Molina Healthcare Inc. (MOH) Stock

Molina Healthcare Inc. trades at a P/E ratio of 9.47, 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 9.57 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of -0.62 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.54, 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 2.26 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 2.71%, meaning it retains $2.71 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 3.39% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 23.90% and ROA at 6.60%, the company generates strong returns on invested capital.

Molina Healthcare Inc.'s revenue grew by 14.80% 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 8.10% 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 $10.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 54.20M 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 $85.24, while the current stock price is $158.47, resulting in a price-to-book (P/B) ratio of 1.86. 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.

16 analysts cover MOH with 25% 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 $202.43 implies 27.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:04 Buy, 11 Hold, 01 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.