Orin
HCANYSE·Medical - Care Facilities

HCA Healthcare, Inc. HCA

Market cap $93.2BP/E 14.1× trailingGross margin 28.4%Reports Fri 23 Oct, before the open
$430.58
+7.10 (+1.68%)live 11:25 ET
52-wk $353.99 – $556.52
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Orin's take
0.68conviction · moderate
Refreshed 1 Sep · take v7. A new filing or a print queues the next refresh.

HCA Healthcare is a buy: the company delivered accelerating Q2 2026 revenue growth of 8.7% YoY (up from 4.3% in Q1 2026), FY2025 diluted EPS of $28.38 (up 29% YoY), and $7.7B in free cash flow, while expanding operating margins to 15.8% from 14.9% in FY2024. The stock trades at a 44% PE discount and 44% EV/EBITDA discount to the healthcare peer median, yet smart money has inflected positive (0.0354 as of Q2 2026 from -0.1934 a year prior) with BlackRock disclosing a 6.01% position.

Negative equity of -$6.0B and $50.2B in total debt are longstanding features offset by $12.6B in operating cash flow, and the stock's position below its 200-day MA of $453.33 reflects already-discounted concerns rather than fresh deterioration.

What could go wrong

  • Leverage and negative equity. Total debt of $50.2B against negative stockholders' equity of -$6.0B as of FY2025 elevates sensitivity to rate changes and constrains financial flexibility.
  • Persistent insider selling. Over the trailing 24 months, insiders net sold approximately 37M shares worth $60.9M, with no meaningful insider buying to offset the trend.
  • Technical overhang. Stock at $414.45 trades below its 200-day MA of $453.33 as of 2026-08-31, with a negative MACD histogram, indicating ongoing bearish momentum.
  • Payer and cost pressure. Recent Zacks commentary highlights ongoing payer pressures that could compress margins despite the resiliency program's cost-control efforts.

What would change my mind

Q3 2026 earnings. Revenue growth sustains above 8% YoY with operating margin holding above 15%bullish
Balance sheet deterioration. Total debt increases beyond $52B or operating cash flow coverage weakens materiallybearish
Institutional accumulation. Next 13F filings show continued institutional buying and smart money score exceeds 0.10bullish
Operating margin compression. Operating margin falls below 14.9% (FY2024 level) on rising labor or supply costsbearish

Where this comes from: Quarterly results, Q2 and Q1 2026 · Fundamentals and derived_metrics FY2025 · Derived_metrics FY2025 and FY2024 · Peer_relative. Orin's read on HCA; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$4.0B0.1% of fund
State Street$2.9B0.1% of fund
Wellington Management Group Llp$1.8B0.3% of fund
Geode Capital Management$1.4B0.1% of fund
Vanguard Portfolio Management$1.1B0.0% of fund
Morgan Stanley$1.0B0.1% of fund

102 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 113 Form 4 filings, net −$60.9M. Of the 50 on hand, 0 were open-market purchases and 4 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Healthcare
MetricNowOwn medianSector
P/E14.1×13.5×26.4×
EV/EBITDA8.8×8.7×—
P/S1.18×1.16×—

Its P/E sits 80th percentile of its own last 5 years (+0.43σ from its own mean).

What the price assumes

0.6%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $7.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

46 firms · 2026-09-24
Consensus target

$458

$369 – $579 · +6% against today's price

How they rate it
  • 29 buy or overweight
  • 15 hold
  • 2 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 23.2× of 7 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
HCAHCA Healthcare, Inc.$92B14.1×8.8×28.4%8.8%-113%
BMYBristol-Myers Squibb Company$126B13.5×9.6×70.2%18.9%47%
CVSCVS Health Corporation$109B22.2×12.9×14.2%1.2%6%
MCKMcKesson Corporation$102B23.2×15.2×3.6%1.1%-194%
MDTMedtronic plc$113B21.6×14.8×66.7%13.9%11%
PFEPfizer Inc.$162B37.6×17.8×71.3%6.8%5%
SYKStryker Corporation$103B27.7×18.4×65.2%14.4%16%
VRTXVertex Pharmaceuticals Incorporated$133B30.2×23.6×86.0%34.9%23%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 39.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 16.5×FY25 16.3×

What its sector has traded at

Healthcare
FY14 6.5×FY26 28.5×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$362$374.65 · −3%2026-06-10
Levered DCF$348$374.65 · −7%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $430.58
52-week range$354 – $557
Analyst targets$369 – $579
Standard DCF$362 as of 2026-06-10, when it was $374.65
Levered DCF$348 as of 2026-06-10, when it was $374.65
At own 5y-median P/E (13×)$404
At 5y P/E range (12–16×)$358 – $476
At sector P/E (26×)$791

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.