HCA Healthcare

Methodology

HCA Healthcare's hospital operations generate relatively predictable earnings from patient volumes and payor mix, though labor costs and reimbursement rates create volatility. The company's scale advantages and market concentration in key regions provide pricing power. This calculation works reasonably well given the essential nature of acute care services, though regulatory changes and cost inflation in healthcare labor markets require careful consideration.

Methodology

HCA typically shows moderate PEG ratios reflecting steady growth from procedure volumes, pricing, and strategic facility investments. The company's for-profit hospital model generates strong cash flows but faces reimbursement pressure. Compare to other healthcare facilities operators to assess whether HCA's scale advantages and market positions justify valuations relative to peers facing similar labor and regulatory dynamics.

Methodology

HCA pays a modest dividend as management prioritizes debt management and strategic capital deployment in high-return facility investments. The company generates substantial free cash flow but balances capital returns with maintaining balance sheet flexibility. Total return combines modest dividends with earnings growth from volume increases and strategic market expansion in growing Sun Belt regions.