Research

HCA – Market expectations are for Uniform ROA compression, but management is confident about their strategy and momentum

  • HCA Healthcare, Inc. (HCA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.8x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their approach to building networks and their near-term momentum
  • Specifically, management is confident about their approach to building out capable networks, and they are confident in their ability to ramp in the fourth quarter. Furthermore, they are confident that the surprise billing legislation is not a near-term headwind.