NYSE:ANTM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


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

Stable Share Price: ANTM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.2%

ANTM

-7.7%

US Healthcare

-5.3%

US Market


1 Year Return

0.8%

ANTM

10.6%

US Healthcare

10.4%

US Market

Return vs Industry: ANTM underperformed the US Healthcare industry which returned 10.4% over the past year.

Return vs Market: ANTM underperformed the US Market which returned 12% over the past year.


Shareholder returns

ANTMIndustryMarket
7 Day-12.2%-7.7%-5.3%
30 Day1.0%-0.8%-2.1%
90 Day-0.4%-1.2%1.7%
1 Year2.1%0.8%12.1%10.6%12.9%10.4%
3 Year33.6%28.8%26.1%20.8%34.3%25.4%
5 Year118.8%103.6%53.4%42.2%73.7%54.3%

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

Below Fair Value: ANTM ($272.8) is trading below our estimate of fair value ($658.62)

Significantly Below Fair Value: 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 (13.9x) compared to the US Healthcare industry average (23.1x).

PE vs Market: ANTM is good value based on its PE Ratio (13.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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 (2x) compared to the US Healthcare industry average (3x).


Next Steps

Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANTM's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ANTM's earnings (11.3% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: ANTM's revenue (6.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ANTM's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANTM's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Anthem performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANTM has high quality earnings.

Growing Profit Margin: ANTM's current net profit margins (4.2%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: ANTM's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: ANTM's earnings growth over the past year (15.1%) is below its 5-year average (16.8% per year).

Earnings vs Industry: ANTM earnings growth over the past year (15.1%) underperformed the Healthcare industry 31.5%.


Return on Equity

High ROE: ANTM's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Anthem's financial position?


Financial Position Analysis

Short Term Liabilities: ANTM's short term assets ($45.5B) exceed its short term liabilities ($28.6B).

Long Term Liabilities: ANTM's short term assets ($45.5B) exceed its long term liabilities ($24.1B).


Debt to Equity History and Analysis

Debt Level: ANTM's debt to equity ratio (64.4%) is considered high.

Reducing Debt: ANTM's debt to equity ratio has reduced from 76.5% to 64.4% over the past 5 years.

Debt Coverage: ANTM's debt is well covered by operating cash flow (37.5%).

Interest Coverage: ANTM's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANTM's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: ANTM's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: ANTM's dividends per share have been stable in the past 10 years.

Growing Dividend: ANTM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.6%), 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 well covered by earnings (16.1% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Gail Boudreaux (59 yo)

2.83yrs

Tenure

US$15,473,139

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's total compensation ($USD15.47M) is above average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Gail's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gail Boudreaux
President2.83yrsUS$15.47m0.0057%
$ 3.9m
John Gallina
Executive VP & CFO4.25yrsUS$5.11m0.017%
$ 11.3m
Gloria McCarthy
Executive VP and Chief Administration Officer7.75yrsUS$5.25m0.017%
$ 11.4m
Peter Haytaian
Executive VP and President of Commercial & Specialty Business Division6.25yrsUS$5.08m0.015%
$ 9.9m
Felicia Norwood
Executive VP & President of Government Business Division2.25yrsUS$7.92m0.00052%
$ 353.4k
Scott Anglin
SVP, Treasurer & Chief Investment Officer2.42yrsno datano data
Ronald Penczek
Senior VP4.83yrsno data0.0015%
$ 999.0k
Thomas Miller
Senior VP & Chief Information Officer6.42yrsno datano data
Chris Rigg
Vice President of Investor Relations2.75yrsno datano data
Thomas Zielinski
Executive VP & General Counsel6.25yrsUS$3.98m0.0082%
$ 5.6m
Bonnie Jacobs
Senior Vice President of Corporate Communications5.42yrsno datano data
Patrick Blair
Senior VP of Commercial Business Segments & Chief Marketing Officer7.75yrsno datano data

5.1yrs

Average Tenure

60yo

Average Age

Experienced Management: ANTM's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gail Boudreaux
President2.83yrsUS$15.47m0.0057%
$ 3.9m
Ramiro Peru
Independent Director15.83yrsUS$376.38k0.0025%
$ 1.7m
Elizabeth Tallett
Independent Chairman of the Board2.42yrsUS$564.40kno data
Julie Hill
Independent Director15.83yrsUS$371.38kno data
Lewis Hay
Independent Director7.25yrsUS$343.61kno data
Ronal Clark
Independent Director6.42yrsUS$330.84kno data
Robert Dixon
Independent Director9.25yrsUS$344.52k0.0020%
$ 1.4m
Heath Gilbert
Member of Advisory Board7.17yrsno datano data
Douglas Kiefer
Member of Advisory Board7.17yrsno datano data
Karin Meng
Member of Advisory Board7.17yrsno datano data
Steven Richlin
Member of Advisory Board7.17yrsno datano data
Richard Hom
Chairman of Advisory Board & National Optometric Director7.17yrsno datano data

7.2yrs

Average Tenure

64yo

Average Age

Experienced Board: ANTM's board of directors are considered experienced (7.2 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$67.961b
  • Shares outstanding: 248.70m
  • 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
A58ETLX (Eurotlx)YesCommon StockITEUROct 2001
ANTMWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2001
A1NT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/10/31 00:47
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
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.