Molina Healthcare Inc (MOH) Stock

Molina Healthcare Inc trades at a P/E ratio of 10.28, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 11.47 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 2.49 indicates a premium valuation even accounting for growth.

With a beta of 0.52, Molina Healthcare Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.97 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Molina Healthcare Inc achieves a profit margin of 2.06%, meaning it retains $2.06 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 1.25% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.70% and ROA at 5.27%, the company generates strong returns on invested capital.

Molina Healthcare Inc's revenue grew by 11.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 73.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against HEALTHCARE PLANS industry averages for proper context.

Molina Healthcare Inc has a market capitalization of $9.0B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 51.40M shares outstanding, the company's ownership is relatively concentrated. As a participant in the HEALTHCARE PLANS industry, it competes with other firms in this sector.

Molina Healthcare Inc's book value per share is $82.18, while the current stock price is $166.50, resulting in a price-to-book (P/B) ratio of 2.03. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

17 analysts cover MOH with 18% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $178.81 implies 7.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:03 Buy, 12 Hold, 02 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.