NYSE:ANTM

Stock Analysis Report

Executive Summary

Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

ANTM

5.8%

US Healthcare

0.4%

US Market


1 Year Return

-10.7%

ANTM

-5.7%

US Healthcare

6.9%

US Market

Return vs Industry: ANTM underperformed the US Healthcare industry which returned -5.7% over the past year.

Return vs Market: ANTM underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ANTMIndustryMarket
7 Day5.0%5.8%0.4%
30 Day-2.4%2.5%-1.1%
90 Day-17.5%-1.4%-0.5%
1 Year-9.6%-10.7%-4.2%-5.7%9.3%6.9%
3 Year110.0%101.9%34.3%29.0%45.8%36.4%
5 Year123.6%107.5%65.1%55.2%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ANTM ($249.4) is trading below our estimate of fair value ($758.19)

Significantly Undervalued: ANTM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ANTM is good value based on its PE Ratio (15.8x) compared to the Healthcare industry average (20.3x).

PE vs Market: ANTM is good value based on its PE Ratio (15.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ANTM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ANTM is good value based on its PB Ratio (2.1x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is Anthem forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANTM's forecast earnings growth (13.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ANTM's earnings (13.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ANTM's revenue (10% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ANTM's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ANTM's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Anthem performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANTM's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: ANTM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ANTM had negative earnings growth (-6.2%) over the past year, making it difficult to compare to the Healthcare industry average (5.3%).


Return on Equity

High ROE: ANTM's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: ANTM has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: ANTM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Anthem's financial position?


Financial Position Analysis

Short Term Liabilities: ANTM's short term assets ($37.8B) exceeds its short term liabilities ($23.1B)

Long Term Liabilities: ANTM's short term assets (37.8B) exceeds its long term liabilities (22.0B)


Debt to Equity History and Analysis

Debt Level: ANTM's debt to equity ratio (64.5%) is considered high

Reducing Debt: ANTM's debt to equity ratio has reduced from 68.7% to 64.5% over the past 5 years.

Debt Coverage: ANTM's debt is well covered by operating cash flow (20.8%).

Interest Coverage: ANTM's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

Inventory Level: ANTM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ANTM's debt is covered by short term assets (assets are 1.903570x debt).


Next Steps

Dividend

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

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ANTM's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ANTM's dividend (1.28%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: Whilst dividend payments have been stable, ANTM has been paying a dividend for less than 10 years.

Growing Dividend: ANTM's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.6%), ANTM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANTM's dividends in 3 years are forecast to be thoroughly covered by earnings (12% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Gail Boudreaux (58yo)

1.9yrs

Tenure

US$14,184,276

Compensation

Ms. Gail Koziara Boudreaux has been President, Chief Executive Officer and Director of Anthem, Inc. since November 11, 2017. Prior to joining the Company, she served as Chief Executive Officer of GKB Globa ...


CEO Compensation Analysis

Compensation vs. Market: Gail has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Gail's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.2yrs

Average Tenure

59yo

Average Age

Experienced Management: ANTM's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

63yo

Average Age

Experienced Board: ANTM's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: ANTM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$488,52030 Jul 19
Julie Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,656
Max PriceUS$295.00
SellUS$152,93730 Jul 19
Robert Dixon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares520
Max PriceUS$294.11
SellUS$149,87504 Feb 19
Julie Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$299.75
SellUS$143,62509 Nov 18
Julie Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$287.25

Ownership Breakdown


Management Team

  • Thomas Zielinski (68yo)

    Executive VP & General Counsel

    • Tenure: 5.3yrs
    • Compensation: US$3.98m
  • Gail Boudreaux (58yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$14.18m
  • Gloria McCarthy (66yo)

    Executive VP and Chief Administration & Transformation Officer

    • Tenure: 6.8yrs
    • Compensation: US$5.44m
  • Tom Miller (61yo)

    Senior VP & Chief Information Officer

    • Tenure: 5.4yrs
  • Pete Haytaian (49yo)

    Executive VP and President of Commercial & Specialty Business Division

    • Tenure: 5.3yrs
    • Compensation: US$5.94m
  • John Gallina (59yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$5.15m
  • Bonnie Jacobs

    Senior Vice President of Corporate Communications

    • Tenure: 4.5yrs
  • Ronald Penczek (54yo)

    Senior VP

    • Tenure: 3.8yrs
  • Scott Anglin

    SVP, Treasurer & Chief Investment Officer

    • Tenure: 1.5yrs
  • Chris Rigg

    Vice President

    • Tenure: 1.8yrs

Board Members

  • Ramiro Peru (63yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$355.68k
  • Liz Tallett (70yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$454.57k
  • Julie Hill (73yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$348.18k
  • Lew Hay (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$323.65k
  • Gail Boudreaux (58yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$14.18m
  • Robert Dixon (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$335.68k
  • Heath Gilbert

    Member of Advisory Board

    • Tenure: 6.2yrs
  • Douglas Kiefer

    Member of Advisory Board

    • Tenure: 6.2yrs
  • Karin Meng

    Member of Advisory Board

    • Tenure: 6.2yrs
  • Richard Hom

    Chairman of Advisory Board & National Optometric Director

    • Tenure: 6.2yrs

Company Information

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


Key Information

  • Name: Anthem, Inc.
  • Ticker: ANTM
  • Exchange: NYSE
  • Founded: 1944
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$63.801b
  • Shares outstanding: 255.82m
  • Website: https://www.antheminc.com

Number of Employees


Location

  • Anthem, Inc.
  • 220 Virginia Avenue
  • Indianapolis
  • Indiana
  • 46204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANTMNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2001
A58DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001
ANTM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2001
0HG8LSE (London Stock Exchange)YesCommon StockGBUSDOct 2001
ANTMWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2001

Biography

Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through three segments: Commercial & Specialty Business, Government Business, and Other. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.