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| Comapny name |
: |
WellPoint Inc |
| Share |
: |
WLP |
Analysis date |
: |
17-Mar-2008 |
| Stock exchange |
: |
NYSE |
Rating |
: |
8/9 |
|
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
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2) Sales has increased Consistently over 5 years? |
Yes |
| |
3) Cash Flow has increased consistently over 5 years? |
Yes |
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4) What is the historical/projected EPS growth rate?
|
14.40% |
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|
|
| 2 |
Sunstainable Competitive Advantage |
| |
1) The company has a sustainable competitive advantage? |
Yes |
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WellPoint, Inc. is a commercial health benefits company serving approximately 34 million medical members. |
|
|
| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
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WellPoint has been workiing closely with partners in both the public and private
sectors to find solutions to the nation’s health care challenges.
They have met with the President, members of Congress, governors, and state and federal regulatory officials on such key issues as transparency, health information technology, health care quality, and the uninsured. |
|
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| 4 |
Conservative Debt |
| |
1) The company has Long Term Debt <3x Net Profit? |
Yes |
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2) Long-Term Debt is $
|
6,493.20 million |
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3) Net Profit is $
|
3,094.90 million |
| |
|
|
| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
Yes |
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2) The company has ROA>7% over 5 years? |
No |
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|
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| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
Yes |
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|
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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|
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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$4,044.20 million (cashflow) |
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2) Projected Earnings Growth Rate
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14.40% |
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3) Number of shares outstanding
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642 million |
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4) Intrinsic Value
|
104.03 |
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5) Share price is below intrinsic value? |
Yes |
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|
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
Yes |
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2) Stock price at a dip on a uptrend |
No |
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3) Stock price above 20 or 50 day moving average |
Yes |
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