Recent News
On January 27, 2026, the Centers for Medicare & Medicaid Services proposed a near‑flat 2027 Medicare Advantage payment update that industry groups warned could force benefit cuts and program changes; the proposal prompted broad commentary on reimbursement risk for major MA participants. Additional coverage in early January highlighted signs of operational stabilization after a difficult 2025, but analysts continued to flag rising medical costs and reimbursement uncertainty as the dominant near‑term narrative.
Technical Analysis
ADX at 27.89 indicates a strong trend environment that increases the probability of directional follow‑through rather than range‑bound chop.
DI‑ increasing signals sellers hold the directional edge; DI+ registered a dip & reversal, which signals recent renewed buying attempts, but DI‑ remains dominant, aligning with the stronger trend reading.
MACD stands negative at -2.01 and the MACD trend shows decreasing momentum with the MACD below its signal (-1.34), a bearish momentum profile that favors lower short‑term price bias until momentum reverses.
MRO at -37.87 indicates the price sits materially below the model target and implies mean‑reversion upside pressure; the decreasing MRO trend suggests the magnitude of that gap widened recently, preserving potential for a corrective bounce if other momentum indicators turn.
RSI at 44.85 with a decreasing trend confirms below‑50 momentum but does not signal oversold extremes, consistent with continued distribution rather than capitulation.
Price sits below the 12‑ and 26‑day EMAs (price12d EMA 36.35, price26d EMA 38.62) and below the 20‑ and 50‑day averages, while ichimoku Senkou values around 41 place the current price beneath the cloud; the position relative to short‑ and intermediate‑term averages reinforces near‑term downside bias unless price reclaims those averages.
Bollinger band structure (20‑day average 37.51 with ±1σ at 32.76/42.26) shows the close near the lower volatility band, supporting the case for higher intraday volatility and probability of mean reversion toward the 20‑day average if momentum eases.
Fundamental Analysis
Profitability shows stress: EBIT stands at -$1,375,000,000 and EBIT margin at -2.765%, below the industry peer mean of 5.683% and below the industry peer median of 2.026%, indicating margins trail peers on an absolute basis. QoQ EBIT margin contracted sharply (‑78.875%), and YoY EBIT margin declined by ‑317.374%, underscoring acute recent margin compression tied to elevated medical costs and reserve build.
Net income totaled -$1,101,000,000 with operating income at -$1,232,000,000; operating margin sits at -2.478%, below the industry peer mean margin. EPS actual registered -$1.19 versus an estimate of -$1.22, producing an EPS surprise ratio of +2.459%, which reflects a modest beat on consensus despite negative earnings.
Liquidity and cash flow provide resilience: cash and short‑term investments total $20.32B, operating cash flow reached $437M, and free cash flow registered $224M with a free cash flow yield of 1.105%—the free cash flow yield sits below the industry peer mean but signals positive cash generation despite operating losses.
Leverage metrics show moderate leverage: total debt $18.162B with debt‑to‑equity at 0.91 (91.02%) and debt‑to‑assets at 23.665%; interest expense remains low relative to debt, with a cost of debt near 0.961%, but interest coverage is negative, reflecting current operating losses reducing cushion for interest obligations.
Revenue and efficiency: total revenue $49.725B with revenue growth near flat (0.07% YoY) and an asset turnover ratio of 0.626, slightly above the industry peer mean of 0.54476, indicating relatively efficient use of assets to generate sales despite margin stress.
The current valuation as determined by WMDST classifies the stock as under‑valued, driven by a stretched profitability picture offset by a large cash base and positive, if modest, free cash flow—valuation reflects the balance between policy‑driven reimbursement risk and tangible cash/cash‑flow support.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-06 |
| NEXT REPORT DATE: | 2026-05-08 |
| CASH FLOW | Begin Period Cash Flow | $ 17.2 B |
| Operating Cash Flow | $ 437.0 M | |
| Capital Expenditures | $ -213.00 M | |
| Change In Working Capital | $ 723.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 772.0 M | |
| End Period Cash Flow | $ 18.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.7 B | |
| Forward Revenue | $ -5.66 B | |
| COSTS | ||
| Cost Of Revenue | $ 47.3 B | |
| Depreciation | $ 160.0 M | |
| Depreciation and Amortization | $ 329.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 51.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.5 B | |
| EBITDA | $ -1.05 B | |
| EBIT | $ -1.38 B | |
| Operating Income | $ -1.23 B | |
| Interest Income | — | |
| Interest Expense | $ 168.0 M | |
| Net Interest Income | $ -168.00 M | |
| Income Before Tax | $ -1.54 B | |
| Tax Provision | $ -443.00 M | |
| Tax Rate | 28.71 % | |
| Net Income | $ -1.10 B | |
| Net Income From Continuing Operations | $ -1.10 B | |
| EARNINGS | ||
| EPS Estimate | $ -1.22 | |
| EPS Actual | $ -1.19 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 2.459 % | |
| Forward EPS | $ 1.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 76.7 B | |
| Intangible Assets | $ 15.4 B | |
| Net Tangible Assets | $ 4.6 B | |
| Total Current Assets | $ 40.4 B | |
| Cash and Short-Term Investments | $ 20.3 B | |
| Cash | $ 17.9 B | |
| Net Receivables | $ 18.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 1.6 B | |
| LIABILITIES | ||
| Accounts Payable | $ 13.6 B | |
| Short-Term Debt | $ 50.0 M | |
| Total Current Liabilities | $ 36.7 B | |
| Net Debt | — | |
| Total Debt | $ 18.2 B | |
| Total Liabilities | $ 56.7 B | |
| EQUITY | ||
| Total Equity | $ 20.0 B | |
| Retained Earnings | $ 8.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 40.57 | |
| Shares Outstanding | 491.757 M | |
| Revenue Per-Share | $ 101.12 | |
| VALUATION | Market Capitalization | $ 20.3 B |
| Enterprise Value | $ 18.1 B | |
| Enterprise Multiple | -17.31 | |
| Enterprise Multiple QoQ | 588.607 % | |
| Enterprise Multiple YoY | -198.204 % | |
| Enterprise Multiple IPRWA | high: 169.984 median: 51.214 mean: 46.466 CNC: -17.31 low: -93.578 |
|
| EV/R | 0.364 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.846 | |
| Asset To Liability | 1.354 | |
| Debt To Capital | 0.477 | |
| Debt To Assets | 0.237 | |
| Debt To Assets QoQ | 10.481 % | |
| Debt To Assets YoY | 17693.233 % | |
| Debt To Assets IPRWA | high: 0.927 mean: 0.352 median: 0.264 CNC: 0.237 low: 0.007 |
|
| Debt To Equity | 0.91 | |
| Debt To Equity QoQ | 8.445 % | |
| Debt To Equity YoY | 21728.297 % | |
| Debt To Equity IPRWA | high: 3.121 CNC: 0.91 median: 0.73 mean: -1.989 low: -8.08 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.016 | |
| Price To Book QoQ | 23.642 % | |
| Price To Book YoY | -14.192 % | |
| Price To Book IPRWA | high: 9.281 mean: 2.135 median: 1.75 CNC: 1.016 low: -0.324 |
|
| Price To Earnings (P/E) | -34.628 | |
| Price To Earnings QoQ | -149.448 % | |
| Price To Earnings YoY | -143.95 % | |
| Price To Earnings IPRWA | high: 328.106 median: 71.489 mean: 62.45 CNC: -34.628 low: -73.764 |
|
| PE/G Ratio | 0.102 | |
| Price To Sales (P/S) | 0.408 | |
| Price To Sales QoQ | 17.685 % | |
| Price To Sales YoY | -46.8 % | |
| Price To Sales IPRWA | high: 14.8 mean: 2.599 median: 1.008 CNC: 0.408 low: 0.146 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 37.668 | |
| Forward PE/G | -0.111 | |
| Forward P/S | -3.535 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1119.575 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.626 | |
| Asset Turnover Ratio QoQ | 6.149 % | |
| Asset Turnover Ratio YoY | 26.435 % | |
| Asset Turnover Ratio IPRWA | high: 1.261 CNC: 0.626 mean: 0.545 median: 0.415 low: 0.11 |
|
| Receivables Turnover | 2.413 | |
| Receivables Turnover Ratio QoQ | 8.44 % | |
| Receivables Turnover Ratio YoY | 12.339 % | |
| Receivables Turnover Ratio IPRWA | high: 10.922 mean: 4.0 median: 3.758 CNC: 2.413 low: 0.421 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 37.816 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 33.528 CNC: 0 mean: -1.551 median: -7.057 low: -17.884 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 13.534 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.331 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 37.3 B | |
| Net Invested Capital | $ 37.4 B | |
| Invested Capital | $ 37.4 B | |
| Net Tangible Assets | $ 4.6 B | |
| Net Working Capital | $ 3.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.554 | |
| Current Ratio | 1.1 | |
| Current Ratio QoQ | 1.443 % | |
| Current Ratio YoY | -0.81 % | |
| Current Ratio IPRWA | high: 2.726 CNC: 1.1 mean: 1.074 median: 0.965 low: 0.842 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -17.363 | |
| Cost Of Debt | 0.961 % | |
| Interest Coverage Ratio | -8.185 | |
| Interest Coverage Ratio QoQ | -78.607 % | |
| Interest Coverage Ratio YoY | -371.241 % | |
| Interest Coverage Ratio IPRWA | high: 26.873 mean: 7.605 median: 5.671 low: -5.925 CNC: -8.185 |
|
| Operating Cash Flow Ratio | 0.027 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.968 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -6.505 % | |
| Revenue Growth | 0.07 % | |
| Revenue Growth QoQ | -96.401 % | |
| Revenue Growth YoY | -102.415 % | |
| Revenue Growth IPRWA | high: 13.35 % median: 2.743 % mean: 2.421 % CNC: 0.07 % low: -7.264 % |
|
| Earnings Growth | -338.0 % | |
| Earnings Growth QoQ | -18.061 % | |
| Earnings Growth YoY | 567.76 % | |
| Earnings Growth IPRWA | high: 100.0 % median: -5.274 % mean: -22.416 % low: -249.457 % CNC: -338.0 % |
|
| MARGINS | ||
| Gross Margin | 4.961 % | |
| Gross Margin QoQ | -24.179 % | |
| Gross Margin YoY | -45.585 % | |
| Gross Margin IPRWA | high: 96.255 % mean: 25.748 % median: 12.836 % CNC: 4.961 % low: -5.777 % |
|
| EBIT Margin | -2.765 % | |
| EBIT Margin QoQ | -78.875 % | |
| EBIT Margin YoY | -317.374 % | |
| EBIT Margin IPRWA | high: 20.352 % mean: 5.683 % median: 2.026 % CNC: -2.765 % low: -12.278 % |
|
| Return On Sales (ROS) | -2.478 % | |
| Return On Sales QoQ | 483.059 % | |
| Return On Sales YoY | -294.811 % | |
| Return On Sales IPRWA | high: 20.384 % mean: 7.488 % median: 1.998 % CNC: -2.478 % low: -10.112 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 224.0 M | |
| Free Cash Flow Yield | 1.105 % | |
| Free Cash Flow Yield QoQ | -83.393 % | |
| Free Cash Flow Yield YoY | -146.605 % | |
| Free Cash Flow Yield IPRWA | high: 7.984 % mean: 1.575 % CNC: 1.105 % median: 1.041 % low: -12.708 % |
|
| Free Cash Growth | -80.437 % | |
| Free Cash Growth QoQ | 193.63 % | |
| Free Cash Growth YoY | 133.266 % | |
| Free Cash Growth IPRWA | high: 184.763 % mean: -62.25 % median: -72.187 % CNC: -80.437 % low: -369.889 % |
|
| Free Cash To Net Income | -0.203 | |
| Cash Flow Margin | 1.981 % | |
| Cash Flow To Earnings | -0.895 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -1.386 % | |
| Return On Assets QoQ | -82.391 % | |
| Return On Assets YoY | -504.082 % | |
| Return On Assets IPRWA | high: 4.855 % mean: 1.296 % median: 1.157 % CNC: -1.386 % low: -4.574 % |
|
| Return On Capital Employed (ROCE) | -3.433 % | |
| Return On Equity (ROE) | -0.055 | |
| Return On Equity QoQ | -82.568 % | |
| Return On Equity YoY | -614.739 % | |
| Return On Equity IPRWA | high: 0.088 median: 0.023 mean: -0.054 CNC: -0.055 low: -0.444 |
|
| DuPont ROE | -5.383 % | |
| Return On Invested Capital (ROIC) | -2.624 % | |
| Return On Invested Capital QoQ | -84.357 % | |
| Return On Invested Capital YoY | 3.839 % | |
| Return On Invested Capital IPRWA | high: 7.875 % mean: 2.577 % median: 2.088 % CNC: -2.624 % low: -3.173 % |
|