Analyzing And Valuing Molina Healthcare As A Solid Company

Daniel Mellado profile picture
Daniel Mellado
34 Followers
(19min)

Summary

  • Molina Healthcare increased its Medicaid membership by 49.55% between 2019 and 2023.
  • The Medicaid health program, which represents 91% of Molina Healthcare’s revenues, is expected to grow 5.2% annually between 2023 and 2032.
  • After valuing the company using the DCF model, the company is undervalued by 82.37% in the baseline scenario, and is undervalued by 3.02% in the pessimistic scenario.
Molina Healthcare headquarters in Long Beach, California, USA

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Investment Thesis

I consider Molina Healthcare (NYSE:MOH) a great investment opportunity. From 2018 to 2024 Q3 TTM, the company's revenues and net income have grown by 107.51% and 61.81%, respectively. In addition, Molina Healthcare has expanded its operation to seven States in the United States

This article was written by

Daniel Mellado profile picture
34 Followers
Daniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial investment portfolio for an agribusiness group. Then, he managed two teams, one in trading and the other in data analysis. The trading team invested in bonds, equities, and ETFs.His following job opportunities have been as a freelance developing and implementing strategies for algorithmic trading.He will bring to seekingalpha.com analysis and valuation for companies in the following sectors: commodities, banking, technological and pharmaceutical.The approach to generating buying and selling recommendations is based on financial statements, regulations, macroeconomic variables, etc.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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