RE: MOH
52 week high was $359.97 and now trading at $134.51.
Revenue is growing strong with nine months this year growing 13% over 2024 ($34,051M vs. $30,151M) and YoY growth was up 19% ($40,650M vs. $34,072M). They're buying up other businesses which is a good driver for this revenue growth.
They have $4,221M in cash + another $4,226M in investments against $3,664M in LT debt. They did just close on $850M of new senior notes with a 6.5% rate and mature February 2031 so add that to the LT debt. Nearest maturity is the 2028 debt which is $800M outstanding due in 2028. Rest is due in 2030+. They have a BB rating by S&P and Ba2 from Moody's.
FCF of $544M (after debt was $1,284M) and "core" FCF was $1,442M in 2024. Now if you include the acquisitions into FCF (I always do) then FCF was $200M and core $1,098M. Super low CAPEX business with only $275M spent total over last three years.
Historical EV/EBITDA is around 10-12x and right now it's ~4x so pretty cheap compared to historical multiples. ROIC > 10%.
Class action securities fraud lawsuit was recently filed as they appear to have made false statements on their premium rates and medical costs trends. Likely a buy when others are fearful moment here.
They've been buying back common stock as they had 55.5M shares outstanding in their 10-K and recent 10-Q shows 51.4M.
Seems like a buy.
Happy investing,
Sean |
