately increasing our fair value estimate on HCA to $285 per share from $260. While providers like HCA may continue to benefit from the increasing medical utilization trends that are constraining health insurer results in 2024, we view HCA shares as about fairly valued.

Price vs Fair Value

HCA is trading at a 10% premium.
Price
$312.84
Fair Value
$536.00
Uncertainty
Medium
1-Star Price
$674.53
5-Star Price
$697.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Beyond administrative function efficiency, HCA's large scale gives it an opportunity to test and expand best practices throughout its network of facilities to improve service quality and efficiency.

Bears

Healthcare policy changes will likely remain a key ESG risk until universal, affordable coverage is achieved in the U.S.

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News

Trading Information

Previous Close Price
$311.62
Day Range
$309.57318.30
52-Week Range
$215.96318.30
Bid/Ask
$229.77 / $497.41
Market Cap
$82.75 Bil
Volume/Avg
1.6 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
17.19
Price/Sales
1.30
Dividend Yield (Trailing)
0.77%
Dividend Yield (Forward)
0.84%
Total Yield
5.37%

Company Profile

HCA Healthcare is a Nashville-based healthcare provider organization operating the largest collection of acute-care hospitals in the United States. As of December 2022, the firm owned and operated 182 hospitals, 126 freestanding outpatient surgery centers, and a broad network of physician offices, urgent-care clinics, and freestanding emergency rooms across 20 states and a small foothold in England.
Sector
Healthcare
Industry
Medical Care Facilities
Stock Style Box
Large Value
Total Number of Employees
310,000

Competitors

Valuation

Metric
HCA
DVA
THC
Price/Earnings (Normalized)
17.1914.7314.05
Price/Book Value
10.385.55
Price/Sales
1.300.950.45
Price/Cash Flow
8.546.174.00
Price/Earnings
HCA
DVA
THC

Financial Strength

Metric
HCA
DVA
THC
Quick Ratio
0.861.061.10
Current Ratio
1.181.191.51
Interest Coverage
4.983.952.79
Quick Ratio
HCA
DVA
THC

Profitability

Metric
HCA
DVA
THC
Return on Assets (Normalized)
9.75%6.40%5.45%
Return on Equity (Normalized)
112.35%110.21%
Return on Invested Capital (Normalized)
16.43%10.05%11.10%
Return on Assets
HCA
DVA
THC
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Medical Care Facilities Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
FSNUF
Fresenius SE & Co KGaALdzjybc$15.7 Bil
FSNUY
Fresenius SE & Co KGaA ADRVyhyylq$15.7 Bil
BDULF
Bangkok Dusit Medical Services PCL Shs Foreign RegisteredWvvj$13.3 Bil
JDHIF
JD Health International IncSvcflz$12.5 Bil
JDHIY
JD Health International Inc ADRFbsvms$12.5 Bil
FMS
Fresenius Medical Care AG ADRNjcbn$11.4 Bil
DVA
DaVita IncGjwljv$10.7 Bil
THC
Tenet Healthcare CorpDhnxk$9.2 Bil
AMN
AMN Healthcare Services IncFhstkvk$2.2 Bil

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