HCA Healthcare Inc (HCA)'s Winning Formula: Financial Metrics and Competitive Strengths

Delving into the Financial Health and Growth Trajectory of HCA Healthcare Inc

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 $253.01, HCA Healthcare Inc has witnessed a daily gain of 1.79%, marked against a three-month change of -7.73%. A thorough analysis, underlined by the GF Score, suggests that HCA Healthcare Inc is well-positioned for substantial growth in the near future.


What Is 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.

While the financial strength rank is moderate, the other ranks are quite high. GuruFocus assigned HCA Healthcare Inc a GF Score of 95 out of 100, which signals the highest outperformance potential.

Understanding HCA Healthcare Inc's Business

HCA Healthcare Inc is a Nashville-based healthcare provider organization operating the largest collection of acute-care hospitals in the United States. With a market cap of $67.72 billion and sales of $63.16 billion, the company boasts an operating margin of 14.63%. As of December 2022, HCA Healthcare 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.


Profitability Rank Breakdown

The Profitability Rank reflects HCA Healthcare Inc's impressive standing among its peers in generating profit. The company's Operating Margin has increased over the past five years, with a notable jump to 16.47% in 2021 before settling at 15.03% in 2022. Additionally, HCA Healthcare Inc's Gross Margin has consistently risen over the past five years, reaching 84.44% in 2022. This trend underscores the company's growing proficiency in transforming revenue into profit. The Piotroski F-Score confirms HCA Healthcare Inc's solid financial situation, and its strong Predictability Rank of 5 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 57.58% of companies in the Healthcare Providers & Services industry. Moreover, HCA Healthcare Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 17.6 and a five-year rate of 15.7. This trend accentuates the company's continued capability to drive growth.


Next Steps

Considering HCA Healthcare Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's ability to consistently generate profit and expand its operations, coupled with a high GF Score, makes it a compelling choice for investors seeking growth and stability. As the healthcare industry continues to evolve, HCA Healthcare Inc's strategic initiatives and competitive position may further solidify its market leadership.

GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.