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WellCare Health Plans

NYSE:WCG
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WCG
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

WellCare Health Plans, Inc. provides government-sponsored managed care services. The last earnings update was 49 days ago. More info.


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WCG Share Price and Events
7 Day Returns
2.4%
NYSE:WCG
0.1%
US Healthcare
0.1%
US Market
1 Year Returns
23.9%
NYSE:WCG
-2.5%
US Healthcare
1.2%
US Market
WCG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WellCare Health Plans (WCG) 2.4% 7.6% 21.2% 23.9% 175.5% 294.9%
US Healthcare 0.1% 3.3% -2.5% -2.5% 23.3% 62.4%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • WCG outperformed the Healthcare industry which returned -2.5% over the past year.
  • WCG outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
WCG
Industry
5yr Volatility vs Market

WCG Value

 Is WellCare Health Plans 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 WellCare Health Plans 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 WellCare Health Plans.

NYSE:WCG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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:WCG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.639 (1 + (1- 21%) (16.11%))
0.812
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.812 * 5.96%)
7.57%

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

The calculations below outline how an intrinsic value for WellCare Health Plans is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WCG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.57%)
2019 1,107.10 Analyst x3 1,029.17
2020 1,217.27 Analyst x3 1,051.93
2021 1,367.20 Analyst x3 1,098.33
2022 1,276.20 Analyst x1 953.05
2023 1,305.20 Analyst x1 906.10
2024 1,328.12 Est @ 1.76% 857.11
2025 1,355.33 Est @ 2.05% 813.10
2026 1,385.86 Est @ 2.25% 772.89
2027 1,419.07 Est @ 2.4% 735.70
2028 1,454.49 Est @ 2.5% 700.98
Present value of next 10 years cash flows $8,918.36
NYSE:WCG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,454.49 × (1 + 2.73%) ÷ (7.57% – 2.73%)
$30,857.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $30,857.56 ÷ (1 + 7.57%)10
$14,871.67
NYSE:WCG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,918.36 + $14,871.67
$23,790.03
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $23,790.03 / 50.30
$472.93
NYSE:WCG Discount to Share Price
Calculation Result
Value per share (USD) From above. $472.93
Current discount Discount to share price of $295.71
= -1 x ($295.71 - $472.93) / $472.93
37.5%

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

Current Discount
Amount off the current price WellCare Health Plans is available for.
Intrinsic value
37%
Share price is $295.71 vs Future cash flow value of $472.93
Current Discount Checks
For WellCare Health Plans to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • WellCare Health Plans's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • WellCare Health Plans'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 WellCare Health Plans's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WellCare Health Plans's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WCG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $10.17
NYSE:WCG Share Price ** NYSE (2019-06-18) in USD $295.71
United States of America Healthcare Industry PE Ratio Median Figure of 57 Publicly-Listed Healthcare Companies 21.49x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

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

** Primary Listing of WellCare Health Plans.

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

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

= 295.71 ÷ 10.17

29.08x

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

  • WellCare Health Plans is overvalued based on earnings compared to the US Healthcare industry average.
  • WellCare Health Plans is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does WellCare Health Plans's expected growth come at a high price?
Raw Data
NYSE:WCG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
17.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 43 Publicly-Listed Healthcare Companies 1.69x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.08x ÷ 17.6%

1.65x

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

  • WellCare Health Plans is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WellCare Health Plans's assets?
Raw Data
NYSE:WCG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $87.30
NYSE:WCG Share Price * NYSE (2019-06-18) in USD $295.71
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:WCG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 295.71 ÷ 87.30

3.39x

* Primary Listing of WellCare Health Plans.

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

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

WCG Future Performance

 How is WellCare Health Plans expected to perform in the next 1 to 3 years based on estimates from 12 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
17.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WellCare Health Plans expected to grow at an attractive rate?
  • WellCare Health Plans's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • WellCare Health Plans's earnings growth is expected to exceed the United States of America market average.
  • WellCare Health Plans's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WCG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WCG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 17.6%
NYSE:WCG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 8.5%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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:WCG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WCG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 35,061 1,778 1,151 1
2022-12-31 33,394 1,646 1,018 1
2021-12-31 32,573 1,380 943 5
2020-12-31 31,180 1,101 760 10
2019-12-31 26,746 965 608 10
NYSE:WCG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 22,530 -197 490
2018-12-31 20,414 279 440
2018-09-30 18,688 3 445
2018-06-30 18,033 1,492 486
2018-03-31 17,699 1,134 408
2017-12-31 17,007 1,050 374
2017-09-30 16,180 914 358
2017-06-30 15,361 1,143 255
2017-03-31 14,651 1,222 272
2016-12-31 14,237 748 242
2016-09-30 14,216 1,555 210
2016-06-30 14,073 727 178

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WellCare Health Plans's earnings are expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
  • WellCare Health Plans's revenue is expected to grow by 8.5% 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:WCG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from WellCare Health Plans Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WCG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 21.45 21.45 21.45 1.00
2022-12-31 19.21 19.21 19.21 1.00
2021-12-31 17.92 19.27 16.12 4.00
2020-12-31 14.73 16.65 13.18 7.00
2019-12-31 11.92 13.65 10.99 7.00
NYSE:WCG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 10.17
2018-12-31 9.40
2018-09-30 9.79
2018-06-30 10.89
2018-03-31 9.16
2017-12-31 8.40
2017-09-30 8.06
2017-06-30 5.75
2017-03-31 6.13
2016-12-31 5.47
2016-09-30 4.76
2016-06-30 4.03

*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.
  • WellCare Health Plans is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess WellCare Health Plans'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.
WellCare Health Plans has a total score of 3/6, 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.

WCG Past Performance

  How has WellCare Health Plans 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 WellCare Health Plans'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.
  • WellCare Health Plans has delivered over 20% year on year earnings growth in the past 5 years.
  • WellCare Health Plans's 1-year earnings growth is less than its 5-year average (19.9% vs 35.1%)
  • WellCare Health Plans's earnings growth has exceeded the US Healthcare industry average in the past year (19.9% vs 2.2%).
Earnings and Revenue History
WellCare Health Plans'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 WellCare Health Plans Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WCG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 22,530.10 489.50 1,807.80
2018-12-31 20,414.10 439.80 1,667.00
2018-09-30 18,688.40 444.60 1,575.40
2018-06-30 18,033.20 485.60 1,521.00
2018-03-31 17,699.20 408.10 1,492.70
2017-12-31 17,007.20 373.70 1,440.80
2017-09-30 16,180.30 357.90 1,310.80
2017-06-30 15,361.40 254.90 1,213.60
2017-03-31 14,650.80 271.60 1,146.80
2016-12-31 14,237.10 242.10 1,109.20
2016-09-30 14,215.70 210.20 1,112.80
2016-06-30 14,072.70 178.00 1,120.20
2016-03-31 13,960.80 138.90 1,102.60
2015-12-31 13,890.20 118.60 1,095.80
2015-09-30 13,808.20 113.40 1,041.40
2015-06-30 13,774.70 96.30 1,027.00
2015-03-31 13,444.10 37.10 1,000.40
2014-12-31 12,959.90 63.70 988.80
2014-09-30 11,983.80 98.80 899.60
2014-06-30 11,076.70 143.50 856.90
2014-03-31 10,257.00 197.90 833.40
2013-12-31 9,527.90 175.30 810.50
2013-09-30 9,077.30 181.14 827.01
2013-06-30 8,395.29 155.43 785.00
2013-03-31 7,874.27 154.97 738.61
2012-12-31 7,409.00 184.70 652.60
2012-09-30 7,021.04 221.02 680.99
2012-06-30 6,747.00 270.99 664.78

*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.
  • WellCare Health Plans has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • WellCare Health Plans used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • WellCare Health Plans's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WellCare Health Plans'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.
WellCare Health Plans has a total score of 2/6, 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.

WCG Health

 How is WellCare Health Plans'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 WellCare Health Plans's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WellCare Health Plans is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • WellCare Health Plans's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of WellCare Health Plans'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 3.7x 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 WellCare Health Plans Company Filings, last reported 2 months ago.

NYSE:WCG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,391.20 2,395.80 4,203.90
2018-12-31 4,240.00 2,126.40 4,484.00
2018-09-30 4,162.40 2,125.40 5,341.00
2018-06-30 2,671.90 1,183.80 5,892.00
2018-03-31 2,502.40 1,183.00 5,532.70
2017-12-31 2,416.70 1,182.40 4,668.10
2017-09-30 2,333.40 1,181.60 5,383.50
2017-06-30 2,152.30 1,180.80 4,543.20
2017-03-31 2,063.70 2,080.10 6,005.20
2016-12-31 2,000.10 997.60 4,085.60
2016-09-30 1,942.90 997.40 4,081.40
2016-06-30 1,866.40 1,097.20 2,712.90
2016-03-31 1,767.10 1,097.10 2,574.00
2015-12-31 1,728.30 1,199.10 2,611.40
2015-09-30 1,709.20 1,212.70 1,649.90
2015-06-30 1,669.10 1,213.30 1,560.30
2015-03-31 1,614.10 900.00 1,380.00
2014-12-31 1,595.90 900.00 1,486.30
2014-09-30 1,582.10 900.00 1,742.50
2014-06-30 1,559.80 600.00 1,336.60
2014-03-31 1,561.70 600.00 1,947.00
2013-12-31 1,517.90 600.00 1,797.20
2013-09-30 1,474.60 336.50 1,708.15
2013-06-30 1,402.62 346.00 1,506.44
2013-03-31 1,351.22 355.50 1,649.17
2012-12-31 1,323.10 135.00 1,320.80
2012-09-30 1,273.30 138.75 1,272.14
2012-06-30 1,231.50 142.50 1,400.86
  • WellCare Health Plans's level of debt (48.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.4% vs 48.4% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess WellCare Health Plans'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. WellCare Health Plans 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.

WCG Dividends

 What is WellCare Health Plans'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%
Current annual income from WellCare Health Plans dividends. Estimated to be 0% next year.
If you bought $2,000 of WellCare Health Plans shares you are expected to receive $0 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?
  • Unable to evaluate WellCare Health Plans's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate WellCare Health Plans's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:WCG 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 12 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 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 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WCG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

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

  • Unable to perform a dividend volatility check as WellCare Health Plans has not reported any payouts.
  • Unable to verify if WellCare Health Plans's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of WellCare Health Plans's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as WellCare Health Plans has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of WellCare Health Plans's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess WellCare Health Plans'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 WellCare Health Plans afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WellCare Health Plans has a total score of 0/6, see the detailed checks below.


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

WCG Management

 What is the CEO of WellCare Health Plans'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
Ken Burdick
COMPENSATION $12,675,372
AGE 59
TENURE AS CEO 4.4 years
CEO Bio

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 Health Plans Inc. (“WellCare”) since January 2015. He joined WellCare as President, National Health Plans, in January 2014. He was promoted to President and Chief Operating Officer in June 2014 and was named a member of the board of directors in December 2014. During his 38-year career in healthcare, he spent 14 years as an executive with UnitedHealth Group, rising through positions of increasing responsibility, including senior vice president, national underwriting, Chief Executive Officer of UnitedHealthcare and Chief Executive Officer of the company’s Secure Horizon retail Medicare business. He served as a Director at Beecken Petty O'Keefe & Company. He began his career at Cigna where he spent 15 years in various underwriting, sales and marketing roles. Throughout his career, he has served on a number of nonprofit boards, including the board of directors of the United Way in both Minneapolis and Phoenix. He currently serves as the 2020 board chair-elect for America’s Health Insurance Plans (AHIP), the national trade association representing the health insurance community, and board chair for Big Brothers Big Sisters of America, the nation's oldest one-to-one youth mentoring organization. He holds a bachelor’s degree in American Studies from Amherst College in 1980 and a law degree J.D. from the University of Connecticut School of Law in 1985.

CEO Compensation
  • Ken's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ken's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the WellCare Health Plans management team in years:

3.2
Average Tenure
48
Average Age
  • The tenure for the WellCare Health Plans management team is about average.
Management Team

Ken Burdick

TITLE
CEO & Director
COMPENSATION
$13M
AGE
59
TENURE
4.4 yrs

Drew Asher

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
49
TENURE
4.6 yrs

Mike Polen

TITLE
Executive Vice President of Medicare & Operations
COMPENSATION
$3M
AGE
38
TENURE
2.7 yrs

Anat Hakim

TITLE
Executive VP
COMPENSATION
$2M
AGE
49
TENURE
2.8 yrs

Kelly Munson

TITLE
Executive Vice President of Medicaid
COMPENSATION
$3M
AGE
46
TENURE
4.5 yrs

Michael Meyer

TITLE
Chief Accounting Officer
AGE
44
TENURE
3.2 yrs

Darren Ghanayem

TITLE
Executive VP & Chief Information Officer
AGE
48
TENURE
3.2 yrs

Beau Garverick

TITLE
Vice President

Michael Yount

TITLE
Executive VP
AGE
42
TENURE
5.2 yrs

Rhonda Mims

TITLE
Executive VP & Chief Public Affairs Officer
AGE
51
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the WellCare Health Plans board of directors in years:

4.3
Average Tenure
59
Average Age
  • The tenure for the WellCare Health Plans board of directors is about average.
Board of Directors

Chris Michalik

TITLE
Chairman of the Board
COMPENSATION
$513K
AGE
49
TENURE
4.3 yrs

Ken Burdick

TITLE
CEO & Director
COMPENSATION
$13M
AGE
59
TENURE
4.5 yrs

Kevin Hickey

TITLE
Director
COMPENSATION
$301K
AGE
66
TENURE
16.6 yrs

Bill Trubeck

TITLE
Director
COMPENSATION
$315K
AGE
71
TENURE
9.3 yrs

Rick Breon

TITLE
Director
COMPENSATION
$313K
AGE
67
TENURE
5.8 yrs

H. Dallas

TITLE
Director
COMPENSATION
$296K
AGE
59
TENURE
2.8 yrs

Amy Compton-Phillips

TITLE
Director
COMPENSATION
$265K
AGE
54
TENURE
1.1 yrs

Kate Walsh

TITLE
Director
COMPENSATION
$274K
AGE
61
TENURE
1.1 yrs

Bobby Jindal

TITLE
Director
COMPENSATION
$147K
AGE
46
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Dec 18 Buy H. Dallas Individual 04. Dec 18 04. Dec 18 1,171 $256.35 $300,184
06. Dec 18 Sell Michael Yount Individual 04. Dec 18 04. Dec 18 -2,000 $253.24 $-506,319
04. Dec 18 Sell Michael Polen Individual 03. Dec 18 03. Dec 18 -3,000 $256.85 $-770,550
04. Dec 18 Sell Anat Hakim Individual 30. Nov 18 30. Nov 18 -1,647 $256.25 $-422,028
28. Nov 18 Sell Richard Breon Individual 27. Nov 18 27. Nov 18 -2,500 $239.96 $-599,900
08. Nov 18 Sell Michael Yount Individual 07. Nov 18 07. Nov 18 -500 $263.38 $-131,690
X
Management checks
We assess WellCare Health Plans'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. WellCare Health Plans 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.

WCG News

Simply Wall St News

Don't Sell WellCare Health Plans, Inc. (NYSE:WCG) Before You Read This

WellCare Health Plans has a price to earnings ratio of 25.72, based on the last twelve months. … How Do I Calculate WellCare Health Plans's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Was WellCare Health Plans, Inc.'s (NYSE:WCG) Earnings Growth Better Than The Industry's?

Today I will take a look at WellCare Health Plans, Inc.'s (NYSE:WCG) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the healthcare industry performed. … Did WCG beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 33%, indicating the rate at which WCG is growing has slowed down

Simply Wall St -

What does WellCare Health Plans, Inc.'s (NYSE:WCG) Balance Sheet Tell Us About Its Future?

Let’s take a look at WellCare Health Plans’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … See our latest analysis for WellCare Health Plans

Simply Wall St -

How Many Insiders Sold WellCare Health Plans, Inc. (NYSE:WCG) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in WellCare Health Plans, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

WellCare Health Plans, Inc. (NYSE:WCG): What Are The Future Prospects?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In December 2018, WellCare Health Plans, Inc.

Simply Wall St -

What Should You Know About WellCare Health Plans, Inc.'s (NYSE:WCG) Growth?

Based on WellCare Health Plans, Inc.'s (NYSE:WCG) earnings update in September 2018, … analyst consensus outlook appear cautiously optimistic, … with profits predicted to increase by 23% next year,

Simply Wall St -

Investors Are Undervaluing WellCare Health Plans, Inc. (NYSE:WCG) By 36.7%

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of WellCare Health Plans, Inc. … by projecting its future cash flows and then discounting them to today's value. … If you are reading this and its not January 2019 then I highly recommend you check out the latest calculation for WellCare Health Plans by following the link below

Simply Wall St -

Is WellCare Health Plans, Inc. (NYSE:WCG) Struggling With Its 11% Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

With A 11% Return On Equity, Is WellCare Health Plans, Inc. (NYSE:WCG) A Quality Stock?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of WellCare Health Plans, Inc. … Our data shows WellCare Health Plans has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Investigate WellCare Health Plans Inc (NYSE:WCG) At US$239?

saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $321.88 and falling to the lows of $231.74. … A question to answer is whether WellCare Health Plans's current trading price of $238.85 reflective of the actual value of the? … Let’s take a look at WellCare Health Plans’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

WCG Company Info

Description

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 (PDPs). The Medicaid Health Plans segment offers plans for beneficiaries of temporary assistance for needy families, supplemental security income, and aged blind and disabled residents; and other state-based programs, such as children's health insurance programs and long-term services and supports programs for qualifying families who are not eligible for Medicaid. The Medicare Health Plans segment provides Medicare, a federal program that provides eligible persons aged 65 and over, as well as some disabled persons with a range of hospital, medical, and prescription drug benefits; Medicare Advantage, a Medicare’s managed care alternative to the original Medicare program, which offers individuals standard Medicare benefits directly through Centers for Medicare & Medicaid Services; and coordinated care plans that are administered through health maintenance organizations and require members to seek health care services and select a primary care physician from a network of health care providers. The Medicare PDPs segment provides Medicare part D PDP plans to Medicare-eligible beneficiaries. Its PDP plans offer national in-network prescription drug coverage, including a preferred pharmacy network. As of December 31, 2018, the company served approximately 5.5 million members in the United States. WellCare Health Plans, Inc. was founded in 1985 and is headquartered in Tampa, Florida.

Details
Name: WellCare Health Plans, Inc.
WCG
Exchange: NYSE
Founded: 1985
$14,875,220,483
50,303,407
Website: http://www.wellcare.com
Address: WellCare Health Plans, Inc.
8725 Henderson Road,
Renaissance One,
Tampa,
Florida, 33634,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WCG Common Stock New York Stock Exchange US USD 01. Jul 2004
DB UWQ Common Stock Deutsche Boerse AG DE EUR 01. Jul 2004
Number of employees
Current staff
Staff numbers
12,000
WellCare Health Plans employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:57
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.