2024-01-26 00:18:14 ET
Summary
- Mohlina Healthcare, Inc. market value has rallied in the last 12 months on strong fundamentals.
- MOH is a managed healthcare services company that generates consistent cash flows and requires minimal incremental capital to maintain its competitive position.
- The company is well-positioned for growth with recent acquisitions, successful reinvestment of free cash flow, and robust forward growth estimates.
Investment Briefing
In the 12 months since our January 2023 report, where the recommendation was to buy the common stock of Molina Healthcare, Inc. ( MOH ) in the $300s, investors have lifted the bid on the company's market value by $3.7Bn or around $50 per share. It now trades in the $350s at the time of publication (Figure 1).
Figure 1.
Bernard Investments' holdings are concentrated in high-quality companies that (i) require minimal incremental capital to maintain their already high competitive position, (ii) produce a rate of earnings against the capital required to conduct business, and (iii) spin off consistent cash flows to shareholders without jeopardising the growth trajectory. It is my job to source these selective opportunities. In our estimation, there is strong evidence that suggests MOH is primed to compound its corporate valuation over the coming 3–5 years and unlock risk capital for its shareholders. In this report, I will share our insights and judgement on MOH for 2024 and beyond....
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For further details see:
Molina Healthcare: Attractive Risk-Reward Calculus Over All Horizons