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Aetna

NYSE:AET
Snowflake Description

Solid track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AET
NYSE
$69B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Aetna Inc. operates as a health care benefits company in the United States. The last earnings update was 29 days ago. More info.


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AET Share Price and Events
7 Day Returns
3.8%
NYSE:AET
2.4%
US Healthcare
1.7%
US Market
1 Year Returns
18.1%
NYSE:AET
22.5%
US Healthcare
5.7%
US Market
AET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aetna (AET) 3.8% 8.6% 6.2% 18.1% 98.3% 219.8%
US Healthcare 2.4% 4.6% 0.6% 22.5% 74% 168.1%
US Market 1.7% 1.6% -7.9% 5.7% 47.9% 89.3%
1 Year Return vs Industry and Market
  • AET underperformed the Healthcare industry which returned 22.5% over the past year.
  • AET outperformed the Market in United States of America which returned 5.7% over the past year.
Price Volatility
AET
Industry
5yr Volatility vs Market

AET Value

 Is Aetna 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 Aetna 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 Aetna.

NYSE:AET Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

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 NYSE:AET
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.714 (1 + (1- 21%) (11.75%))
0.78
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NYSE:AET using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aetna is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AET DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 4,570.00 4,933.50 4,460.50 4,824.00 5,032.69
Source Analyst x4 Analyst x4 Analyst x2 Analyst x2 Est @ 4.33%
Present Value
Discounted (@ 8.59%)
4,208.49 4,183.84 3,483.49 3,469.35 3,333.12
Present value of next 5 years cash flows $18,678.29
NYSE:AET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $5,032.69 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$91,864.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $91,864.44 ÷ (1 + 8.59%)5
$60,841.27
NYSE:AET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $18,678.29 + $60,841.27
$79,519.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $79,519.56 / 327.40
$242.88
NYSE:AET Discount to Share Price
Calculation Result
Value per share (USD) From above. $242.88
Current discount Discount to share price of $212.00
= -1 x ($212.00 - $242.88) / $242.88
12.7%

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

Current Discount
Amount off the current price Aetna is available for.
Intrinsic value
13%
Share price is $212 vs Future cash flow value of $242.88
Current Discount Checks
For Aetna to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aetna's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Aetna's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Aetna's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aetna's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AET PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $11.19
NYSE:AET Share Price ** NYSE (2018-11-27) in USD $212
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.44x
United States of America Market PE Ratio Median Figure of 2,994 Publicly-Listed Companies 17.89x

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

** Primary Listing of Aetna.

NYSE:AET PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AET Share Price ÷ EPS (both in USD)

= 212 ÷ 11.19

18.95x

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

  • Aetna is good value based on earnings compared to the US Healthcare industry average.
  • Aetna is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Aetna's expected growth come at a high price?
Raw Data
NYSE:AET PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
3.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 41 Publicly-Listed Healthcare Companies 1.79x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

NYSE:AET PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.95x ÷ 3.6%

5.23x

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

  • Aetna is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Aetna's assets?
Raw Data
NYSE:AET PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $55.87
NYSE:AET Share Price * NYSE (2018-11-27) in USD $212
United States of America Healthcare Industry PB Ratio Median Figure of 89 Publicly-Listed Healthcare Companies 2.53x
United States of America Market PB Ratio Median Figure of 5,008 Publicly-Listed Companies 1.84x
NYSE:AET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AET Share Price ÷ Book Value per Share (both in USD)

= 212 ÷ 55.87

3.79x

* Primary Listing of Aetna.

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

  • Aetna is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Aetna'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. Aetna 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.

AET Future Performance

 How is Aetna expected to perform in the next 1 to 3 years based on estimates from 15 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
3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aetna expected to grow at an attractive rate?
  • Aetna's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Aetna's earnings growth is positive but not above the United States of America market average.
  • Aetna's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AET Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AET Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 3.6%
NYSE:AET Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 6.6%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NYSE:AET Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AET Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 80,609 6,644 4,461 2
2021-12-31 74,633 6,065 4,362 3
2020-12-31 69,902 5,896 4,161 9
2019-12-31 64,924 6,072 3,806 12
2018-12-31 61,577 5,498 3,942 8
NYSE:AET Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 61,233 997 3,665
2018-06-30 60,743 3,229 3,503
2018-03-31 60,705 1,978 3,494
2017-12-31 60,535 -464 1,904
2017-09-30 61,410 1,322 1,799
2017-06-30 62,197 2,201 1,565
2017-03-31 62,627 2,827 1,153
2016-12-31 63,155 3,719 2,271
2016-09-30 62,476 5,731 2,453
2016-06-30 61,648 4,347 2,409
2016-03-31 60,826 4,184 2,350
2015-12-31 60,227 3,866 2,390

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aetna's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
  • Aetna's revenue is expected to grow by 6.6% 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
NYSE:AET Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Aetna Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AET Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 15.08 15.08 15.08 1.00
2021-12-31 14.40 14.40 14.40 1.00
2020-12-31 13.57 13.57 13.57 1.00
2019-12-31 11.78 12.53 10.63 7.00
2018-12-31 12.03 12.11 11.87 5.00
NYSE:AET Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 11.19
2018-06-30 10.68
2018-03-31 10.62
2017-12-31 5.71
2017-09-30 5.30
2017-06-30 4.54
2017-03-31 3.30
2016-12-31 6.46
2016-09-30 6.99
2016-06-30 6.88
2016-03-31 6.72
2015-12-31 6.84

*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.
  • Aetna is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Aetna'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.
Aetna has a total score of 2/6, 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.

AET Past Performance

  How has Aetna 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 Aetna'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.
  • Aetna's year on year earnings growth rate has been positive over the past 5 years.
  • Aetna's 1-year earnings growth exceeds its 5-year average (103.7% vs 8%)
  • Aetna's earnings growth has exceeded the US Healthcare industry average in the past year (103.7% vs 28.2%).
Earnings and Revenue History
Aetna'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 Aetna Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AET Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 61,233.00 3,665.00 10,045.00
2018-06-30 60,743.00 3,503.00 11,040.00
2018-03-31 60,705.00 3,494.00 10,852.00
2017-12-31 60,535.00 1,904.00 10,764.00
2017-09-30 61,410.00 1,799.00 12,037.00
2017-06-30 62,197.00 1,565.00 10,889.00
2017-03-31 62,627.00 1,153.00 11,008.00
2016-12-31 63,155.00 2,271.00 11,164.00
2016-09-30 62,475.60 2,452.60 11,208.50
2016-06-30 61,647.60 2,408.70 11,309.30
2016-03-31 60,825.90 2,349.50 11,398.10
2015-12-31 60,227.00 2,390.00 11,371.00
2015-09-30 59,949.60 2,301.40 11,332.00
2015-06-30 59,724.40 2,335.80 11,244.60
2015-03-31 59,102.50 2,152.80 11,020.20
2014-12-31 58,003.00 2,041.00 10,735.00
2014-09-30 56,414.70 2,177.70 10,078.60
2014-06-30 54,722.50 2,101.80 9,652.50
2014-03-31 51,736.10 2,089.00 9,105.60
2013-12-31 47,287.40 1,913.60 8,312.60
2013-09-30 44,034.30 1,734.80 7,727.90
2013-06-30 39,916.00 1,715.40 7,104.20
2013-03-31 37,228.90 1,637.00 6,752.10
2012-12-31 36,599.80 1,657.90 6,703.20
2012-09-30 35,242.50 1,840.40 6,774.90
2012-06-30 34,800.50 1,831.60 6,824.60
2012-03-31 34,309.00 1,912.90 6,769.90
2011-12-31 33,782.20 1,985.70 6,667.40

*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.
  • Aetna has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aetna used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Aetna has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aetna'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.
Aetna has a total score of 5/6, 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.

AET Health

 How is Aetna'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 Aetna's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aetna is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aetna's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Aetna'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 2.4x 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 Aetna Company Filings, last reported 1 month ago.

NYSE:AET Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 18,563.00 8,157.00 9,415.00
2018-06-30 17,671.00 8,159.00 9,892.00
2018-03-31 16,665.00 9,159.00 10,269.00
2017-12-31 15,837.00 9,159.00 6,190.00
2017-09-30 15,818.00 10,159.00 8,642.00
2017-06-30 15,575.00 9,172.00 6,331.00
2017-03-31 14,338.00 9,423.00 6,805.00
2016-12-31 17,943.00 20,661.00 20,872.00
2016-09-30 18,344.50 20,662.20 21,880.00
2016-06-30 17,777.70 20,663.00 19,948.90
2016-03-31 16,878.70 7,780.90 6,755.70
2015-12-31 16,179.00 7,785.00 5,412.00
2015-09-30 15,932.50 7,838.20 4,505.90
2015-06-30 15,467.80 8,383.80 3,541.40
2015-03-31 15,118.90 9,007.10 4,162.30
2014-12-31 14,551.80 9,609.90 3,891.40
2014-09-30 14,982.40 8,783.70 4,038.20
2014-06-30 14,752.80 9,080.90 3,934.40
2014-03-31 14,361.00 9,115.60 4,200.80
2013-12-31 14,078.20 9,045.20 3,391.20
2013-09-30 13,669.50 8,816.50 3,982.50
2013-06-30 13,501.20 9,296.50 4,404.80
2013-03-31 10,726.80 6,797.70 5,045.50
2012-12-31 10,429.20 6,528.40 4,586.70
2012-09-30 10,896.80 4,685.60 3,182.40
2012-06-30 10,255.80 4,706.30 3,269.10
2012-03-31 10,299.00 4,128.30 3,334.90
2011-12-31 10,120.20 4,403.60 2,849.80
  • Aetna's level of debt (43.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (64.5% vs 43.9% today).
  • Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.8x coverage).
X
Financial health checks
We assess Aetna'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. Aetna has a total score of 3/6, 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.

AET Dividends

 What is Aetna'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
0.94%
Current annual income from Aetna dividends. Estimated to be 0.94% next year.
If you bought $2,000 of Aetna shares you are expected to receive $19 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?
  • Aetna's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Aetna's dividend is below the markets top 25% of dividend payers in United States of America (3.58%).
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
NYSE:AET 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 15 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1980 Stocks 2.5%
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.

NYSE:AET Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 2.03 4.00
2019-12-31 1.98 7.00
2018-12-31 2.00 6.00
NYSE:AET Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-09-28 2.000 0.985
2018-05-18 2.000 1.048
2018-02-23 2.000 1.147
2017-12-04 2.000 1.099
2017-09-29 2.000 1.191
2017-05-19 2.000 1.302
2017-02-17 2.000 1.512
2016-12-02 1.000 0.809
2016-09-30 1.000 0.861
2016-05-20 1.000 0.851
2016-02-19 1.000 0.899
2015-12-04 1.000 0.953
2015-09-25 1.000 0.924
2015-05-15 1.000 0.854
2015-02-27 1.000 0.938
2014-11-21 1.000 1.090
2014-09-19 0.900 1.113
2014-05-30 0.900 1.111
2014-02-28 0.900 1.227
2013-12-06 0.900 1.315
2013-09-27 0.800 1.238
2013-05-17 0.800 1.269
2013-02-19 0.800 1.504
2012-11-30 0.800 1.708
2012-09-28 0.700 1.643
2012-05-18 0.700 1.793
2012-02-24 0.700 1.525
2011-12-02 0.700 1.611
2011-09-23 0.600 1.554
2011-05-20 0.600 1.461
2011-02-04 0.600 1.562
2010-09-24 0.040 0.128
2010-02-26 0.040 0.135
2010-02-05 0.040 0.137
2009-09-25 0.040 0.136
2009-02-27 0.040 0.156
2009-02-12 0.040 0.140
2008-12-01 0.040 0.149

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Aetna's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.7x coverage).
X
Income/ dividend checks
We assess Aetna'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 Aetna afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aetna has a total score of 4/6, see the detailed checks below.


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

AET Management

 What is the CEO of Aetna'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
Mark Bertolini
COMPENSATION $18,750,816
AGE 61
TENURE AS CEO 8 years
CEO Bio

Mr. Mark Thomas Bertolini has been the Chief Executive Officer and Chairman at Aetna Inc. since November 29, 2010 and April 8, 2011 respectively. Mr. Bertolini serves as an Advisor of New Mountain Capital, LLC. He serves as Chief Executive Officer and President at Aetna Life Insurance Company, Inc. He serves as Chairman of Aetna Life Insurance Company, Inc. He served as the President of Aetna Inc. since July 2007 until December 31, 2014. He has been a Director at Aetna Inc. since November 29, 2010. He served as the Head of Business Operations at Aetna Inc. since May 3, 2007 and Senior Vice President of Specialty Products since February 2003, which includes businesses that focus on regional and local plan sponsors and health plans and served as its Executive Vice President for Regional Businesses since February 3, 2006. Mr. Bertolini was responsible for leading Aetna’s specialty business area, which includes pharmacy benefit management and mail order operations, Group Insurance, dental, behavioral health, Aetna Health Information Solutions and eCommerce/Self Service. He was responsible for Local Market Initiatives, product development and Strategic Systems and Processes. Mr. Bertolini joined Aetna Inc. in 2003 as Head of Specialty Products. He joined Aetna from Cigna HealthCare, where he served as Senior Vice President of the Regional Segment, responsible for middle-market growth and retention and pharmacy operations. He served as Senior Vice President of National Sales & Delivery Network and Senior Vice President of Operations & Technology at Cigna HealthCare. Before joining Cigna, Mr. Bertolini served as an Executive Vice President at NYLCare Health Plans and Chief Executive Officer at SelectCare, Inc. He began his career in 1985 as Director of Business Development for SelectCare, Inc. He has been an Independent Director of Verizon Communications Inc. since February 5, 2015 and Massachusetts Mutual Life Insurance Company since February 10, 2015. He serves as a Director of The Partnership for New York City, Inc. He is affiliated with several nonprofit entities, including Hole in the Wall Gang Camp, Inc., Fidelco Guide Dog Foundation Inc., and the National Gay & Lesbian Chamber of Commerce. Mr. Bertolini holds an M.B.A. in Finance from Cornell University and a Bachelor of Science in Business Administration from Wayne State University.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year.
  • Mark'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 Aetna management team in years:

3.8
Average Tenure
54.5
Average Age
  • The tenure for the Aetna management team is about average.
Management Team

Mark Bertolini

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
61
TENURE
8 yrs

Karen Lynch

TITLE
President
COMPENSATION
$8M
AGE
55
TENURE
3.8 yrs

Shawn Guertin

TITLE
Executive VP
COMPENSATION
$6M
AGE
54
TENURE
5.8 yrs

Rick Jelinek

TITLE
Executive VP and Head of Enterprise Strategy & Integration
COMPENSATION
$8M
AGE
52
TENURE
3 yrs

Meg McCarthy

TITLE
Executive Vice President of Operations & Technology
COMPENSATION
$4M
AGE
64
TENURE
8 yrs

Heather Dixon

TITLE
VP, Controller & Chief Accounting Officer
AGE
46
TENURE
1 yrs

Joseph Krocheski

TITLE
Vice President of Investor Relations
AGE
48
TENURE
2.8 yrs

Tom Jones

TITLE
Chief Ethics & Compliance Officer
AGE
54
TENURE
5.6 yrs

Thomas Sabatino

TITLE
Executive VP & General Counsel
COMPENSATION
$11M
AGE
59
TENURE
2.6 yrs

Tom Weidenkopf

TITLE
Chief Human Resources Officer & Executive VP
AGE
59
Board of Directors Tenure

Average tenure and age of the Aetna board of directors in years:

10.8
Average Tenure
71
Average Age
  • The average tenure for the Aetna board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mark Bertolini

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
61
TENURE
7.6 yrs

Molly Coye

TITLE
Independent Director
COMPENSATION
$351K
AGE
71
TENURE
13.1 yrs

Frank Clark

TITLE
Independent Director
COMPENSATION
$342K
AGE
72
TENURE
12.4 yrs

Roger Farah

TITLE
Independent Director
COMPENSATION
$360K
AGE
65
TENURE
11.4 yrs

Dick Harrington

TITLE
Independent Director
COMPENSATION
$321K
AGE
71
TENURE
10.2 yrs

Aida Levitan

TITLE
Chairman of Miami Advisory Council
TENURE
8.4 yrs

Fernando Aguirre

TITLE
Independent Director
COMPENSATION
$296K
AGE
61
TENURE
7.3 yrs

Edward Ludwig

TITLE
Lead Director
COMPENSATION
$393K
AGE
67
TENURE
6.8 yrs

Jeff Garten

TITLE
Independent Director
COMPENSATION
$336K
AGE
71
TENURE
18.8 yrs

Ellen Hancock

TITLE
Independent Director
COMPENSATION
$359K
AGE
75
TENURE
23.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Aetna'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. Aetna 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.

AET News

External News
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Simply Wall St News

What Investors Should Know About Aetna Inc's (NYSE:AET) Financial Strength

Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. … the health of the financials determines whether the company continues to succeed. … Today we will look at Aetna’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth.

Simply Wall St -

What Do You Get For Owning Aetna Inc (NYSE:AET)?

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Aetna’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

What Do Analysts Think About Aetna Inc's (NYSE:AET) Future?

Looking at Aetna Inc's (NYSE:AET) earnings update in March 2018,. … as a 5.49% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 3.76%

Simply Wall St -

Should You Be Happy With Aetna Inc's (NYSE:AET) Performance Lately?

Examining Aetna Inc's (NYSE:AET) past track record of performance is a useful exercise for investors. … Below, I will assess AET's latest performance announced on 31 March 2018 and weight these figures against its longer term trend and industry movements. … Commentary On AET's Past Performance

Simply Wall St -

How Do Analysts See Aetna Inc's (NYSE:AET) Margin Performing In The Future?

Aetna Inc's (NYSE:AET) … growth of 5.19% annualised … but it's critical to take a step back

Simply Wall St -

Is It Time To Sell Aetna Inc (NYSE:AET) Based Off Its PE Ratio?

Yes, this cheaper multiple can initially be attractive, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

Should You Expect Aetna Inc (NYSE:AET) To Continue Delivering An ROE Of 21.02%?

and want to better understand how you can grow your money by investing in Aetna Inc (NYSE:AET). … Aetna Inc (NYSE:AET) outperformed the managed healthcare industry on the basis of its ROE – producing a higher 21.02% relative to the peer average of 13.77% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

An Intrinsic Calculation For Aetna Inc (NYSE:AET) Shows It's 37.46% Undervalued

How far off is Aetna Inc (NYSE:AET) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Be Tempted To Buy Aetna Inc (NYSE:AET) Because Of Its PE Ratio?

and want to begin learning the link between Aetna Inc (NYSE:AET)’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will explain what the P/E ratio is as well as what you should look out for when using it

Simply Wall St -

Can Aetna Inc's (NYSE:AET) ROE Continue To Surpass The Industry Average?

Check out our latest analysis for Aetna Breaking down Return on Equity Return on Equity (ROE) weighs Aetna’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Aetna’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:AET Last Perf May 22nd 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

AET Company Info

Map
Description

Aetna Inc. operates as a health care benefits company in the United States. It operates through three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment offers medical, pharmacy benefit management service, dental, behavioral health, and vision plans on an insured and employer-funded basis. It also provides point-of-service, preferred provider organization, health maintenance organization, and indemnity benefit plans, as well as health savings accounts and consumer-directed health plans. In addition, this segment offers Medicare and Medicaid products and services, as well as other medical products, such as medical management and data analytics services, medical stop loss insurance, workers’ compensation administrative services, and products that provide access to its provider networks in select geographies. The Group Insurance segment offers life insurance products, including group term life insurance, voluntary spouse and dependent term life insurance, group universal life insurance, and accidental death and dismemberment insurance; disability insurance products; and long-term care insurance products, which provide the benefits to cover the cost of care in private home settings, adult day care, assisted living, or nursing facilities. The Large Case Pensions segment manages various retirement products comprising pension and annuity products primarily for tax-qualified pension plans. The company provides its products and services to employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. Aetna Inc. was founded in 1853 and is based in Hartford, Connecticut.

Details
Name: Aetna Inc.
AET
Exchange: NYSE
Founded: 1853
$69,408,800,000
327,400,000
Website: http://www.aetna.com
Address: Aetna Inc.
151 Farmington Avenue,
Hartford,
Connecticut, 06156,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AET Common Stock New York Stock Exchange US USD 11. Dec 2000
DB HE8 Common Stock Deutsche Boerse AG DE EUR 11. Dec 2000
LSE 0HAO Common Stock London Stock Exchange GB USD 11. Dec 2000
BOVESPA AETB34 BDR EACH REPR 1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 03. Oct 2016
Number of employees
Current staff
Staff numbers
47,950
Aetna employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/28 21:01
End of day share price update: 2018/11/27 00:00
Last estimates confirmation: 2018/11/14
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.