NasdaqGS:MGLN

Stock Analysis Report

Executive Summary

Magellan Health, Inc. provides healthcare management services in the United States.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Magellan Health's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGLN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

MGLN

-0.7%

US Healthcare

2.4%

US Market


1 Year Return

-25.8%

MGLN

-1.9%

US Healthcare

-10.0%

US Market

Return vs Industry: MGLN underperformed the US Healthcare industry which returned -1.9% over the past year.

Return vs Market: MGLN underperformed the US Market which returned -10% over the past year.


Shareholder returns

MGLNIndustryMarket
7 Day10.1%-0.7%2.4%
30 Day-12.6%-12.3%-11.0%
90 Day-34.6%-17.2%-19.4%
1 Year-25.8%-25.8%-0.6%-1.9%-8.1%-10.0%
3 Year-28.2%-28.2%21.0%15.6%17.3%9.6%
5 Year-30.6%-30.6%25.4%16.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is Magellan Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magellan Health undervalued compared to its fair value and its price relative to the market?

21.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGLN ($48.84) is trading above our estimate of fair value ($18.53)

Significantly Below Fair Value: MGLN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGLN is poor value based on its PE Ratio (21.2x) compared to the Healthcare industry average (21.1x).

PE vs Market: MGLN is poor value based on its PE Ratio (21.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MGLN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MGLN is good value based on its PB Ratio (0.9x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is Magellan Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGLN's forecast earnings growth (25% per year) is above the savings rate (1.7%).

Earnings vs Market: MGLN's earnings (25% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGLN's revenue (3.5% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: MGLN's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MGLN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Magellan Health performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGLN has high quality earnings.

Growing Profit Margin: MGLN's current net profit margins (0.8%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: MGLN's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: MGLN's earnings growth over the past year (131.2%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: MGLN earnings growth over the past year (131.2%) exceeded the Healthcare industry 14%.


Return on Equity

High ROE: MGLN's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Magellan Health's financial position?


Financial Position Analysis

Short Term Liabilities: MGLN's short term assets ($1.7B) exceed its short term liabilities ($910.1M).

Long Term Liabilities: MGLN's short term assets ($1.7B) exceed its long term liabilities ($784.2M).


Debt to Equity History and Analysis

Debt Level: MGLN's debt to equity ratio (47.5%) is considered high.

Reducing Debt: MGLN's debt to equity ratio has increased from 21.5% to 47.5% over the past 5 years.

Debt Coverage: MGLN's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: MGLN's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGLN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MGLN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MGLN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGLN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGLN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Ken Fasola (59yo)

0.42

Tenure

Mr. Kenneth John Fasola, also known as Ken, serves as Chief Executive Officer of Magellan Health, Inc. since November 2019. He is responsible for Magellan’s strategic direction and overall growth, as well  ...


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Rubin
Chief Financial Officer11.58yrsUS$2.49m0.14% $1.7m
Caskie Lewis-Clapper
Chief Human Resources Officer16.25yrsUS$1.37m0.065% $783.0k
Mostafa Kamal
Chief Executive Officer of Magellan Rx Management4.75yrsUS$2.10m0.023% $274.3k
Kenneth Fasola
Chief Executive Officer0.42yrno datano data
James Murray
President & COO0.33yrno datano data
Renie Silver
SVP - Corporate Financeno datano datano data
Joe Bogdan
Senior Vice President of Corporate Financeno datano datano data
Srini? Koushik
Chief Technology Officer4.25yrsno datano data
David Haddock
General Counsel & Secretary0.17yrno datano data
John Littel
Chief External Affairs Officerno datano datano data

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: MGLN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Shulman
Chairman0.75yrUS$68.69k0.099% $1.2m
William McBride
Lead Director4.75yrsUS$270.05k0.16% $1.9m
Guy Sansone
Independent Director1.08yrsno data0.021% $247.3k
Michael Diament
Independent Director16.25yrsUS$275.05k0.16% $1.9m
Perry Fine
Independent Director5.92yrsUS$243.80k0.042% $510.6k
Swati Abbott
Independent Director1.92yrsUS$226.71k0.016% $192.3k
Leslie Norwalk
Independent Director1.08yrsno data0.011% $136.1k
G. Mackenzie
Independent Director3.42yrsUS$256.30k0.031% $375.3k
Peter Feld
Independent Director1.08yrsno data0.011% $136.1k

1.9yrs

Average Tenure

55yo

Average Age

Experienced Board: MGLN's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Health, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Health, Inc.
  • Ticker: MGLN
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$1.206b
  • Shares outstanding: 24.70m
  • Website: https://www.magellanhealth.com

Number of Employees


Location

  • Magellan Health, Inc.
  • 4801 East Washington Street
  • Phoenix
  • Arizona
  • 85034
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGLNNasdaqGS (Nasdaq Global Select)YesOrdinary Common StockUSUSDJul 1992
MAH1DB (Deutsche Boerse AG)YesOrdinary Common StockDEEURJul 1992

Biography

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 based in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 04:14
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.