HCA

HCA Holdings Inc

Healthcare


Presented:02/03/2016
Price:$70.20
Cap:$29.20B
Current Price:$401.26
Cap:$103.55B

Presented

Date02/03/2016
Price$70.20
Market Cap$29.20B
Ent Value$59.43B
P/E Ratio14.07x
Book ValueN/A
Div Yield0%
Shares O/S415.92M
Ave Daily Vol4,130,683
Short Int2.41%

Current

Price$401.26
Market Cap$103.55B
HCA Holdings, Inc. owns and operates hospitals, freestanding surgery centers, diagnostic and imaging centers, radiation and oncology therapy centers, comprehensive rehabilitation and physical therapy centers and various other facilities. It provides services such medical specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, as well as diagnostic and emergency services. The company operates through two geographically organized groups: National and American Groups. HCA Holdings was founded on November 22, 2010 and is headquartered in Nashville, TN.

Publicly traded companies mentioned herein: Community Health Systems (CYH), HCA Holdings Inc (HCA), LifePoint Health Inc (LPNT), Tenet Healthcare Corp (THC)

Highlights

The presenter is long shares of HCA Holdings (HCA) and views the risk/ reward as favorable at ~$70. The stock traded down sharply after management pre announced earnings that fell short of expectations and took guidance down in the 3rd Quarter of 2015 (October), but he feels good about the entry point and noted that “every time I’ve bought the dip in HCA it’s turned out to be a good decision.” While the payer mix may be slightly adverse and there have been labor cost issues, the subsequent Q4 beat and reasonably solid guidance give the presenter confidence that any further downside is limited and “the highest quality name” is too cheap at sub-11x the high end of 2016 EPS guidance and just 7x EBITDA.

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Idea Discussion

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