Magellan Health, Inc.
Find Ratings ReportsMAGELLAN HEALTH INC's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. MAGELLAN HEALTH INC is extremely liquid. Currently, the Quick Ratio is 2.81 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 33.78% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 1184.96 | 1133.78 |
| EBITDA ($mil) | 5.94 | 50.42 |
| EBIT ($mil) | -20.47 | 22.55 |
| Net Income ($mil) | 268.93 | 20.58 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 1328.84 | 698.34 |
| Total Assets ($mil) | 3359.86 | 3092.17 |
| Total Debt ($mil) | 677.83 | 741.24 |
| Equity ($mil) | 1869.97 | 1397.78 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 0.5 | 4.45 |
| EBITDA Margin | 0.5 | 4.44 |
| Operating Margin | -1.73 | 1.99 |
| Sales Turnover | 1.36 | 1.48 |
| Return on Assets | 11.37 | 1.8 |
| Return on Equity | 0.22 | 0.9 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 2.92 | 1.84 |
| Debt/Capital | 0.27 | 0.35 |
| Interest Expense | 6.63 | 8.83 |
| Interest Coverage | -3.09 | 2.56 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 25.89 | 24.62 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.96 | 0.38 |
| Book value / share | 72.24 | 56.77 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 274120.0 | 258518.0 |
HOLD. MAGELLAN HEALTH INC's P/E ratio indicates a significant premium compared to an average of 59.84 for the Administrative and Support Services subsector and a significant premium compared to the S&P 500 average of 43.53. For additional comparison, its price-to-book ratio of 1.30 indicates a significant discount versus the S&P 500 average of 4.31 and a significant discount versus the subsector average of 11.56. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MGLN 521.89 | Peers 22.96 | MGLN 13.55 | Peers 12.04 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. MGLN is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MGLN is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MGLN 23.43 | Peers 16.71 | MGLN 0.29 | Peers 1.17 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MGLN is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MGLN trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| MGLN 1.30 | Peers 11.56 | MGLN -64.71 | Peers 164.68 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MGLN is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MGLN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| MGLN 0.53 | Peers 2.35 | MGLN 0.26 | Peers 15.55 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MGLN is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MGLN significantly trails its peers on the basis of sales growth. |
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