Magellan Health Profitability Analysis

MGLN
 Stock
  

USD 94.99  0.00  0.00%   

For Magellan Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Magellan Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Magellan Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Magellan Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Magellan Health over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
Return on Sales is expected to rise to 0.08 this year, although the value of Price to Sales Ratio will most likely fall to 0.39. Magellan Health Consolidated Income is quite stable at the moment as compared to the past year. The company's current value of Consolidated Income is estimated at 474.4 Million. Net Income is expected to rise to about 474.4 M this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (199.1 K).

Magellan Health Revenues

5.24 Billion

Is Magellan Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Magellan Health. If investors know Magellan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Magellan Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Magellan Health is measured differently than its book value, which is the value of Magellan that is recorded on the company's balance sheet. Investors also form their own opinion of Magellan Health's value that differs from its market value or its book value, called intrinsic value, which is Magellan Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Magellan Health's market value can be influenced by many factors that don't directly affect Magellan Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Magellan Health's value and its price as these two are different measures arrived at by different means. Investors typically determine Magellan Health value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magellan Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Magellan Health Market Capitalization vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Magellan Health's current stock value. Our valuation model uses many indicators to compare Magellan Health value to that of its competitors to determine the firm's financial worth.
Magellan Health is considered to be number one stock in profit margin category among related companies. It is considered to be number one stock in market capitalization category among related companies creating about  399,361,022  of Market Capitalization per Profit Margin. Magellan Health Profit Margin is quite stable at the moment as compared to the past year. The company's current value of Profit Margin is estimated at 0.08. Comparative valuation analysis is a catch-all model that can be used if you cannot value Magellan Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Magellan Health's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Magellan Health's earnings, one of the primary drivers of an investment's value.

Magellan Market Capitalization vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Magellan Health 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
6.26 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Magellan Health 
Market Cap 
 = 
Shares Outstanding 
X  
Share Price 
2.5 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Magellan Market Capitalization vs Competition

Magellan Health is considered to be number one stock in market capitalization category among related companies. Market capitalization of Healthcare Plans industry is now estimated at about 1.34 Trillion. Magellan Health adds roughly 2.5 Billion in market capitalization claiming only tiny portion of equities under Healthcare Plans industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Magellan Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Magellan Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Magellan Health will eventually generate negative long term returns. The profitability progress is the general direction of Magellan Health's change in net profit over the period of time. It can combine multiple indicators of Magellan Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-184.5 K-199.1 K
Consolidated Income439.7 M474.4 M
Net Income439.7 M474.4 M
Net Income Common Stock439.7 M474.4 M
Net Loss Income from Discontinued Operations-340.5 M-349.4 M
Net Income to Non Controlling Interests-75.9 K-81.9 K
Operating Income-12.3 M-12.6 M
Income Tax Expense-40.1 M-41.1 M
Net Income Per Employee48.7 K52.6 K
Magellan Health, Inc., together with its subsidiaries, provides healthcare management services in the United States. As of January 4, 2022, Magellan Health, Inc. operates as a subsidiary of Centene Corporation. Magellan Health operates under Healthcare Plans classification in the United States and is traded on NASDAQ Exchange. It employs 9000 people.

Magellan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Magellan Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Magellan Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Magellan Health's important profitability drivers and their relationship over time.

Magellan Health Profitability Trends

Magellan Health profitability trend refers to the progression of profit or loss within a business. An upward trend means that Magellan Health's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Magellan Health's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Magellan Health Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Magellan Health different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Magellan Health in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Magellan Health's future profitability.

Use Magellan Health in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Magellan Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magellan Health will appreciate offsetting losses from the drop in the long position's value.

Magellan Health Pair Trading

Magellan Health Pair Trading Analysis

The ability to find closely correlated positions to Magellan Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Magellan Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Magellan Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Magellan Health to buy it.
The correlation of Magellan Health is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Magellan Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Magellan Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Magellan Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Magellan Health position

In addition to having Magellan Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Furniture
Furniture Theme
Companies producing and selling home and office furniture. The Furniture theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Furniture Theme or any other thematic opportunities.
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Additionally, see Stocks Correlation. Note that the Magellan Health information on this page should be used as a complementary analysis to other Magellan Health's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Tools for Magellan Stock

When running Magellan Health price analysis, check to measure Magellan Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Magellan Health is operating at the current time. Most of Magellan Health's value examination focuses on studying past and present price action to predict the probability of Magellan Health's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Magellan Health's price. Additionally, you may evaluate how the addition of Magellan Health to your portfolios can decrease your overall portfolio volatility.
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