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ABOUT MOLINA HEALTHCARE Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces (the Marketplace ). Molina was founded in 1980 as a provider organization serving low-income families in Southern California and reincorporated in Delaware in 2002.
Operating margin is thin at 1.72%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 11.7%, still solid. Margins contracted 2.5pp, which offsets some of the top-line progress.
Free cash flow declined 217% versus the prior year, cash generation momentum has weakened. ROIC dropped from 17.96% to 8.39%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$45.43B
▲ +11.7% YoY
Net Income (TTM)
$472M
▼ -60.0% YoY
Op. Margin
1.72%
▼ -2.5pp YoY
ROIC
8.39%
▼ -9.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$636M
▼ -216.9% YoY
Op. Cash Flow (TTM)
-$535M
▼ -183.1% YoY
Net Debt
-$4.21B
Net Cash Position
Cash & Equiv.
$8.26B
5Y CAGR: +18.5%
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