ANTM - Embedded Expectations Analysis - 2020 08 03
Anthem, Inc. (ANTM:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 13.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their margins, procedure and service deferrals, and pricing strategiesHowever, they may lack confidence in their ability to address the medical and social needs of their consumers and maintain their margins, and may be downplaying concerns about their Medicaid margin trajectory. In addition, they may have concerns about commercial clients looking to buy down on their more affordable products, future medical costs rising as a result of elective procedure deferrals, and customers deferring their pharmacy benefit management services. Moreover, they may be exaggerating their deep analytic capabilities, the virtual capabilities of their care providers, and of their Sydney Care mobile app. Furthermore, they may lack confidence in their ability to execute their product pricing strategy, and in their government partnerships relative to how they will help simplify the health care experience
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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