Recent News
October 2025 saw multiple investor-alerts and class-action filings alleging Molina misled investors about rising medical costs and related disclosures; law firms issued notices seeking lead plaintiffs in the proposed suits. October filings referenced a class period from February 5, 2025 through July 23, 2025. Additional investor-notices appeared throughout mid-October.
Technical Analysis
Directional indicators: ADX at 22.95 signals an emerging trend rather than a strong directional move; DI+ shows a dip-and-reversal, indicating bullish directional pressure, while DI- shows an increasing reading, indicating concurrent bearish pressure—this configuration suggests short-term tug-of-war that favors intermittent rallies but limits conviction.
MACD: the MACD displays a dip-and-reversal pattern that implies building bullish momentum, yet the MACD (2.94) remains below its signal line (3.50), tempering immediate confirmation of sustained upside.
MRO: the MRO reads -0.81, indicating price sits slightly below the model target and therefore implies potential upward pressure if momentum shifts.
RSI: at 51.42 with a peak-and-reversal, the RSI signals weakening upside momentum from recent highs and increases the likelihood of a consolidation phase before any clear directional expansion.
Price vs averages and bands: the $197.49 close trades just above the 20-day average ($196.46) and well above the 50-day average ($182.22), while remaining below the 200-day average ($260.62). Price sits inside the upper Bollinger band range (upper 1σ $201.62), with the SuperTrend upper level near $202.82 acting as near-term resistance; this structure supports limited upside scope unless price clears the 200-day average. WMDST valuation of over-valued aligns with the longer-term divergence from the 200-day average.
Fundamental Analysis
Earnings and margins: adjusted diluted EPS registered $5.48 versus an estimate of $5.53, an EPS surprise of -0.90%. GAAP net income for the quarter totaled $255 million; the company revised full-year guidance during the July 23 release.
Profitability trends: operating (EBIT) margin stands at 3.26%, below the industry peer mean of 6.42% and slightly below the industry peer median of 3.51%; operating margin fell QoQ by -15.96% and YoY by -25.70%, reflecting elevated medical-cost pressure driving margin compression.
Growth and revenue: total revenue reached $11,427 million for the period, with YoY revenue growth at 2.51% but revenue growth QoQ down -59.30%, indicating near-term deceleration in sequential growth dynamics.
Cash flow and liquidity: operating cash flow moved negative at -$302 million and free cash flow stood at -$344 million, producing a free-cash-flow yield of -3.04%. Cash and short-term investments total $8,809 million while the cash ratio equals 1.12, preserving near-term liquidity despite negative operating cash conversion.
Leverage and returns: debt-to-assets equals 21.98% and debt-to-equity equals 0.77; interest-coverage measures 7.77x. Return on equity reads 5.54% and return on assets 1.57%, both down QoQ and YoY, consistent with reduced profitability.
Valuation multiples: trailing PE at 49.79 sits near the industry peer mean (≈50.48) and above the industry peer median (≈43.11); price-to-book at 2.46 sits above the industry peer mean (≈1.96) and median (≈1.68). Enterprise multiple measures about 14.09. WMDST values the stock as over-valued given the combination of compressed margins, negative free cash flow, and multiples near peer means despite weakening fundamentals.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-23 |
| NEXT REPORT DATE: | 2025-10-23 |
| CASH FLOW | Begin Period Cash Flow | $ 5.0 B |
| Operating Cash Flow | $ -302.00 M | |
| Capital Expenditures | $ -42.00 M | |
| Change In Working Capital | $ -625.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -363.00 M | |
| End Period Cash Flow | $ 4.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 11.4 B | |
| Forward Revenue | $ 3.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 10.3 B | |
| Depreciation | $ 58.0 M | |
| Depreciation and Amortization | $ 58.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 11.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.2 B | |
| EBITDA | $ 431.0 M | |
| EBIT | $ 373.0 M | |
| Operating Income | $ 373.0 M | |
| Interest Income | — | |
| Interest Expense | $ 48.0 M | |
| Net Interest Income | $ -48.00 M | |
| Income Before Tax | $ 325.0 M | |
| Tax Provision | $ 70.0 M | |
| Tax Rate | 21.5 % | |
| Net Income | $ 255.0 M | |
| Net Income From Continuing Operations | $ 255.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 5.53 | |
| EPS Actual | $ 5.48 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -0.904 % | |
| Forward EPS | $ 6.43 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 16.2 B | |
| Intangible Assets | $ 2.2 B | |
| Net Tangible Assets | $ 2.4 B | |
| Total Current Assets | $ 13.1 B | |
| Cash and Short-Term Investments | $ 8.8 B | |
| Cash | $ 4.5 B | |
| Net Receivables | $ 3.9 B | |
| Inventory | — | |
| Long-Term Investments | $ 439.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.1 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 7.9 B | |
| Net Debt | — | |
| Total Debt | $ 3.6 B | |
| Total Liabilities | $ 11.6 B | |
| EQUITY | ||
| Total Equity | $ 4.6 B | |
| Retained Earnings | $ 4.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 85.24 | |
| Shares Outstanding | 54.000 M | |
| Revenue Per-Share | $ 211.61 | |
| VALUATION | Market Capitalization | $ 11.3 B |
| Enterprise Value | $ 6.1 B | |
| Enterprise Multiple | 14.087 | |
| Enterprise Multiple QoQ | -41.553 % | |
| Enterprise Multiple YoY | -45.483 % | |
| Enterprise Multiple IPRWA | high: 206.444 mean: 51.918 median: 42.564 MOH: 14.087 low: -33.18 |
|
| EV/R | 0.531 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.521 | |
| Asset To Liability | 1.397 | |
| Debt To Capital | 0.436 | |
| Debt To Assets | 0.22 | |
| Debt To Assets QoQ | -4.355 % | |
| Debt To Assets YoY | 40.013 % | |
| Debt To Assets IPRWA | high: 0.904 mean: 0.343 median: 0.25 MOH: 0.22 low: 0.001 |
|
| Debt To Equity | 0.774 | |
| Debt To Equity QoQ | -11.412 % | |
| Debt To Equity YoY | 57.246 % | |
| Debt To Equity IPRWA | high: 4.335 mean: 1.009 MOH: 0.774 median: 0.765 low: -1.707 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.459 | |
| Price To Book QoQ | -38.105 % | |
| Price To Book YoY | -36.391 % | |
| Price To Book IPRWA | high: 7.262 MOH: 2.459 mean: 1.96 median: 1.685 low: -7.254 |
|
| Price To Earnings (P/E) | 49.793 | |
| Price To Earnings QoQ | -4.516 % | |
| Price To Earnings YoY | -8.038 % | |
| Price To Earnings IPRWA | high: 201.515 mean: 50.477 MOH: 49.793 median: 43.109 low: -187.532 |
|
| PE/G Ratio | -5.046 | |
| Price To Sales (P/S) | 0.99 | |
| Price To Sales QoQ | -35.518 % | |
| Price To Sales YoY | -47.728 % | |
| Price To Sales IPRWA | high: 12.717 mean: 2.287 median: 1.192 MOH: 0.99 low: 0.067 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.669 | |
| Forward PE/G | -4.831 | |
| Forward P/S | 2.911 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -5.516 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.701 | |
| Asset Turnover Ratio QoQ | 0.691 % | |
| Asset Turnover Ratio YoY | 8.927 % | |
| Asset Turnover Ratio IPRWA | high: 1.071 MOH: 0.701 mean: 0.391 median: 0.385 low: 0.07 |
|
| Receivables Turnover | 3.107 | |
| Receivables Turnover Ratio QoQ | -5.376 % | |
| Receivables Turnover Ratio YoY | -18.822 % | |
| Receivables Turnover Ratio IPRWA | high: 7.227 median: 3.879 mean: 3.584 MOH: 3.107 low: 0.428 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 29.371 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.182 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -0.724 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.0 B | |
| Net Invested Capital | $ 8.0 B | |
| Invested Capital | $ 8.0 B | |
| Net Tangible Assets | $ 2.4 B | |
| Net Working Capital | $ 5.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.118 | |
| Current Ratio | 1.665 | |
| Current Ratio QoQ | 2.41 % | |
| Current Ratio YoY | 5.794 % | |
| Current Ratio IPRWA | high: 2.697 MOH: 1.665 mean: 1.017 median: 0.883 low: 0.025 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.267 | |
| Cost Of Debt | 1.028 % | |
| Interest Coverage Ratio | 7.771 | |
| Interest Coverage Ratio QoQ | -22.83 % | |
| Interest Coverage Ratio YoY | -49.866 % | |
| Interest Coverage Ratio IPRWA | high: 34.501 mean: 8.338 MOH: 7.771 median: 6.997 low: -13.311 |
|
| Operating Cash Flow Ratio | -0.009 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.321 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.08 % | |
| Revenue Growth | 2.512 % | |
| Revenue Growth QoQ | -59.3 % | |
| Revenue Growth YoY | -588.716 % | |
| Revenue Growth IPRWA | high: 14.746 % mean: 3.179 % median: 2.641 % MOH: 2.512 % low: -8.99 % |
|
| Earnings Growth | -9.868 % | |
| Earnings Growth QoQ | -148.382 % | |
| Earnings Growth YoY | -534.905 % | |
| Earnings Growth IPRWA | high: 250.0 % MOH: -9.868 % mean: -13.513 % median: -18.379 % low: -240.0 % |
|
| MARGINS | ||
| Gross Margin | 10.213 % | |
| Gross Margin QoQ | -11.06 % | |
| Gross Margin YoY | -16.88 % | |
| Gross Margin IPRWA | high: 96.718 % mean: 24.074 % median: 13.742 % MOH: 10.213 % low: -3.758 % |
|
| EBIT Margin | 3.264 % | |
| EBIT Margin QoQ | -15.963 % | |
| EBIT Margin YoY | -25.7 % | |
| EBIT Margin IPRWA | high: 20.811 % mean: 6.419 % median: 3.507 % MOH: 3.264 % low: -12.746 % |
|
| Return On Sales (ROS) | 3.264 % | |
| Return On Sales QoQ | -15.963 % | |
| Return On Sales YoY | -25.7 % | |
| Return On Sales IPRWA | high: 17.775 % mean: 6.711 % MOH: 3.264 % median: 3.092 % low: -33.294 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -344.00 M | |
| Free Cash Flow Yield | -3.04 % | |
| Free Cash Flow Yield QoQ | -409.888 % | |
| Free Cash Flow Yield YoY | 131.355 % | |
| Free Cash Flow Yield IPRWA | high: 10.465 % median: 1.538 % mean: 1.334 % MOH: -3.04 % low: -16.999 % |
|
| Free Cash Growth | -304.762 % | |
| Free Cash Growth QoQ | 77.715 % | |
| Free Cash Growth YoY | 31.618 % | |
| Free Cash Growth IPRWA | high: 530.898 % mean: 27.125 % median: -66.168 % MOH: -304.762 % low: -877.035 % |
|
| Free Cash To Net Income | -1.349 | |
| Cash Flow Margin | -0.586 % | |
| Cash Flow To Earnings | -0.263 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.565 % | |
| Return On Assets QoQ | -15.951 % | |
| Return On Assets YoY | -20.194 % | |
| Return On Assets IPRWA | high: 4.764 % MOH: 1.565 % mean: 1.328 % median: 1.014 % low: -5.726 % |
|
| Return On Capital Employed (ROCE) | 4.476 % | |
| Return On Equity (ROE) | 0.055 | |
| Return On Equity QoQ | -19.873 % | |
| Return On Equity YoY | -10.861 % | |
| Return On Equity IPRWA | high: 0.216 MOH: 0.055 median: 0.013 mean: -0.104 low: -0.777 |
|
| DuPont ROE | 5.723 % | |
| Return On Invested Capital (ROIC) | 3.668 % | |
| Return On Invested Capital QoQ | -12.458 % | |
| Return On Invested Capital YoY | -171.95 % | |
| Return On Invested Capital IPRWA | high: 7.951 % MOH: 3.668 % mean: 2.944 % median: 2.683 % low: -10.982 % |
|