HCA Healthcare (HCA): Is It a Buy? – Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

HCA Healthcare Inc (HCA)

HCA Healthcare is a Nashville-based healthcare provider organization operating the largest collection of acute-care hospitals in the United States. As of June 2024, the firm owned and operated 188 hospitals, 123 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.

A quick look at the share price history (below) over the past twelve months shows that the price is up 20.60%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $90.53 Billion

Enterprise Value: $134.39 Billion

Operating Earnings

Operating Earnings: $9.75 Million

Acquirer’s Multiple

Acquirer’s Multiple: 13.80

Free Cash Flow (TTM)

Free Cash Flow: $5.43 Billion

FCF/MC Yield %:

FCF/MC Yield: 6

Shareholder Yield %:

Shareholder Yield: 5.30

Other Indicators

Piotroski F Score: 7.00

Buyback Yield %: 4.60

ROA (5 Year Avge%): 17