Molina Healthcare, Inc. ($MOH) Cautious Buy or Hold to $45 Confident Investor Rating: Fair

Company name Molina Healthcare, Inc.
Stock ticker MOH
Live stock price [stckqut]MOH[/stckqut]
P/E compared to competitors Fair


Employee productivity Good
Sales growth Good
EPS growth Poor
P/E growth Good
EBIT growth Poor


Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $43.13
Target stock price (averages with growth) $65.19
Target stock price (averages with no growth) $52.44
Target stock price (manual assumptions) $42.49

The following company description is from Google Finance:

Molina Healthcare, Inc. provides medicaid-related solutions. The Company operates in two segments: Health Plans and Molina Medicaid Solutions. Its Health Plans segment consists of health plans in California, Florida, Michigan, New Mexico, Ohio, Texas, Utah, Washington, and Wisconsin, and includes the Company’s direct delivery business. Its Molina Medicaid Solutions segment provides design, development, implementation, and business process outsourcing solutions to state governments for their Medicaid Management Information Systems (MMIS).As of December 31, 2012, Health Plans segment served approximately 1.8 million members eligible for Medicaid, Medicare, and other government-sponsored health care programs for low-income families and individuals. In June 2013, Molina Healthcare Inc announced that, through its wholly owned subsidiary, Molina Center LLC, it has successfully completed a sale and lease back transaction with the dedicated net lease group of Angelo, Gordon & Co (AG).


Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Molina Healthcare, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $34.71

Growth: 0.15

Current EPS (TTM): $1.62

P/E: 21

Future EPS Calc: $3.25

Future Stock Price Calc: $68.42

Target stock price: $42.48

I hope that this makes you a better investor. [/s2If]

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