WellCare Health Plans, Inc. [NYSE:WCG]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For WellCare Health Plans, Inc. [WCG], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give WCG an Outperform rating. Its stock price has been found in the range of 194.52 to 324.99. This is compared to its latest closing price of $269.89.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for WellCare Health Plans, Inc. [WCG] is sitting at 2.07. This is compared to 1 month ago, when its average rating was 1.83.
For the quarter ending in Dec-18 WellCare Health Plans, Inc. [WCG] generated $6.07 billion in sales. That’s 4.16% higher than the average estimate of $5.83 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 30 Apr (In 13 Days).
Fundamental Analysis of WellCare Health Plans, Inc. [WCG]
Now let’s turn to look at profitability: with a current Operating Margin for WellCare Health Plans, Inc. [WCG] sitting at +3.88, this company’s Net Margin is now 2.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.91, and its Return on Invested Capital has reached 7.00%. Its Return on Equity is 13.21, and its Return on Assets is 4.33. These metrics suggest that this WellCare Health Plans, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, WellCare Health Plans, Inc. [WCG] has generated a Total Debt to Total Equity ratio of 50.15. Similarly, its Total Debt to Total Capital is 33.40, while its Total Debt to Total Assets stands at 17.91. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 50.15, and its Long-Term Debt to Total Capital is 33.40.
What about valuation? This company’s Enterprise Value to EBITDA is 13.08. The Enterprise Value to Sales for this firm is now 0.62, and its Total Debt to Enterprise Value stands at 0.16. WellCare Health Plans, Inc. [WCG] has a Price to Book Ratio of 2.78, a Price to Cash Flow Ratio of 40.07 and P/E Ratio of 27.57. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, WellCare Health Plans, Inc. [WCG] earns $1,701,175 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 2.01. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 1.26.
WellCare Health Plans, Inc. [WCG] has 49.99M shares outstanding, amounting to a total market cap of $12.96B. Its stock price has been found in the range of 194.52 to 324.99. At its current price, it has moved by -20.23% from its 52-week high, and it has moved 33.28% from its 52-week low.
This stock’s Beta value is currently 1.23, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.02. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is WellCare Health Plans, Inc. [WCG] a Reliable Buy?
WellCare Health Plans, Inc. [WCG] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.