Molina Healthcare, Inc. (MOH)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry little debt, and sell at a discount to intrinsic value. Molina fails on current numbers. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $11.1B and net income $38.0M, a 0.34% margin; in fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $11.5B and net income $79.0M. In fiscal year 2025, revenue was $45.4B but net income only $472.0M, down from $1.2B in fiscal year 2024; diluted EPS fell to $8.92 from $20.42. The FairStock Lynch category is SLOW GROWER—Shrinking, with profit -6.8% a year over five years. FairStock ratios as of the 2026-10-26 close show P/E 1,279.94, P/B 2.55, ROE -0.16%, ROCE 1.16%, D/E 0.95, Piotroski 4/9, Altman 1.98, and FCF yield 2.2%. The Graham Number is $16.99, far below the $204.79 close, so there is no Graham margin of safety. Trailing free cash flow is $238.0M, only a 2.2% FairStock FCF yield at the $10.7B market cap. The business has scale in Medicaid and Medicare, but low margins and reimbursement pressure are visible; there is no evidence here of pricing power or a durable moat. Growth has reversed: revenue fell in fiscal Q3 2026 versus fiscal Q3 2025 and profits collapsed. At the recent price, the market is paying for a recovery that the filed figures do not yet show. I would want normalized earnings and better cash generation before calling this a bargain.

In plain English: Molina Healthcare provides government health plans, mainly Medicaid and Medicare, for low-income families and individuals. The business looks weak right now: revenue slipped and profit fell sharply in the latest quarter, leaving only a tiny profit margin. At the 2026-10-26 close, the stock looks expensive compared with the profits the company is currently producing and its accounting value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer