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Molina Healthcare (MOH) Presents At 38th Annual J.P. Morgan Healthcare Conference - Slideshow

Capital Position - Molina Healthcare had approximately $800 million in excess cash at the parent company level[8], representing roughly $13 per share[8] - The company targets a regulatory capital level of 10% of premium or 300% RBC[8] - Molina's debt to capital ratio at the parent level is 40%, with a debt to EBITDA ratio of 13x[8] - The company's ROE is 35%, and the targeted ROE at target capital is 65%[8] Capital Deployment - Molina Healthcare had approximately $17 billion in total deployable capital, including $800 million in excess cash and $900 million in undrawn debt capacity as of 3Q19[11] - The company's deployable capital could support $17 billion in additional premium capacity or $35 billion in additional premium capacity via M&A[13] - Molina targets a 65% ROE at targeted capital when reinvesting in organic growth[15] Financial Outlook - Molina Healthcare reiterated its full-year 2019 guidance as of October 29, 2019, with total revenue of approximately $161 billion[26], net income between $725 million and $740 million[26], and EPS between $1130 and $1155[26] - The company anticipates an after-tax margin of 43% to 44%[26] and a medical care ratio (MCR) of approximately 86%[26] - Molina's long-term outlook includes compound annual growth rates of 10%-12% for premium revenue, 38%-42% for after-tax margin, 9%-11% for net income, and 12%-15% for EPS[29]