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

-1.8%

NYSE:ANTM

0.4%

US Healthcare

2.9%

US Market


1 Year Return

1.9%

NYSE:ANTM

-5.6%

US Healthcare

0.2%

US Market

ANTM outperformed the Healthcare industry which returned -6.1% over the past year.

ANTM outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ANTMIndustryMarket
7 Day-1.8%0.4%2.9%
30 Day-11.2%-1.7%-2.3%
90 Day-3.5%2.8%3.1%
1 Year3.0%1.9%-4.2%-5.6%2.4%0.2%
3 Year118.8%109.9%28.6%23.3%41.7%32.4%
5 Year149.4%131.4%67.8%57.9%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Anthem's share price is below the future cash flow value, and at a moderate discount (> 20%).

Anthem's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Anthem is good value based on earnings compared to the US Healthcare industry average.

Anthem is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Anthem is poor value based on expected growth next year.


Price Based on Value of Assets

Anthem is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Anthem expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Anthem's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

Anthem's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

Anthem's revenue growth is expected to exceed the United States of America market average.

Anthem's earnings growth is positive but not above the United States of America market average.

Anthem's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Anthem is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Anthem's year on year earnings growth rate has been positive over the past 5 years.

Anthem's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Anthem's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Anthem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Anthem used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Anthem's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Anthem's financial position?


Financial Position Analysis

Anthem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Anthem's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Anthem's level of debt (64.5%) 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 (68.7% vs 64.5% today).

Debt is well covered by operating cash flow (20.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

1.24%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Anthem before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Anthem's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Anthem's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Whilst dividend payments have been stable, Anthem has been paying a dividend for less than 10 years.

Dividend payments have increased, but Anthem only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.4x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Gail Boudreaux (58yo)

1.8yrs

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

Gail's remuneration is about average for companies of similar size in United States of America.

Gail's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

59yo

Average Age

The tenure for the Anthem management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

63yo

Average Age

The tenure for the Anthem board of directors is about average.


Insider Trading

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

Ownership Breakdown


Management Team

  • Thomas Zielinski (68yo)

    Executive VP & General Counsel

    • Tenure: 5.2yrs
    • Compensation: US$3.98m
  • Gail Boudreaux (58yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$14.18m
  • Gloria McCarthy (66yo)

    Executive VP and Chief Administration & Transformation Officer

    • Tenure: 6.6yrs
    • Compensation: US$5.44m
  • Tom Miller (61yo)

    Senior VP & Chief Information Officer

    • Tenure: 5.3yrs
  • Pete Haytaian (49yo)

    Executive VP and President of Commercial & Specialty Business Division

    • Tenure: 5.2yrs
    • Compensation: US$5.94m
  • John Gallina (59yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$5.15m
  • Bonnie Jacobs

    Senior Vice President of Corporate Communications

    • Tenure: 4.3yrs
  • Ronald Penczek (54yo)

    Senior VP

    • Tenure: 3.7yrs
  • Scott Anglin

    SVP, Treasurer & Chief Investment Officer

    • Tenure: 1.3yrs
  • Chris Rigg

    Vice President

    • Tenure: 1.6yrs

Board Members

  • Ramiro Peru (63yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$355.68k
  • Liz Tallett (70yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$454.57k
  • Julie Hill (73yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$348.18k
  • Lew Hay (63yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$323.65k
  • Gail Boudreaux (58yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$14.18m
  • Robert Dixon (63yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$335.68k
  • Heath Gilbert

    Member of Advisory Board

    • Tenure: 6.0yrs
  • Douglas Kiefer

    Member of Advisory Board

    • Tenure: 6.0yrs
  • Karin Meng

    Member of Advisory Board

    • Tenure: 6.0yrs
  • Richard Hom

    Chairman of Advisory Board & National Optometric Director

    • Tenure: 6.0yrs

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$68.528b
  • 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
ANTMETLX (Eurotlx)YesCommon StockITEUROct 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 Analysis2019/08/21 23:52
End of Day Share Price2019/08/21 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.