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HCA HCA Healthcare, Inc. - Fundamental Analysis

BULLISH
HCA Stock | Fundamental Analysis & Investment Insights
NYSE Healthcare Medical Care Facilities
Current Price
$472.65
Analyst Target
$477.57
+1.0% Upside
52W High
$480.0
52W Low
$289.98

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
92%
Analysis Accuracy
HCA Healthcare trades near its 52-week high with strong price momentum, up 37.9% over the past year and 225.1% over five years, reflecting sustained operational outperformance. The company delivered robust YoY earnings growth of 42.6%, supported by consistent quarterly beats—21 of the last 25 quarters—and accelerating revenue growth at 9.6%. Despite a premium valuation relative to some peers, HCA’s profitability metrics, including a 15.47% operating margin and 12.20% ROA, are industry-leading and justify the multiple. Analysts are aligned with a 'buy' recommendation and a $477.57 target price, implying modest upside, while insider selling remains limited in volume and likely routine.

Key Strengths

Exceptional earnings growth of 42.6% YoY, significantly outpacing sector average revenue growth of 10.56%
Consistent earnings beat record: 21 out of 25 quarters beat estimates, with an average surprise of 13.95% over the last four
Superior profitability with 15.47% operating margin and 12.20% ROA, both above peer and sector medians
Attractive valuation relative to healthcare peers despite premium P/E, given strong earnings execution and sector tailwinds
High analyst conviction with 21 analysts maintaining a 'buy' rating and price target implying 1.0% upside

Key Risks

Negative Price/Book ratio (-20.36) suggests accumulated losses or aggressive share buybacks eroding book value
Limited liquidity with current ratio of 0.85 and quick ratio of 0.64, below the sector’s typical threshold for financial safety
Missing key financial data (EV, debt/equity, cash/debt, ROIC, ROE) raises transparency concerns and limits full capital structure analysis
Insider selling activity in the last six months (two officer sales totaling $3.45M) signals lack of near-term confidence from insiders
Valuation appears stretched relative to lower-growth peers like BMY (P/E 15.71) and CI (P/E 11.93), increasing multiple compression risk
AI Fair Value Estimate
Based on comprehensive analysis
$477.57
+1.0% above current price

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