Molina Healthcare

Methodology

Molina's focus on Medicaid and Marketplace plans creates earnings visibility from government program growth, though medical cost ratio management requires constant attention. Membership growth from state contract wins provides predictability. The calculation works reasonably well when normalizing for medical cost ratio fluctuations and focusing on sustainable underwriting margins.

Methodology

Molina typically trades at moderate PEG ratios reflecting steady Medicaid enrollment growth offset by execution risks in medical cost management. The metric should account for medical loss ratio trends and state contract dynamics. Compare to Centene and other government-focused managed care peers while considering operational efficiency and membership quality.

Methodology

Molina pays no dividend, making PEGY equal to PEG as management prioritizes reinvestment in operational infrastructure and growth opportunities in government programs. Capital allocation focuses on improving care management systems and expanding in attractive Medicaid markets. For this growth-focused insurer, earnings reinvestment matters more than current shareholder income.