HCA
HCA Healthcare, Inc.
Healthcare · Medical Care Facilities · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 63.4/100 reflects a balance of strong dividend and financial health scores alongside moderate growth and momentum scores, producing a mid-range overall result [dividend.dps_trend, dividend.payout_ratio, growth.revenue.yoy, momentum.revenue_quarterly].
- The near-maximum dividend score is anchored by four consecutive years of dividend-per-share growth and a very low 10.0% payout ratio, which are the standout positives in the model [dividend.dps_trend, dividend.payout_ratio].
- The absence of a macro theme assignment contributes zero points to the theme factor, capping the total score despite otherwise solid fundamentals [theme.none].
Why Not Higher
- Mid-single-digit revenue growth of 7.1% and a recent quarterly pullback in revenue, operating income, and net income tempered the growth and momentum scores below the highest tiers [growth.revenue.yoy, momentum.revenue_quarterly, momentum.operating_income_quarterly].
- The zero-point theme score, reflecting no current assignment to any of the 24 tracked macro themes, directly limits the maximum achievable composite score [theme.none].
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew 7.1% from FY2024 to FY2025, while net income rose 17.8% over the same period and diluted EPS expanded 28.8% from FY2024 to FY2025.
The model rewarded accelerating bottom-line leverage — net income and EPS growing at roughly two to four times the rate of revenue — while the mid-single-digit top-line growth rate tempered the overall score below the highest tier.
In FY2025, HCA reported a net margin of 9.0%, an operating margin of 13.0%, and a return on assets of 11.2%.
The model recognized solid operating and net margins alongside a double-digit return on assets, reflecting efficient conversion of revenue to profit; the score stops short of the highest tier, consistent with margins that are healthy but not exceptional relative to the model's full range.
In FY2025, HCA reported a debt-to-equity ratio of -7.35, an interest coverage ratio of 4.4, and total assets of $60,720,000,000.
The negative debt-to-equity ratio reflects a stockholders' deficit — a common structural feature of highly leveraged buyback-intensive companies — while an interest coverage ratio of 4.4 in FY2025 indicates the company generates sufficient operating income to service its debt obligations; the model appears to have balanced these offsetting signals in arriving at a mid-to-upper score.
Over the last four reported quarters, revenue ranged from $18,605,000,000 in 2025Q2 to a peak of $19,513,000,000 in 2025Q4 before easing to $19,109,000,000 in 2026Q1; operating income followed a similar pattern, peaking at $2,672,000,000 in 2025Q4 and pulling back to $2,287,000,000 in 2026Q1; net income likewise peaked at $1,878,000,000 in 2025Q4 and declined to $1,620,000,000 in 2026Q1.
The model observed a pattern of mid-period acceleration followed by a notable pullback in the most recent quarter across revenue, operating income, and net income, which likely produced a moderate rather than high momentum score.
HCA has grown its dividends per share consistently from $2.24 in FY2022 to $2.40 in FY2023, $2.64 in FY2024, and $2.88 in FY2025, while maintaining a conservative dividend payout ratio of 10.0% of net income in FY2025.
The model rewarded the unbroken multi-year dividend growth trajectory alongside a low payout ratio, which signals that the dividend is well-covered by earnings and has substantial room to continue growing — characteristics the model associates with a near-maximum dividend score.
HCA is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification reflecting the model's current coverage, not a commentary on the company's business quality or strategic positioning.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
HCA Healthcare delivered solid FY2025 results, with revenue growing 7.1% to $75.6 billion while net income surged 17.8% and diluted EPS expanded 28.8%, demonstrating meaningful bottom-line leverage [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy]. Profitability metrics were healthy, with a 9.0% net margin, 13.0% operating margin, and 11.2% return on assets in FY2025 [profitability.net_margin_pct, profitability.operating_margin_pct, profitability.roa_pct]. The company's financial structure reflects a stockholders' deficit driven by leverage and buybacks, though an interest coverage ratio of 4.4 indicates adequate debt-service capacity [financial_health.debt_to_equity, financial_health.interest_coverage]. HCA's dividend profile stands out, with dividends per share growing every year from $2.24 in FY2022 to $2.88 in FY2025 and a conservative 10.0% payout ratio leaving ample room for continued growth [dividend.dps_trend, dividend.payout_ratio].
Plain English
HCA is a large hospital company that is growing its profits faster than its revenues, pays a steadily rising dividend that eats up only a small slice of its earnings, and carries a lot of debt but still earns enough to cover its interest payments comfortably [growth.net_income.yoy, dividend.dps_trend, financial_health.interest_coverage].
Bull Case vs. Bear Case
Bull Case
- Earnings are growing much faster than revenue — net income rose 17.8% and diluted EPS jumped 28.8% in FY2025 even as revenue grew a more modest 7.1%, signaling strong operating leverage [growth.net_income.yoy, growth.eps_diluted.yoy, growth.revenue.yoy].
- The dividend has grown every single year from $2.24 in FY2022 to $2.88 in FY2025, and with a payout ratio of only 10.0% of net income, there is substantial room for continued dividend increases [dividend.dps_trend, dividend.payout_ratio].
- A 13.0% operating margin and 11.2% return on assets in FY2025 reflect efficient operations and solid conversion of revenue into profit across a large asset base of $60.7 billion [profitability.operating_margin_pct, profitability.roa_pct, financial_health.total_assets].
Bear Case
- HCA carries a deeply negative debt-to-equity ratio of -7.35, reflecting a stockholders' deficit from heavy leverage and buyback activity, which introduces structural financial risk [financial_health.debt_to_equity].
- The most recent quarter showed a notable pullback: revenue fell from a peak of $19,513,000,000 in 2025Q4 to $19,109,000,000 in 2026Q1, and net income dropped from $1,878,000,000 to $1,620,000,000, raising questions about near-term momentum [momentum.revenue_quarterly, momentum.net_income_quarterly].
- Top-line growth of 7.1% is solid but mid-single-digit, and the company is not currently assigned to any of the model's 24 tracked macro themes, meaning it does not benefit from a thematic tailwind in the scoring framework [growth.revenue.yoy, theme.none].
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in quarterly revenue and net income beyond the 2025Q4 peaks would signal that the 2026Q1 pullback was temporary and that momentum is resuming [momentum.revenue_quarterly, momentum.net_income_quarterly].
- An increase in the dividend payout ratio while maintaining strong earnings growth would reinforce HCA's commitment to shareholder returns and could attract additional income-focused investors [dividend.payout_ratio, dividend.dps_trend].
Bearish Triggers
- A decline in the interest coverage ratio below current levels of 4.4 would signal deteriorating ability to service the company's substantial debt load and could elevate financial risk [financial_health.interest_coverage, financial_health.debt_to_equity].
- If revenue growth decelerates further from the current 7.1% annual rate while margins compress, the bottom-line leverage that has driven EPS expansion could reverse [growth.revenue.yoy, growth.eps_diluted.yoy, profitability.net_margin_pct].
Risk Profile
Low RiskHCA's negative debt-to-equity ratio of -7.35 reflects a leveraged balance sheet with a stockholders' deficit, though an interest coverage ratio of 4.4 indicates the company currently generates sufficient operating income to meet its debt obligations [financial_health.debt_to_equity, financial_health.interest_coverage]. The recent quarterly softness — with revenue, operating income, and net income all pulling back in 2026Q1 from 2025Q4 peaks — adds a degree of near-term uncertainty to the otherwise stable financial profile [momentum.revenue_quarterly, momentum.operating_income_quarterly, momentum.net_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.