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1. Company Snapshot

1.a. Company Description

HCA Healthcare, Inc., through its subsidiaries, provides health care services company in the United States.The company operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy.It also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities.


In addition, the company operates psychiatric hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services.As of December 31, 2021, it operated 182 hospitals, including 175 general and acute care hospitals, five psychiatric hospitals, and two rehabilitation hospitals; 125 freestanding surgery centers; and 21 freestanding endoscopy centers in 20 states and England.The company was formerly known as HCA Holdings, Inc.


HCA Healthcare, Inc.was founded in 1968 and is headquartered in Nashville, Tennessee.

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1.b. Last Insights on HCA

HCA Healthcare's recent performance was driven by strong Q3 2025 earnings, with revenues increasing 9.6% to $19.161 billion and net income attributable to HCA Healthcare, Inc. rising 29.4% to $1.643 billion. The company's quarterly profit and revenue beat expectations, fueled by solid patient volumes and same-facility admissions growth. As a result, HCA lifted its full-year outlook. Analysts have increased their forecasts following the upbeat Q3 earnings. According to some analysts, despite robust technicals, shares are near fair value, prompting a downgrade from buy to hold.

1.c. Company Highlights

2. HCA Healthcare's Strong Q3 2025 Earnings: A Closer Look

HCA Healthcare reported a robust financial performance in the third quarter of 2025, with revenues increasing by 9.6% to drive a 42% growth in diluted earnings per share as adjusted. The company's adjusted EBITDA margin improved due to disciplined operations and better performance in labor and supplies. Actual EPS came out at $6.96, significantly higher than estimates of $5.72. The revenue growth was driven by volume growth, improved payer mix, and complex services, with same-facility equivalent admissions growth of 2.4% and inpatient surgical volume growth of 1.4%. Net revenue per equivalent admission increased due to strong payer mix and improved dispute resolution results.

Publication Date: Oct -25

📋 Highlights
  • Strong EPS Growth: Adjusted diluted earnings per share surged 42%, driven by revenue growth of 9.6% from volume, payer mix, and complex services.
  • Medicaid Supplemental Payments Boost: $240 million net benefit to adjusted EBITDA from Medicaid programs, mainly from Tennessee and grandfathered applications in Kansas/Texas.
  • Operational Efficiency: Adjusted EBITDA margin improved via disciplined labor and supply chain management, with cash flow from operations at $4.4 billion.
  • Capital Deployment: $2.5 billion in share repurchases and $1.3 billion in capital expenditures, reflecting robust free cash flow conversion (40%+ EBITDA margin).

Revenue Drivers and Medicaid Supplemental Payments

The revenue growth from Medicaid supplemental payment programs drove about half of the overall increase in net revenue per equivalent admission in the third quarter, with HCA Healthcare receiving approximately $240 million in net benefit to adjusted EBITDA from these programs. This increase was largely driven by Tennessee program payments and approvals of grandfathered applications in Kansas and Texas, highlighting the significance of these programs to the company's financial performance.

Operating Leverage and Expense Management

The company's operating leverage and expense management improved in the quarter, with the growth in adjusted EBITDA reflecting strong operating performance and the increase in supplemental payments. As noted by Mike Marks, "We have a robust ongoing effort with supplies. Contracts reset every 2-3 years. We spend a lot of effort in those contract negotiations, and it's a component of our supply expense annual trends." This highlights the company's focus on managing costs and improving operational efficiency.

Valuation and Outlook

With a P/E Ratio of 74.33 and an EV/EBITDA of 11.36, the market appears to have high expectations for HCA Healthcare's future growth. The company's guidance for 2025 was updated to reflect its performance and outlook, with revenues expected to range between $75 billion and $76.5 billion. As the company looks to 2026, it is expected to continue its financial improvement, with analysts estimating revenue growth of 4.3%. The company's strong cash flow conversion and robust working capital management plans also position it well for future growth.

3. NewsRoom

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2 Soaring Healthcare Stocks to Buy and Hold for a Decade

Dec -04

Source: fool.com

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HCA Healthcare Is Caring For Patients And Investors Alike

Dec -01

Source: forbes.com

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Bell Asset Management Ltd Sells 5,838 Shares of HCA Healthcare, Inc. $HCA

Nov -27

Source: defenseworld.net

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HCA Healthcare, Inc. (HCA) Presents at Stephens Annual Investment Conference 2025 Transcript

Nov -20

Source: seekingalpha.com

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HCA Healthcare, Inc. (HCA) Presents at 7th Annual Wolfe Research Healthcare Conference Transcript

Nov -17

Source: seekingalpha.com

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HCA HealthONE Rose First in Colorado to Adopt Perimeter's Advanced OCT Imaging Technology for Use in Surgery

Nov -17

Source: prnewswire.com

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Allworth Financial LP Has $372,000 Stake in HCA Healthcare, Inc. $HCA

Nov -17

Source: defenseworld.net

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HCA Healthcare Surpasses 100,000 Pounds of Collected Medication in Year Seven of Annual “Crush the Crisis”

Nov -13

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Operating Hospitals and Related Health Care Entities

Expected Growth: 5.0%

The operating hospitals and related healthcare entities of HCA Healthcare, Inc. are driven by growing demand for healthcare services, increasing population, and aging demographics. Additionally, the company's expansion into outpatient services, investments in technology, and strategic acquisitions contribute to its 5.0% growth. Improving operational efficiency and effective management of healthcare costs also support this growth rate.

7. Detailed Products

Hospital Services

HCA Healthcare, Inc. operates a network of hospitals that provide a range of medical services, including emergency care, surgical services, and rehabilitation programs.

Outpatient Services

The company offers outpatient services, including urgent care centers, freestanding emergency departments, and physician practices.

Physician Services

HCA Healthcare, Inc. provides physician services, including primary care, specialty care, and surgical services.

Surgery Centers

The company operates ambulatory surgery centers, providing outpatient surgical services.

Urgent Care Centers

HCA Healthcare, Inc. operates urgent care centers, providing immediate, non-emergency care for acute illnesses and injuries.

Home Health and Hospice Services

The company provides home health and hospice services, offering medical care and support in the comfort of patients' homes.

8. HCA Healthcare, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

HCA Healthcare, Inc. operates in a highly regulated industry, and the threat of substitutes is low due to the complexity and high barriers to entry.

Bargaining Power Of Customers

Patients have some bargaining power due to the availability of alternative healthcare providers, but HCA Healthcare, Inc.'s large network and reputation mitigate this power.

Bargaining Power Of Suppliers

HCA Healthcare, Inc. has a diversified supplier base, and the bargaining power of suppliers is low due to the company's large scale and negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles, high capital requirements, and the need for specialized expertise.

Intensity Of Rivalry

The healthcare industry is highly competitive, and HCA Healthcare, Inc. faces intense rivalry from other healthcare providers, including non-profit and for-profit organizations.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 104.71%
Debt Cost 5.86%
Equity Weight -4.71%
Equity Cost 12.32%
WACC 5.55%
Leverage -2221.82%

11. Quality Control: HCA Healthcare, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AbbVie

A-Score: 6.6/10

Value: 3.0

Growth: 4.7

Quality: 7.5

Yield: 7.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
J&J

A-Score: 6.4/10

Value: 3.0

Growth: 4.0

Quality: 7.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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McKesson

A-Score: 6.2/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
HCA Healthcare

A-Score: 5.9/10

Value: 6.5

Growth: 7.2

Quality: 5.0

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
NHC

A-Score: 5.9/10

Value: 5.4

Growth: 4.8

Quality: 6.5

Yield: 5.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Regeneron Pharmaceuticals

A-Score: 4.2/10

Value: 4.2

Growth: 6.4

Quality: 8.6

Yield: 0.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

486.7$

Current Price

486.7$

Potential

-0.00%

Expected Cash-Flows