NYSE:WCG

Stock Analysis Report

Executive Summary

WellCare Health Plans, Inc. provides government-sponsored managed care services.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has WellCare Health Plans's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

WCG

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-13.5%

WCG

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: WCG underperformed the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: WCG underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

WCGIndustryMarket
7 Day4.0%5.8%1.8%
30 Day2.6%2.5%-0.7%
90 Day-4.4%-1.8%0.06%
1 Year-13.5%-13.5%-5.0%-6.5%9.7%7.3%
3 Year131.6%131.6%33.9%28.6%46.3%36.9%
5 Year335.8%335.8%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is WellCare Health Plans 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: WCG ($274.26) is trading below our estimate of fair value ($867.38)

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


Price To Earnings Ratio

PE vs Industry: WCG is poor value based on its PE Ratio (26.1x) compared to the Healthcare industry average (20.4x).

PE vs Market: WCG is poor value based on its PE Ratio (26.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WCG is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: WCG is overvalued based on its PB Ratio (3x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is WellCare Health Plans forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCG's forecast earnings growth (17.2% per year) is above the savings rate (2.7%).

Earnings vs Market: WCG's earnings (17.2% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: WCG's revenue (8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WCG's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WCG's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has WellCare Health Plans performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WCG's earnings have grown significantly by 37.5% per year over the past 5 years.

Accelerating Growth: WCG's earnings growth over the past year (7.2%) is below its 5-year average (37.5% per year).

Earnings vs Industry: WCG earnings growth over the past year (7.2%) exceeded the Healthcare industry 5.3%.


Return on Equity

High ROE: WCG's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: WCG's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is WellCare Health Plans's financial position?


Financial Position Analysis

Short Term Liabilities: WCG's short term assets ($7.3B) exceeds its short term liabilities ($6.1B)

Long Term Liabilities: WCG's short term assets (7.3B) exceeds its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: WCG's debt to equity ratio (45.1%) is considered high

Reducing Debt: WCG's debt to equity ratio has increased from 38.7% to 45.1% over the past 5 years.

Debt Coverage: WCG's debt is not well covered by operating cash flow (0.4%).

Interest Coverage: WCG's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: WCG's debt is covered by short term assets (assets are 3.496630x debt).


Next Steps

Dividend

What is WellCare Health Plans's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate WCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Stable Dividend: Insufficient data to determine if WCG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WCG'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 WCG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Ken Burdick (60yo)

4.8yrs

Tenure

US$12,675,372

Compensation

Mr. Kenneth Alan Burdick, J.D., is also known as Ken, has been a Independent Director of First Horizon National Corporation since January 28, 2019. Mr. Burdick serves as Chief Executive Officer at WellCare ...


CEO Compensation Analysis

Compensation vs. Market: Ken's total compensation ($USD12.68M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

3.5yrs

Average Tenure

49yo

Average Age

Experienced Management: WCG's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: WCG's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$300,18406 Dec 18
H. Dallas
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,171
Max PriceUS$256.35
SellUS$506,31906 Dec 18
Michael Yount
EntityIndividual
Role
Chief Compliance Officer
Executive VP
Shares2,000
Max PriceUS$253.24
SellUS$770,55004 Dec 18
Michael Polen
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Medicare & Operations
Shares3,000
Max PriceUS$256.85
SellUS$422,02804 Dec 18
Anat Hakim
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,647
Max PriceUS$256.25
SellUS$599,90028 Nov 18
Richard Breon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$239.96
SellUS$131,69008 Nov 18
Michael Yount
EntityIndividual
Role
Chief Compliance Officer
Executive VP
Shares500
Max PriceUS$263.38

Ownership Breakdown


Management Team

  • Drew Asher (50yo)

    Executive VP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$3.36m
  • Ken Burdick (60yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$12.68m
  • Rhonda Mims (52yo)

    Executive VP & Chief Public Affairs Officer

    • Tenure: 3.2yrs
  • Kelly Munson (47yo)

    Executive Vice President of Medicaid

    • Tenure: 4.8yrs
    • Compensation: US$2.62m
  • Mike Polen (39yo)

    Executive Vice President of Medicare & Operations

    • Tenure: 3yrs
    • Compensation: US$2.59m
  • Michael Yount (43yo)

    Executive VP

    • Tenure: 5.5yrs
  • Michael Meyer (45yo)

    Chief Accounting Officer

    • Tenure: 3.5yrs
  • Darren Ghanayem (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.5yrs
  • Anat Hakim (50yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$1.99m
  • Beau Garverick

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Chris Michalik (50yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: US$513.01k
  • Bill Trubeck (72yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$314.51k
  • Kevin Hickey (67yo)

    Director

    • Tenure: 16.9yrs
    • Compensation: US$301.01k
  • Bobby Jindal (47yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$147.46k
  • H. Dallas (60yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$296.01k
  • Rick Breon (68yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$312.51k
  • Ken Burdick (60yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$12.68m
  • Kate Walsh (62yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$273.51k
  • Amy Compton-Phillips (55yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$264.51k

Company Information

WellCare Health Plans, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WellCare Health Plans, Inc.
  • Ticker: WCG
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$13.799b
  • Shares outstanding: 50.31m
  • Website: https://www.wellcare.com

Number of Employees


Location

  • WellCare Health Plans, Inc.
  • 8725 Henderson Road
  • Renaissance One
  • Tampa
  • Florida
  • 33634
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCGNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2004
UWQDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004

Biography

WellCare Health Plans, Inc. provides government-sponsored managed care services. The company operates in three segments: Medicaid Health Plans, Medicare Health Plans, and Medicare Prescription Drug Plans ( ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:54
End of Day Share Price2019/10/17 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.