HCA - Embedded Expectations Analysis - 2018 11 16
HCA Healthcare, Inc. (HCA:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with an 18.0x Uniform P/E. However, even at these levels, the market has muted expectations for the firm, and management has concerns about the impact of Hurricane Florence, maintaining strong cash flows, and expanding their high-intensity businessSpecifically, management appears concerned about the financial impact of Hurricane Florence on their businesses in the Carolinas, and may lack confidence in their ability to maintain elevated free cash flow generation levels. Moreover, they may lack confidence in their ability to focus their strategic efforts on growing their
high-intensity business, and may be concerned about the performance of their new facilities purchased in 2018. Furthermore, they may be concerned about the timeline of their Mission Health acquisition close date, and may lack confidence in the sustainability of increased cardiology procedures in Q3
HCA Healthcare is a holding company. Through its subsidiaries, partnerships and joint ventures, the company owns and operates hospitals and related health care entities. Most of the company's general, acute care hospitals provide medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic services and emergency services. The general, acute care hospitals also provide outpatient services such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. The company's psychiatric hospitals provide therapeutic programs including child, adolescent and adult psychiatric care, adolescent and adult alcohol and drug abuse treatment and counseling.
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