Fundamentals snapshot
MOH · NYQ · Healthcare · Healthcare Plans
Current price
$232.99
52-week range
$121.06 - $237.50
Market cap
$12.14B
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 $5.30B. 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 for people with lower incomes who get coverage through government programs like Medicaid and Medicare. The company's money comes mainly from government payments to manage the healthcare for these members. This business model means Molina's success is closely tied to government healthcare funding and regulations.
Molina Healthcare was started in 1980 by Dr. C. David Molina, an emergency room doctor in California who wanted to provide quality care to low-income patients who were being turned away from other clinics. He opened his first clinic to treat patients covered by Medi-Cal, California's Medicaid program. The company grew by focusing on government-sponsored healthcare programs and in 1994 became a licensed health plan, essentially an insurance company. After becoming a publicly-traded company in 2003, Molina expanded into many more states, often by acquiring other health plans.
Molina Healthcare is a health insurance company that manages healthcare services for people and families with lower incomes. Think of it as a middleman between patients and the government programs that pay for their health coverage, like Medicaid and Medicare. The company gets a fixed monthly fee from the government for each person enrolled, a system known as managed care. Molina then pays for that person's doctor visits, hospital stays, prescription drugs, and other medical needs like dental and vision care. The goal is to provide necessary care while managing costs effectively.
This is Molina's largest and original line of business, making up the vast majority of its revenue. The company contracts with state governments to manage health benefits for people and families who qualify for Medicaid, a government program for low-income individuals. Molina provides a wide range of services including preventive care, hospital services, and emergency care at no cost to the members. The state pays Molina a set fee per member each month to coordinate and pay for all their healthcare needs.
This segment focuses on providing health plans for people who are eligible for Medicare, the federal health insurance program primarily for people aged 65 or older and younger people with certain disabilities. Molina offers Medicare Advantage plans, which are an alternative to the original government-run Medicare and often include extra benefits like dental, vision, and prescription drug coverage. A key focus for Molina is serving "dual-eligible" individuals, who qualify for both Medicare and Medicaid, as they often require more coordinated care.
Molina also offers health plans on the Health Insurance Marketplace (sometimes called the Exchange), which was created by the Affordable Care Act. These plans are for people who don't get insurance through a job and don't qualify for Medicaid but may get government help to pay for their coverage. This allows Molina to continue covering members whose income might increase slightly, making them no longer eligible for Medicaid but still in need of affordable insurance. This is a smaller but important part of Molina's business.
Molina's main strategy is to continue growing its business focused purely on government-sponsored healthcare. The company aims to win new state contracts for Medicaid and expand into new states, often by buying smaller, regional health plans. Management is also focused on improving profitability by managing medical costs effectively and increasing the number of members in its higher-margin Medicare and Marketplace plans. They see a big opportunity in better serving dual-eligible members, who qualify for both Medicare and Medicaid and have complex health needs.
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 $5.3B - 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 3 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 $16.37B Interest coverage -0.46x -100% vs MOH This peer has almost no interest-payment cushion compared with MOH.
Total debt $482.24M Interest coverage -23.85x -100% vs MOH This peer has almost no interest-payment cushion compared with MOH.
Total debt $329.97M Interest coverage 0.93x -77% vs MOH Carries about 4.4x less debt cushion than MOH.
Total debt $14.37B Interest coverage 3.46x -15% vs MOH Has roughly the same debt cushion as MOH.
Total debt $31.84B Interest coverage 5.79x +42% vs MOH Carries about 1.4x more debt cushion than MOH.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
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Metric explainer
Debt comparison
What you should know