NasdaqGS:MGLN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

MGLN

-0.8%

US Healthcare

-1.3%

US Market


1 Year Return

20.8%

MGLN

18.1%

US Healthcare

18.5%

US Market

Return vs Industry: MGLN exceeded the US Healthcare industry which returned 18.1% over the past year.

Return vs Market: MGLN exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

MGLNIndustryMarket
7 Day-2.5%-0.8%-1.3%
30 Day2.5%5.7%5.3%
90 Day0.7%2.8%7.5%
1 Year20.8%20.8%19.8%18.1%21.3%18.5%
3 Year-9.1%-9.1%31.6%25.9%42.4%32.9%
5 Year41.2%41.2%59.5%47.7%84.2%63.5%

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?

18.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MGLN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MGLN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MGLN is good value based on its PE Ratio (18.3x) compared to the US Healthcare industry average (23.3x).

PE vs Market: MGLN is good value based on its PE Ratio (18.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: MGLN is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MGLN is good value based on its PB Ratio (1.3x) compared to the US Healthcare industry average (3x).


Next Steps

Future Growth

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

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGLN's forecast earnings growth (16.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MGLN's earnings (16.1% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: MGLN's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGLN's revenue is expected to decline over the next 3 years (-6.7% per year).

High Growth Revenue: MGLN's revenue is forecast to decline over the next 3 years (-6.7% 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?

0.08%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGLN has high quality earnings.

Growing Profit Margin: MGLN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGLN's earnings have grown by 0.08% per year over the past 5 years.

Accelerating Growth: MGLN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGLN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (28%).


Return on Equity

High ROE: MGLN's Return on Equity (6.7%) 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 ($2.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: MGLN's short term assets ($2.3B) exceed its long term liabilities ($710.0M).


Debt to Equity History and Analysis

Debt Level: MGLN's debt to equity ratio (45.9%) is considered high.

Reducing Debt: MGLN's debt to equity ratio has increased from 20.7% to 45.9% over the past 5 years.

Debt Coverage: MGLN's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: MGLN's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Magellan Health 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 recent payouts.

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

0.9yrs

Average management tenure


CEO

Ken Fasola (60 yo)

0.92

Tenure

US$4,880,754

Compensation

Mr. Kenneth John Fasola, also known as Ken, serves as Chief Executive Officer of Magellan Health, Inc. since November 2019 and has been its Director since November 14, 2019. He is responsible for Magellan’ ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Fasola
CEO & Director0.92yrUS$4.88mno data
Caskie Lewis-Clapper
Chief Human Resources Officer16.75yrsUS$1.68m0.096%
$ 1.8m
Mostafa Kamal
Chief Executive Officer of Magellan Rx Management5.25yrsUS$2.91m0.028%
$ 546.9k
James Murray
President & COO0.83yrno data0.018%
$ 343.9k
David Bourdon
Chief Financial Officer0.083yrno datano data
Renie Silver
SVP - Corporate Financeno datano datano data
Darren Lehrich
Chief Investor Relations Officer0.25yrno datano data
David Haddock
General Counsel & Secretary0.67yrno datano data
John Littel
Chief External Affairs Officerno datano datano data
Jay Youell
Senior Vice President of Sales - Health Plan & Insurance Markets17yrsno datano data
Karen Amstutz
Chief Medical Officer6.08yrsno datano data
Timothy Lacy
Chief Growth Officer0.50yrno datano data

0.9yrs

Average Tenure

53yo

Average Age

Experienced Management: MGLN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kenneth Fasola
CEO & Director0.92yrUS$4.88mno data
Steven Shulman
Independent Chairman1.25yrsUS$1.72m0.11%
$ 2.0m
Guy Sansone
Independent Director1.58yrsUS$259.44k0.028%
$ 548.9k
Mural Josephson
Independent Director0.33yrno data0.0084%
$ 162.1k
Swati Abbott
Independent Director2.42yrsUS$250.05k0.024%
$ 462.8k
Leslie Norwalk
Independent Director1.58yrsUS$255.63k0.019%
$ 375.2k
G. Mackenzie
Independent Director3.92yrsUS$271.30k0.039%
$ 749.2k
Peter Feld
Independent Director1.58yrsUS$282.27k0.019%
$ 375.2k
Christopher Chen
Independent Director0.33yrno data0.0084%
$ 162.1k

1.6yrs

Average Tenure

56yo

Average Age

Experienced Board: MGLN's board of directors are not considered experienced ( 1.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


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$1.934b
  • Shares outstanding: 25.31m
  • 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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:45
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.