HCA (HCA) Has Solid IPO Despite Weak Market

Despite an overall down day in the market, HCA's (NYSE: HCA) initial public offering went off without a hitch. Shares opened higher at $31.20 and have basically held those levels since. The hospital operator priced 126,200,000 shares of common stock at $30, which was as at the high-end of expected range of $27-$30.

Based on the current price, HCA is now sporting a market cap of roughly $16 billion.

HCA has no plans to pay dividends on its common stock for the foreseeable future, so the stock priced will be based solely on the earnings power of the company.

Last year, HCA generated revenues of $30.683 billion, net income attributable to HCA Holdings, Inc. of $1.207 billion, Adjusted EBITDA of $5.868 billion. The company say annual compounded growth rates of 4.5%, 11.4% and 8.5%, respectively. Cash flows from operating activities was $3.085 billion.

HCA earned $2.76 per diluted share last year, based on a diluted share count of 437.3 million. With the IPO the share could has swelled to 515,205,100 shares.

If the company can maintain grow rate of 11% for net income, earnings per share this year could be around $2.60 per share. This could put a forward P/E multiple on the stock of 12x.

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