MOH Molina Healthcare Inc

Molina Healthcare Inc (MOH) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Examining the company through a capital allocation lens, ROIC is 13.69%, WACC is 6.53%, and the economic spread is 7.16%. On balance, the company is generating returns above their cost of capital, though the margin is slim enough to warrant attention. Supporting metrics show ROE at 10.96% and ROA at 3.06%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Valuation currently screens at trailing P/E of 16.70, forward P/E of 26.35, PEG of 2.80. Trailing and forward P/E are close together, implying the market does not expect a significant change in the earnings trajectory over the near term. At this PEG level, the company is priced generously relative to its expected earnings trajectory — execution risk is meaningfully priced in. The aggregate current ratio of 1.69 reflects a company with workable near-term liquidity positions. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

From gross to free cash flow, gross margin sits at 9.16%, operating margin at 1.76%, and free cash flow margin at -1.40%. At this level, gross margins signal that pricing power is constrained and direct cost management is a key performance driver. At this level, operating margins signal that earnings quality is limited — a feature of growth-stage or restructuring businesses. The company's FCF margin signals that most revenue is being consumed before reaching the free cash flow line — a feature of early-stage or heavily invested businesses. The margin profile is mixed, with some layers more resilient than others and less room for execution slippage.

Combining revenue momentum with analyst targets, the estimated 12-month price change of 7.70%, where target-based return potential appears limited without multiple expansion, while TTM revenue growth of 8.34% reflecting moderate but reliable revenue progress across the company. Separating operating reality from market-implied expectations is useful here — they can diverge meaningfully when sentiment shifts. The forward return case hinges on whether the operating reality stays close enough to analyst assumptions for those targets to remain credible. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite read is moderately constructive but uneven — in the absence of a clear catalyst, a neutral stance is well-supported by the data.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.