$HCA Healthcare (HCA.US)$ From 2019 to 2024, the revenue inc...

$HCA Healthcare (HCA.US)$ From 2019 to 2024, the revenue increased by 38%, EPS increased by 108%, that’s a revenue CGAR of 6.6% and EPS CGAR of 15.8%. The EBITDA margin is about the same at 18% in 2019 and 2024. The magic of this outsized EPS growth is share repurchase at a relatively low TTM P/E=13-14. The share price from this period precisely reflected that amazing EPS growth and the P/E didn’t expand. It’s a pretty good investment if the revenue CGAR of 6-7% can be achieved consistently (2-3% due to admission rate and 3-4% due to inflation and more precedure per admission). It can also be argued there is room for P/E expansion if the demand of equity return is lower.