HCA Healthcare Inc (HCA, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at 277, HCA Healthcare Inc has witnessed a surge of 0.79% over a period, marked against a three-month change of 0.19%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that HCA Healthcare Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here is a breakdown of HCA Healthcare Inc's GF Score:
- Financial strength rank: 4/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, and a slightly lower financial strength rank, GuruFocus assigned HCA Healthcare Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Introduction to HCA Healthcare Inc
HCA Healthcare Inc is a Nashville-based healthcare provider organization operating the largest collection of acute-care hospitals in the United States. As of December 2022, the firm owned and operated 182 hospitals, 126 freestanding outpatient surgery centers, and a broad network of physician offices, urgent-care clinics, and freestanding emergency rooms across 20 states and a small foothold in England. With a market cap of $75.34 billion and sales of $61.92 billion, the company has an operating margin of 15%. This is the income breakdown of HCA Healthcare Inc:
Profitability Rank Breakdown
The Profitability Rank shows HCA Healthcare Inc's impressive standing among its peers in generating profit. HCA Healthcare Inc's Operating Margin has increased over the past five years, as shown by the following data: 2018: 14.23; 2019: 14.06; 2020: 14.09; 2021: 16.47; 2022: 15.03. Furthermore, HCA Healthcare Inc's Gross Margin has seen a consistent rise over the past five years, as evidenced by the data: 2018: 83.45; 2019: 83.48; 2020: 83.76; 2021: 83.86; 2022: 84.44. This trend underscores the company's growing proficiency in transforming revenue into profit.
HCA Healthcare Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, HCA Healthcare Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 11.5%, which outperforms better than 57.87% of 572 companies in the Healthcare Providers & Services industry. Moreover, HCA Healthcare Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 17.6, and the rate over the past five years is 15.7. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given HCA Healthcare Inc's strong financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential outperformance. This analysis underscores the importance of considering a company's GF Score when making investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
