ANTM - Embedded Expectations Analysis - 2019 08 02
Anthem, Inc. (ANTM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.6x Uniform P/E, implying bearish expectations for the firm, and management has concerns about growth, margins, and their ability to provide competitive offerings.Specifically, management appears concerned about their approach to pharmacy networks and the sustainability of their partnership in Medicaid. Furthermore, they may be concerned about their new PBM, and may be concerned about the scale of their Medicare Advantage offerings. Moreover, management may be concerned about the sustainability of recent enrollment rates, and may be concerned about growth in their government segment through the remainder of 2019. Additionally, they may be concerned about their ability to meet their full-year earnings guidance and about ongoing margin dilution driven by Retiree and Medicare growth. Finally, management may lack confidence in their ability to meet their reinvestment and M&A guidance, and in their ability to continue accelerating growth.
Anthem is an insurance holding company. Through its subsidiaries, the company is a health benefits company, serving medical members through its affiliated health plans. The company has three segments: Commercial & Specialty Business, which provides fully-insured health products, managed care services to self-funded customers, and other insurance products and services; Government Business, which includes Medicare and Medicaid businesses, its subsidiary, National Government Services, and services provided to the federal government in connection with its Federal Health Products and Services business; and Other, which includes pharmacy benefits management business and integrated health services business.
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