AET  Aetna Inc.

Exchange

NYSE

Sector

Health Care

Industry

Hospital And Medical Service Plans

Market Cap.

53.44B

Current Price

$160.92
+3.2751 (+2.0776%)

Book Price

$99.16
Overvalued by 38.38%
Financial Institution

Company Metrics

  • P/E 35.7192
  • P/S 0.8417
  • P/B 3.3986
  • EPS 4.5050
  • Dividend 2.0000 / 1.3100 %
  • Avg. Vol. 1.81M
  • Shares 332.10M
  • Market Cap. 53.44B

Company Description

Aetna Inc. operates as a diversified health care benefits company in the United States. It offers a range of health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, and disability plans, as well as medical management capabilities and Medicaid health care management. The company operates in three segments: Health Care, Group Insurance, and... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BlueCrest Capital Management Ltd Acquires Shares of 2797 Aetna Inc. (AET)
Dispatch Tribunal - Sep 15, 2017
Aetna logo BlueCrest Capital Management Ltd acquired a new position in shares of Aetna Inc. (NYSE:AET) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission.
Analyst's Predictions on PulteGroup, Inc. (PHM), Aetna Inc. (AET) - StockNewsJournal
Varied Analyst Comments On Aetna Inc. (AET), L Brands, Inc. (LB) - Post Analyst
Aetna Inc. (AET) Ex-Dividend Date Scheduled for October 11, 2017
Nasdaq - Oct 10, 2017
Aetna Inc. ( AET ) will begin trading ex-dividend on October 11, 2017. A cash dividend payment of $0.5 per share is scheduled to be paid on October 27, 2017.
Aetna Inc (NYSE:AET) Shifting Institutional Investors Sentiment - BZ Weekly
$2.08 EPS Expected for Aetna Inc (AET) - WeeklyHub
Aetna To Spend $85 Million for New HQ In New York City
Hartford Courant - Oct 17, 2017
Aetna Inc. is spending nearly $85 million on its new headquarters in New York and will generate about $51 million in tax revenue for the city, according to its application to the city for financial assistance.
Is Aetna Inc. (AET) a Great Stock for Value Investors?
Nasdaq - Sep 22, 2017
Right now, Aetna Inc. has a P/S ratio of about 0.8. This is substantially lower than the S&P 500 average, which comes in at 3.2 right now.
Aetna Inc. (AET) Stake Lowered by Shikiar Asset Management Inc.
Dispatch Tribunal - 13 minutes ago
Aetna logo Shikiar Asset Management Inc. cut its holdings in Aetna Inc. (NYSE:AET) by 3.3% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
Lookout for Price Target? Aetna Inc. (AET), KeyCorp (KEY) - StockNewsJournal
Aetna Inc. (AET) Moves Higher on Volume Spike for October 18 - Equities.com (blog)
Stocks Getting Far Too Much Hype: Vanda Pharmaceuticals Inc. (VNDA), Aetna Inc ...
Post Analyst - 1 hour ago
Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) recent gain occurred on low volume with 0.42 million contracts changing hands on 19-Oct-17.
2 Stocks to keep an eye on Today: Aetna Inc. (AET), Union Pacific Corporation ...
StockNewsJournal - Oct 16, 2017
Aetna Inc. (NYSE:AET) market capitalization at present is $51.31B at the rate of $153.06 a share. The firm's price-to-sales ratio was noted 0.00 in contrast with an overall industry average of 90.23.
Dissecting the Investment Cases for Humana Inc. (HUM) and Aetna Inc. (AET)
Economic News - Oct 19, 2017
Humana Inc. (NYSE:HUM) and Aetna Inc. (NYSE:AET) are both Healthcare companies that recently hit new low. Naturally, this has caught the attention of the investment community.
Share Activity Lifted for Aetna Inc (AET) in Session
Financial Newsweek - 58 minutes ago
Needle moving action has been spotted in Aetna Inc (AET) as shares are moving today on volatility 2.03% or 3.20 from the open.
These stock's might change the kismet of Investors: American Axle ...
StockNewsJournal - 1 hour ago
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) market capitalization at present is $2.03B at the rate of $18.31 a share.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AET to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AET's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

AET has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AET has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 41.49B 49.87B 53.40B 53.42B 69.15B
Cash ROIC - - - - -

Satisfactory Return on Equity over the past 5 years

AET has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

AET has generated $14.24 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 1.66B 1.91B 2.04B 2.39B 2.27B
divided by
Stockholders' Equity 10.41B 14.03B 14.48B 16.11B 17.88B
Return on Equity 15.93% 13.64% 14.09% 14.83% 12.70%

Poor Business Performance over the past 10 years

AET's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AET has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Low or No Reinvestment of Profits over the past 10 years

AET has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to AET operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 10.14B 9.72B 10.26B 10.40B 10.35B 10.34B 10.56B 11.05B 12.80B 14.72B
Retained Earnings Growth - -4.16% 5.56% 1.42% -0.53% -0.03% 2.04% 4.70% 15.80% 15.00%

Highly Competitive Industry over the past 10 years

It's likely that AET is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely AET invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 1.83B 1.38B 1.28B 1.77B 1.99B 1.66B 1.91B 2.04B 2.39B 2.27B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

AET is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that AET has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

AET has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that AET may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 1.83B 1.38B 1.28B 1.77B 1.99B 1.66B 1.91B 2.04B 2.39B 2.27B
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

AET has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests AET is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 20.00M 18.40M 17.30M 16.10M 167.20M 239.10M 278.70M 320.60M 348.70M 351.00M
divided by
Shares Outstanding 527.67M 489.08M 449.50M 422.90M 380.20M 345.00M 359.20M 359.10M 352.60M 354.30M
Dividend Paid Per Share 0.04 0.04 0.04 0.04 0.44 0.69 0.78 0.89 0.99 0.99
Price at Year End 56.73 28.83 31.61 29.95 42.02 45.56 68.15 90.14 108.93 124.01
Dividend Yield 0.07% 0.13% 0.12% 0.13% 1.05% 1.52% 1.14% 0.99% 0.91% 0.80%

Strong History of Stock Buybacks over the past 10 years

AET has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 527.67M 489.08M 449.50M 422.90M 380.20M 345.00M 359.20M 359.10M 352.60M 354.30M
Stock Bought Back - 7.89% 8.81% 6.29% 11.23% 10.20% -3.95% 0.03% 1.84% -0.48%
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