Molina HealthcareMOH +5.62%80 ROE % is 1.37% as of Mar. 2026, which is 95% below its 10-year median of 28.11. GuruFocus rates MOH with a GF Score™ of 80/100 and a GF Value™ of $405.30 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 18 Healthcare Plans companies, Molina Healthcare ranks worse than 61.11% on this metric.
The historical rank and industry rank for Molina Healthcare's ROE % or its related term are showing as below:
MOH'
s ROE % Range Over the Past 10 Years
Min: -34.29 Med: 28.11 Max: 47.39
Current: 4.42
During the past 13 years, Molina Healthcare's highest ROE % was 47.39%. The lowest was -34.29%. And the median was 28.11%.
MOH's ROE % is ranked worse than 61.11% of 18
companies
in the Healthcare Plans industry
Industry Median: 8.165
vs MOH: 4.42
Molina Healthcare (NYSE:MOH) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Molina Healthcare ROE % Related Terms
Molina Healthcare ROE % Historical Data
* Premium members only.
The historical data trend for Molina Healthcare's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Healthcare Plans subindustry, Molina Healthcare's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Molina Healthcare ROE % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Molina Healthcare's ROE % distribution charts can be found below:
* The bar in red indicates where Molina Healthcare's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Molina Healthcare (MOH) has a ROE % of 1.37% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Molina Healthcare and its competitors. This is 95% below median its historical median of 28.11. According to the industry distribution chart, Molina Healthcare ranks #11 out of 18 companies in the Healthcare Plans industry, placing it in the top 61.1%.
Is Molina Healthcare's ROE % too high?
Molina Healthcare's current ROE % of 1.37% is 95% below median its 10-year median of 28.11. The Healthcare Plans industry median ROE % is 8.17. Molina Healthcare's value of 1.37% is 83.2% below this industry median. Based on the distribution chart, Molina Healthcare ranks #11 out of 18 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, Molina Healthcare has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Molina Healthcare's ROE % compare to OSCR and ALHC?
According to the Healthcare Plans industry distribution chart, Molina Healthcare ranks #11 out of 18 companies for ROE %. This places Molina Healthcare in the lower half of its industry. The industry median ROE % is 8.17. Molina Healthcare's value of 1.37% is 83.2% below this benchmark. While the company's 10-year median is 28.11 vs. the industry median of 8.17, Molina Healthcare has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Healthcare Plans company?
The median ROE % among Healthcare Plans companies is 8.17, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Molina Healthcare's current ROE % of 1.37% is 83.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Molina Healthcare and its competitors. For the Healthcare Plans industry, the median ROE % is 8.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Molina Healthcare's current ROE % is 1.37%, which is 95% below median its own 10-year median of 28.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Molina Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Molina Healthcare (MOH) is currently considered Significantly Undervalued. The stock's GF Value™ is $405.30, compared to a current price of $228.19 — trading 43.7% below its estimated fair value. The current ROE % is 1.37%, which is 95% below median its 10-year median of 28.11 and 83.2% below the Healthcare Plans industry median of 8.17. Molina Healthcare's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Molina Healthcare (MOH), the current ROE % is 1.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Molina Healthcare (MOH) Overvalued in 2026?
Based on GuruFocus' analysis, Molina Healthcare stock appears to be undervalued.
The current stock price of $228.19 is trading 43.7% below its estimated GF Value™ of $405.30.
GuruFocus considers Molina Healthcare to be Significantly Undervalued.
Key valuation signals for MOH:
ROE %: 1.37% (95% below median its 10-year median of 28.11)
GF Value™: $405.30 vs. price of $228.19 (43.7% below fair value)
Industry Position: 83.2% below the Healthcare Plans median (#11 of 18)
No single metric tells the full story. See the MOH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Molina Healthcare Inc provides medical insurance plans through Medicaid, the individual exchanges, and Medicare. The company operates in four reportable segments consisting of: 1) Medicaid; 2) Medicare; 3) Marketplace; and 4) Other. It manages health benefit risks for more than 5 million people, with more than 85% of those members coming through contracts with state governments for their Medicaid programs. Medicaid contracts in four states-California, New York, Texas, and Washington-account for over half of its enrollees.
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