Fundamentals snapshot
MOH · NYQ · Healthcare · Healthcare Plans
Current price
$207.36
52-week range
$121.06 - $244.89
Market cap
$10.82B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $4.96B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Molina Healthcare provides health insurance plans primarily to people who qualify for government programs like Medicaid and Medicare, as well as those buying insurance through state marketplaces. This means their main income comes from government contracts and individuals using government subsidies, which is important because these programs serve a large and often consistent customer base. The company's focus on these specific government-supported programs is a key part of how they make money and operate.
Molina Healthcare was founded in 1980 by Dr. C. David Molina, an emergency room physician who noticed many low-income patients were being turned away by doctors who wouldn't accept their government insurance. He started with a single clinic in Long Beach, California, aiming to provide care to those who needed it most. The company evolved from a provider organization to a health plan, becoming a licensed HMO in 1994. It went public in 2003, allowing for significant expansion across multiple states. Today, Molina Healthcare is a Fortune 500 company serving millions of members through government-sponsored healthcare programs.
Molina Healthcare acts as a health insurance company, primarily for individuals and families who qualify for government-sponsored programs like Medicaid and Medicare. Instead of you paying a doctor directly, Molina pays the healthcare providers (doctors, hospitals, etc.) on behalf of its members. They manage the health benefits and risks for millions of people, ensuring they have access to necessary medical services.
This is Molina's largest business, focusing on individuals and families eligible for Medicaid, a government health insurance program for low-income people. Molina partners with state governments to manage these health plans, essentially acting as the insurer for these populations. A significant portion of Molina's members, over 85%, come through these state Medicaid contracts, with major concentrations in states like California, New York, Texas, and Washington.
This segment involves Molina Healthcare providing insurance plans for individuals eligible for Medicare, the federal health insurance program primarily for people aged 65 and older, as well as younger people with disabilities. Molina offers Medicare Advantage plans, which are an alternative way to receive Medicare benefits, often including prescription drug coverage and other benefits.
This part of Molina's business involves offering health insurance plans through the state insurance marketplaces, which were created by the Affordable Care Act (ACA). These plans are for individuals and families who don't have access to employer-sponsored insurance and may qualify for government subsidies to help pay for their premiums.
This segment is relatively small and includes various other services. It has encompassed areas like long-term services and supports (LTSS) consultative services in Wisconsin, and historically, Molina Medicaid Solutions, which provided IT and business process outsourcing solutions to state governments for their Medicaid management systems.
Molina's current strategy focuses on growing its membership base by about 1 million people, both in existing and new markets. They also aim to increase revenue per member by improving healthcare services and pharmacy benefits management. A key part of their plan is to reduce operational costs by using automation and technology. These efforts are all geared towards driving profitability and ensuring the company can continue to grow sustainably in the competitive healthcare industry.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $5.0B - more cash than debt. Interest coverage 4.1x.
Molina Healthcare, Inc.'s profit covers its interest bill about 4.1 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $3.95B Interest coverage 4.07x This is the baseline the peer rows are being compared against.
Total debt $16.10B Interest coverage -0.46x -100% vs MOH This peer has almost no interest-payment cushion compared with MOH.
Total debt $14.74B Interest coverage 3.46x -15% vs MOH Has roughly the same debt cushion as MOH.
Total debt $31.04B Interest coverage 5.79x +42% vs MOH Carries about 1.4x more debt cushion than MOH.
Total debt $31.88B Interest coverage 5.79x +42% vs MOH Carries about 1.4x more debt cushion than MOH.
Total debt $74.33B Interest coverage 4.74x +16% vs MOH Carries about 1.2x more debt cushion than MOH.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know