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Magellan Health

Nasdaq:MGLN
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGLN
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Magellan Health, Inc. provides healthcare management services in the United States. The last earnings update was 47 days ago. More info.


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MGLN Share Price and Events
7 Day Returns
-3.3%
NasdaqGS:MGLN
-3.9%
US Healthcare
0.4%
US Market
1 Year Returns
-42.7%
NasdaqGS:MGLN
-0.6%
US Healthcare
6.8%
US Market
MGLN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magellan Health (MGLN) -3.3% -1.8% 2.8% -42.7% -10.2% 15.1%
US Healthcare -3.9% -4.5% -6% -0.6% 18.2% 68.1%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • MGLN underperformed the Healthcare industry which returned -0.6% over the past year.
  • MGLN underperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
MGLN
Industry
5yr Volatility vs Market

Value

 Is Magellan Health undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magellan Health to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magellan Health.

NasdaqGS:MGLN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MGLN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.721 (1 + (1- 21%) (49.7%))
1.003
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.003 * 5.96%)
8.71%

Discounted Cash Flow Calculation for NasdaqGS:MGLN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magellan Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MGLN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.71%)
2019 81.49 Est @ -8.51% 74.96
2020 77.30 Est @ -5.14% 65.41
2021 75.15 Est @ -2.78% 58.50
2022 74.30 Est @ -1.13% 53.20
2023 74.32 Est @ 0.03% 48.96
2024 74.95 Est @ 0.84% 45.41
2025 76.00 Est @ 1.41% 42.36
2026 77.37 Est @ 1.8% 39.67
2027 78.98 Est @ 2.08% 37.26
2028 80.78 Est @ 2.28% 35.05
Present value of next 10 years cash flows $500.79
NasdaqGS:MGLN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $80.78 × (1 + 2.73%) ÷ (8.71% – 2.73%)
$1,388.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,388.27 ÷ (1 + 8.71%)10
$602.38
NasdaqGS:MGLN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $500.79 + $602.38
$1,103.17
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,103.17 / 23.93
$46.11
NasdaqGS:MGLN Discount to Share Price
Calculation Result
Value per share (USD) From above. $46.11
Current discount Discount to share price of $63.31
= -1 x ($63.31 - $46.11) / $46.11
-37.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Magellan Health is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magellan Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magellan Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MGLN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.99
NasdaqGS:MGLN Share Price ** NasdaqGS (2019-04-16) in USD $63.31
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 23.08x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magellan Health.

NasdaqGS:MGLN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MGLN Share Price ÷ EPS (both in USD)

= 63.31 ÷ 0.99

63.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Health is overvalued based on earnings compared to the US Healthcare industry average.
  • Magellan Health is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Magellan Health's expected growth come at a high price?
Raw Data
NasdaqGS:MGLN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 63.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
40.2%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.59x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:MGLN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 63.75x ÷ 40.2%

1.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Health is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Magellan Health's assets?
Raw Data
NasdaqGS:MGLN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $53.70
NasdaqGS:MGLN Share Price * NasdaqGS (2019-04-16) in USD $63.31
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.39x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NasdaqGS:MGLN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MGLN Share Price ÷ Book Value per Share (both in USD)

= 63.31 ÷ 53.70

1.18x

* Primary Listing of Magellan Health.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Health is good value based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Magellan Health's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Magellan Health has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Magellan Health expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
40.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magellan Health expected to grow at an attractive rate?
  • Magellan Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Magellan Health's earnings growth is expected to exceed the United States of America market average.
  • Magellan Health's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MGLN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MGLN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 40.2%
NasdaqGS:MGLN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 1.9%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MGLN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MGLN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 7,865 242 104 1
2020-12-31 7,442 209 81 3
2019-12-31 7,216 180 58 3
NasdaqGS:MGLN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,314 165 24
2018-09-30 7,164 84 107
2018-06-30 6,730 180 112
2018-03-31 6,338 274 104
2017-12-31 5,839 162 110
2017-09-30 5,408 187 91
2017-06-30 5,280 190 84
2017-03-31 5,025 67 82
2016-12-31 4,837 67 78
2016-09-30 4,842 -28 70
2016-06-30 4,740 -74 37
2016-03-31 4,733 81 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magellan Health's earnings are expected to grow significantly at over 20% yearly.
  • Magellan Health's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MGLN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Magellan Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGLN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.38 4.38 4.38 1.00
2020-12-31 3.43 3.69 3.22 4.00
2019-12-31 2.41 2.63 2.15 4.00
NasdaqGS:MGLN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.99
2018-09-30 4.39
2018-06-30 4.66
2018-03-31 4.39
2017-12-31 4.72
2017-09-30 3.95
2017-06-30 3.66
2017-03-31 3.58
2016-12-31 3.36
2016-09-30 2.99
2016-06-30 1.53
2016-03-31 1.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Magellan Health will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Magellan Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magellan Health has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Magellan Health performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magellan Health's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magellan Health's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Magellan Health's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Magellan Health's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Magellan Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magellan Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGLN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,314.15 24.18
2018-09-30 7,163.92 106.66
2018-06-30 6,729.82 111.96
2018-03-31 6,338.04 103.91
2017-12-31 5,838.58 110.21
2017-09-30 5,407.55 90.87
2017-06-30 5,280.28 83.93
2017-03-31 5,025.49 82.39
2016-12-31 4,836.88 77.88
2016-09-30 4,842.24 69.99
2016-06-30 4,740.19 36.68
2016-03-31 4,733.45 37.36
2015-12-31 4,597.40 31.41
2015-09-30 4,311.12 25.69
2015-06-30 4,044.20 60.63
2015-03-31 3,774.61 60.97
2014-12-31 3,760.12 79.40
2014-09-30 3,785.87 76.33
2014-06-30 3,736.30 96.43
2014-03-31 3,691.03 122.92
2013-12-31 3,546.32 125.26
2013-09-30 3,368.38 143.77
2013-06-30 3,293.22 162.80
2013-03-31 3,255.95 158.30
2012-12-31 3,207.40 151.03
2012-09-30 3,098.59 143.76
2012-06-30 2,986.99 108.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magellan Health has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magellan Health used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Magellan Health's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magellan Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magellan Health has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Magellan Health's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magellan Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magellan Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magellan Health's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magellan Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magellan Health Company Filings, last reported 3 months ago.

NasdaqGS:MGLN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,285.30 752.88 130.08
2018-09-30 1,331.75 798.75 232.24
2018-06-30 1,318.77 825.05 244.38
2018-03-31 1,305.13 798.19 288.35
2017-12-31 1,276.49 853.74 261.19
2017-09-30 1,207.41 764.77 480.52
2017-06-30 1,147.66 629.94 273.27
2017-03-31 1,135.97 636.34 286.58
2016-12-31 1,104.49 618.38 292.43
2016-09-30 1,044.96 537.81 233.79
2016-06-30 1,089.27 476.69 236.29
2016-03-31 1,093.04 254.54 146.91
2015-12-31 1,072.12 257.31 160.22
2015-09-30 1,083.45 262.30 197.77
2015-06-30 1,162.67 265.22 270.60
2015-03-31 1,169.85 267.86 344.42
2014-12-31 1,139.52 269.84 346.86
2014-09-30 1,151.66 274.35 390.79
2014-06-30 1,179.82 24.86 194.71
2014-03-31 1,185.44 25.61 291.84
2013-12-31 1,167.04 26.73 261.40
2013-09-30 1,118.73 27.01 354.98
2013-06-30 1,053.43 27.51 281.93
2013-03-31 1,031.79 28.42 312.51
2012-12-31 1,017.33 0.00 302.26
2012-09-30 992.99 0.00 277.44
2012-06-30 904.71 0.00 239.53
  • Magellan Health's level of debt (58.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.3% vs 58.6% today).
  • Debt is well covered by operating cash flow (21.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Magellan Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magellan Health has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Magellan Health's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Magellan Health dividends. Estimated to be 0% next year.
If you bought $2,000 of Magellan Health shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Magellan Health's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Magellan Health's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MGLN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MGLN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Magellan Health has not reported any payouts.
  • Unable to verify if Magellan Health's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Magellan Health's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Magellan Health has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Magellan Health's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Magellan Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magellan Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magellan Health has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Magellan Health's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barry Smith
COMPENSATION $7,434,946
AGE 64
TENURE AS CEO 6.3 years
CEO Bio

Mr. Barry M. Smith has been the Chief Executive Officer of Magellan Health, Inc. since January 1, 2013 and also serves as Chairman. Mr. Smith is responsible for Magellan's strategic direction and overall growth, as well as the development and operational execution of the Magellan's business strategy. He has been the Chief Executive Officer of Magellan Healthcare at Magellan Health, Inc. since December 28, 2018. He is the Founder, Chairman and Chief Executive Officer at Bon Travay, S.A. Mr. Smith joined Health Evolution Partners as on January 19, 2012 and focused on the services sector. He has more than 30 years of experience in the health care industry including leading transformational change and driving growth. He helped the Health Evolution Partners portfolio companies achieve commercial success. He is a veteran health care Chief Executive Officer with experience founding and leading health care companies, including hospice and pharmacy benefits management. He founded and served as the Chairman, Chief Executive Officer and President at Vista Care Services. From June 1990 to January 1996, Mr. Smith served as the Chairman and the Chief Executive Officer at Value Rx Inc. He served as a Member of the Portfolio Services Group and Operating Partner of Growth Buyout Fund at Health Evolution Partners Growth Fund L.P. He also previously served as chief executive officer and chairman of B&J Associates, Inc. and B&J Smith Investments, LLC. He was a Co-Founder of Keystone National Group, LLC and served as its Chairman. He served as a Vice President of Operations at PCS Health Systems Inc. from May 1988 to June 1990. Mr. Smith co-founded VistaCare Inc. in July 1995 and served as the Chief Executive Officer and the President until May 2001. From July 1981 to May 1988, he served in a variety of management positions in the Medical Products, Renal Care and Prescription Drug divisions of Baxter Healthcare Corporation. He serves as the Chairman of RG Capital and iNation. He is a Director of Halcyon Healthcare and Optimal Radiology. He also serves on the Board of Directors of Inpatient Consultants Inc. Mr. Smith has been a Director of Magellan Health Services Inc. since December 17, 2004. He served as the Chairman of Optimal IMX, Inc. since May 2012. He served as the Chairman of VistaCare, LLC from January 1996 to August 12, 2003. He has been a Director at The Ensign Group, Inc. since 2014. He served as lead director of CenseoHealth, the chairman of Optimal Radiology and the lead director of Halcyon Health Services. He served as a Director of IPC The Hospitalist Company, Inc. from 1998 to June 2008. He also serves on the Boards of the Ambassador's Council of Freedom from Hunger and VistaCare Foundation. He serves as a Member of the board of the Institute of Mental Health Research. He served as Director of VistaCare, LLC. He is on the Marriott School of Business National Leadership Council at Brigham Young University and is chairman of the Founders program at the school's Rollins Center of Entrepreneurship and Technology. Mr. Smith earned a B.A. Degree in Finance from the University of Utah.

CEO Compensation
  • Barry's compensation has been consistent with company performance over the past year.
  • Barry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Magellan Health management team in years:

10.6
Average Tenure
53.5
Average Age
  • The average tenure for the Magellan Health management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Barry Smith

TITLE
Chairman
COMPENSATION
$7M
AGE
64
TENURE
6.3 yrs

Jon Rubin

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
54
TENURE
10.6 yrs

Dan Gregoire

TITLE
General Counsel & Secretary
COMPENSATION
$1M
AGE
62
TENURE
14.3 yrs

Mostafa Kamal

TITLE
Chief Executive Officer of Magellan Rx Management
COMPENSATION
$2M
AGE
37
TENURE
3.8 yrs

Renie Silver

TITLE
SVP - Corporate Finance

Srini? Koushik

TITLE
Chief Technology Officer
TENURE
3.3 yrs

Joe Bogdan

TITLE
Senior Vice President of Corporate Finance

John Littel

TITLE
Senior Vice President of External Affairs
AGE
53

Caskie Lewis-Clapper

TITLE
Chief Human Resources Officer
COMPENSATION
$1M
AGE
53
TENURE
15.3 yrs

Jay Youell

TITLE
Senior Vice President of Sales - Health Plan & Insurance Markets
TENURE
15.5 yrs
Board of Directors Tenure

Average tenure and age of the Magellan Health board of directors in years:

3.1
Average Tenure
56.5
Average Age
  • The tenure for the Magellan Health board of directors is about average.
Board of Directors

Barry Smith

TITLE
Chairman
COMPENSATION
$7M
AGE
64
TENURE
5.3 yrs

Michael Diament

TITLE
Director
COMPENSATION
$275K
AGE
49
TENURE
15.3 yrs

Eran Broshy

TITLE
Director
COMPENSATION
$268K
AGE
59
TENURE
10.2 yrs

G. MacKenzie

TITLE
Director
COMPENSATION
$245K
AGE
54
TENURE
2.4 yrs

William McBride

TITLE
Lead Director
COMPENSATION
$270K
AGE
73
TENURE
3.8 yrs

Steve Shulman

TITLE
Director
COMPENSATION
$69K
AGE
67
TENURE
0.1 yrs

Perry Fine

TITLE
Director
COMPENSATION
$240K
AGE
65
TENURE
4.9 yrs

John Agwunobi

TITLE
Director
COMPENSATION
$245K
AGE
53
TENURE
1.8 yrs

Matt Simas

TITLE
Director
AGE
53
TENURE
0.9 yrs

Swati Abbott

TITLE
Director
AGE
54
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Magellan Health insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Feb 19 Buy Starboard Value LP Company 02. Jan 19 02. Jan 19 85,229 $56.89 $4,848,678
22. Feb 19 Sell Starboard Value LP Company 02. Jan 19 02. Jan 19 -85,229 $56.89 $-4,848,678
22. Feb 19 Buy Guy Sansone Individual 30. Jan 19 30. Jan 19 2,275 $66.32 $150,870
13. Dec 18 Sell Starboard Value LP Company 04. Dec 18 06. Dec 18 -250,000 $54.99 $-13,748,200
13. Dec 18 Buy Starboard Value LP Company 07. Nov 18 12. Dec 18 2,369,100 $64.45 $152,678,545
X
Management checks
We assess Magellan Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magellan Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Selling Magellan Health, Inc. (NASDAQ:MGLN) Shares

We often see insiders buying up shares in companies that perform well over the long term. … Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Magellan Health, Inc.

Simply Wall St -

How Should Investors React To Magellan Health, Inc.'s (NASDAQ:MGLN) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Barry Smith's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$7.4m.

Simply Wall St -

Does Magellan Health, Inc.'s (NASDAQ:MGLN) P/E Ratio Signal A Buying Opportunity?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Magellan Health, Inc.'s (NASDAQ:MGLN) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What does Magellan Health, Inc.'s (NASDAQ:MGLN) Balance Sheet Tell Us About Its Future?

Investors are always looking for growth in small-cap stocks like Magellan Health, Inc. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Should We Be Cautious About Magellan Health, Inc.'s (NASDAQ:MGLN) ROE Of 8.0%?

Our data shows Magellan Health has a return on equity of 8.0% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.080 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Magellan Health, Inc.’s (NASDAQ:MGLN) Return On Capital Employed Might Be A Concern

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Investors Are Undervaluing Magellan Health Inc (NASDAQ:MGLN) By 28.99%

Does the December share price for Magellan Health Inc (NASDAQ:MGLN) reflect it's really worth? … by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Does Magellan Health Inc's (NASDAQ:MGLN) Past Performance Indicate A Stronger Future?

When Magellan Health Inc's (NASDAQ:MGLN) announced its latest earnings (30 September 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Magellan Health's average earnings over the past couple of years, and its industry performance. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.3%, indicating the rate at which MGLN is growing has accelerated

Simply Wall St -

What Investors Should Know About Magellan Health Inc's (NASDAQ:MGLN) Financial Strength

Magellan Health Inc (NASDAQ:MGLN) is a small-cap stock with a market capitalization of US$1.6b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

Is Magellan Health Inc's (NASDAQ:MGLN) CEO Paid Enough To Stay Motivated?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Barry Smith's Compensation Compare With Similar Sized Companies. … It would therefore appear that Magellan Health Inc pays Barry Smith more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Company Info

Description

Magellan Health, Inc. provides healthcare management services in the United States. The company operates in Healthcare and Pharmacy Management segments. The Healthcare segment offers carve-out management services for behavioral health; employee assistance plans (EAP); and other areas of specialty healthcare, including diagnostic imaging, musculoskeletal management, cardiac, and physical medicine. It also contracts with state Medicaid agencies, and the centers for Medicare and Medicaid services to manage care for beneficiaries under Medicaid and Medicare programs, such as healthcare and long-term support services through its network of medical and behavioral health professionals, clinics, hospitals, nursing facilities, home care agencies, and ancillary service providers. The Pharmacy Management segment comprises products and solutions that provide clinical and financial management of pharmaceuticals paid under medical and pharmacy benefit programs. It offers pharmacy benefit management services, such as pharmaceutical dispensing services; pharmacy benefit administration for state Medicaid and other government sponsored programs; clinical and formulary management programs; medical pharmacy management programs; and programs for the integrated management of specialty drugs that treat complex conditions. The company provides services to health plans and other managed care organizations, employers, labor unions, various military and governmental agencies, and third party administrators. Magellan Health, Inc. was founded in 1969 and is headquartered in Scottsdale, Arizona.

Details
Name: Magellan Health, Inc.
MGLN
Exchange: NasdaqGS
Founded: 1969
$1,514,713,402
23,925,342
Website: http://www.magellanhealth.com
Address: Magellan Health, Inc.
4800 North Scottsdale Road,
Suite 4400,
Scottsdale,
Arizona, 85251,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MGLN Ordinary Common Stock Nasdaq Global Select US USD 22. Jul 1992
DB MAH1 Ordinary Common Stock Deutsche Boerse AG DE EUR 22. Jul 1992
Number of employees
Current staff
Staff numbers
10,500
Magellan Health employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:57
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.