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0 (1y: -100%)
Market Cap 6.74 B P/E(ttm) 0.10
Enterprise Value 6.67 B P/B 0.01
CVH- NYSE (USA)
Coventry Health Care, Inc.
  • Currently 2/5
Business Predictability Rank: 2-Star (On Watch)
Back Testing Results:
Average gain of all 2-Star stocks: 6% per year.
% of Stocks that are in still loss if held for 10yrs: 16%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$0.00
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 0.959
CVH's Cash to Debt is ranked higher than
66% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.60 vs. CVH: 0.959 )
CVH' s 10-Year Cash to Debt Range
Min: 0.66   Max: 52.91
Current: 0.96
0.66
52.91
Equity to Asset 0.207
CVH's Equity to Asset is ranked higher than
87% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.38 vs. CVH: 0.207 )
CVH' s 10-Year Equity to Asset Range
Min: 0.02   Max: 0.38
Current: 0.21
0.02
0.38
Interest Coverage 7.6
CVH's Interest Coverage is ranked higher than
62% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 7.60 vs. CVH: 7.6 )
CVH' s 10-Year Interest Coverage Range
Min: 6   Max: 35
Current: 7.6
6
35
F-Score: 5
Z-Score: 3.73
M-Score: -2.31
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry		 vs
history
Operating margin (%) 5.40
CVH's Operating margin (%) is ranked higher than
72% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 4.90 vs. CVH: 5.40 )
CVH' s 10-Year Operating margin (%) Range
Min: -1.7   Max: 12
Current: 5.4
-1.7
12
Net-margin (%) 3.5
CVH's Net-margin (%) is ranked higher than
81% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 2.50 vs. CVH: 3.5 )
CVH' s 10-Year Net-margin (%) Range
Min: -0.6   Max: 7.6
Current: 3.5
-0.6
7.6
ROE (%) 10.3
CVH's ROE (%) is ranked higher than
66% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.80 vs. CVH: 10.3 )
CVH' s 10-Year ROE (%) Range
Min: -2.7   Max: 27.8
Current: 10.3
-2.7
27.8
ROA (%) 5.6
CVH's ROA (%) is ranked higher than
84% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 3.00 vs. CVH: 5.6 )
CVH' s 10-Year ROA (%) Range
Min: -1.1   Max: 14.4
Current: 5.6
-1.1
14.4
Revenue Growth (%) 2.3
CVH's Revenue Growth (%) is ranked higher than
62% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 3.70 vs. CVH: 2.3 )
CVH' s 10-Year Revenue Growth (%) Range
Min: 1.2   Max: 18.5
Current: 2.3
1.2
18.5
EBITDA Growth (%) 10.7
CVH's EBITDA Growth (%) is ranked higher than
78% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 5.60 vs. CVH: 10.7 )
CVH' s 10-Year EBITDA Growth (%) Range
Min: -6.9   Max: 49.3
Current: 10.7
-6.9
49.3
EPS Growth (%) 21
CVH's EPS Growth (%) is ranked higher than
94% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.00 vs. CVH: 21 )
CVH' s 10-Year EPS Growth (%) Range
Min: -17.1   Max: 45.7
Current: 21
-17.1
45.7
ยป CVH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

CVH Guru Trades in Q2 2012

David Einhorn 6,660,000 sh (New)
Chuck Royce 44,500 sh (New)
Jim Simons Sold Out
Jeff Auxier 37,685 sh (-0.59%)
Vanguard Health Care Fund 8,327,500 sh (-1.19%)
James Barrow 4,409,124 sh (-12.43%)
Jeremy Grantham 142,900 sh (-13.34%)
Joel Greenblatt 8,444 sh (-47.91%)
Steven Cohen 176,279 sh (-48.9%)
Paul Tudor Jones 15,400 sh (-90.72%)
» More
Q3 2012

CVH Guru Trades in Q3 2012

Mario Gabelli 224,000 sh (New)
Jean-Marie Eveillard 735,464 sh (New)
Jim Simons 196,777 sh (New)
Jeremy Grantham 958,000 sh (+570.4%)
Chuck Royce 47,000 sh (+5.62%)
Joel Greenblatt Sold Out
Steven Cohen Sold Out
Vanguard Health Care Fund 8,227,500 sh (-1.2%)
Jeff Auxier 35,840 sh (-4.9%)
Paul Tudor Jones 9,300 sh (-39.61%)
David Einhorn 2,858,000 sh (-57.09%)
James Barrow 1,807,439 sh (-59.01%)
» More
Q4 2012

CVH Guru Trades in Q4 2012

Jim Simons 257,877 sh (+31.05%)
Jeremy Grantham 915,700 sh (unchged)
James Barrow Sold Out
Jean-Marie Eveillard 653,343 sh (-11.17%)
Mario Gabelli 191,700 sh (-14.42%)
Chuck Royce 26,300 sh (-44.04%)
Paul Tudor Jones 4,600 sh (-50.54%)
Vanguard Health Care Fund 4,027,500 sh (-51.05%)
Jeff Auxier 12,138 sh (-66.13%)
David Einhorn 826,700 sh (-71.07%)
» More
Q1 2013

CVH Guru Trades in Q1 2013

Jim Simons 1,264,877 sh (+390.5%)
Paul Tudor Jones 10,400 sh (+126.09%)
Vanguard Health Care Fund 4,027,500 sh (unchged)
Jeff Auxier 12,138 sh (unchged)
David Einhorn 826,700 sh (unchged)
Jean-Marie Eveillard 620,693 sh (-5%)
Mario Gabelli 133,700 sh (-30.26%)
Jeremy Grantham 213,800 sh (-76.65%)
Chuck Royce 4,458 sh (-83.05%)
» More
» Details

Insider Trades

Latest Guru Trades with CVH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mario Gabelli 2013-03-31 Reduce -30.26%0.02%$44.25 - $47.08 $ 0.28-99%133700
Vanguard Health Care Fund 2012-12-31 Reduce -51.05%0.82%$42.22 - $44.92 $ 0.28-99%4027500
James Barrow 2012-12-31 Sold Out 0.15%$42.22 - $44.92 $ 0.28-99%0
James Barrow 2012-09-30 Reduce -59.01%0.17%$30.4 - $41.97 $ 0.28-99%1807439
Jean-Marie Eveillard 2012-09-30 New Buy0.11%$30.4 - $41.97 $ 0.28-99%735464
Mario Gabelli 2012-09-30 New Buy0.07%$30.4 - $41.97 $ 0.28-99%224000
Joel Greenblatt 2012-09-30 Sold Out 0.02%$30.4 - $41.97 $ 0.28-99%0
Joel Greenblatt 2012-06-30 Reduce -47.91%0.02%$28.95 - $35.37 $ 0.28-99%8444
Joel Greenblatt 2012-03-31 Add 49.85%0.02%$29.35 - $34.86 $ 0.28-99%16209
Joel Greenblatt 2011-03-31 New Buy0.08%$26.4 - $32.3 $ 0.28-99%7862
David Dreman 2010-12-31 Sold Out 0.01%$20.47 - $26.93 $ 0.28-99%0
David Dreman 2010-03-31 Reduce -32.56%$22.33 - $26.71 $ 0.28-99%10710
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Guru Investment Theses on Coventry Health Care, Inc.

David Einhorn on CVH - Jul 24, 2012

CVH is a regional managed care company with operations in the mid-Atlantic, Midwest and parts of the South. The company offers commercial risk-based insurance and has an expanding business in the government-sponsored Medicaid and Medicare programs. Problems with a recently-acquired three-year contract to provide managed care services to the Medicaid population in Kentucky caused the company to significantly reduce earnings guidance for 2012. This led to a large drop in the stock price. We believe the issues related to the Kentucky contract are manageable and finite, and CVH will return to breakeven or a profit on this contract in 2013 from a loss this year. Our average purchase price of $31.22 represents 8x our forecast for 2014 earnings net of $6 per share of cash and reflects our estimate of the negative impact of Obamacare. CVH closed the quarter at $31.79 per share.
Check out David Einhorn latest stock trades

Top Ranked Articles about Coventry Health Care, Inc.

Weekly 3-Year Low Highlights: CVH, PBT, VCRA, JAKK, BELFA
May 8, 2013
According to GuruFocus' list of three-year lows, Coventry Health Care Inc., Permian Basin Royalty Trust, Vocera Communications Inc., Bel Fuse Inc. and Jakks Pacific Inc. have all reached their three-year lows. Read more...
David Einhorn's Top Picks from Health Care Sector
August 14, 2012
David Einhorn - David Einhorn's Top Picks From Health Care Sector
David Einhorn is the head of Greenlight Capital, a hedge fund. He has positioned his portfolio to benefit from a repeal of Obamacare by buying mostly health care stocks. โ€œWhile the stocks are already cheap, there is the additional unpriced upside in the possibility that the election changes the political landscape, resulting in a possible modification or repeal of Obamacare,โ€ he said in his second quarter letter. Read more...
David Einhorn on CVH
July 24, 2012
CVH is a regional managed care company with operations in the mid-Atlantic, Midwest and parts of the South. The company offers commercial risk-based insurance and has an expanding business in the government-sponsored Medicaid and Medicare programs. Problems with a recently-acquired three-year contract to provide managed care services to the Medicaid population in Kentucky caused the company to significantly reduce earnings guidance for 2012. This led to a large drop in the stock price. We believe the issues related to the Kentucky contract are manageable and finite, and CVH will return to breakeven or a profit on this contract in 2013 from a loss this year. Our average purchase price of $31.22 represents 8x our forecast for 2014 earnings net of $6 per share of cash and reflects our estimate of the negative impact of Obamacare. CVH closed the quarter at $31.79 per share. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 0.10
CVH's P/E(ttm) is ranked higher than
52% of the 27 Companies
in the Global Health Care Plans industry.

( Industry Median: 12.90 vs. CVH: 0.10 )
CVH' s 10-Year P/E(ttm) Range
Min: 0.1   Max: 31.34
Current: 0.1
0.1
31.34
P/B 0.01
CVH's P/B is ranked higher than
71% of the 31 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.61 vs. CVH: 0.01 )
CVH' s 10-Year P/B Range
Min: 0.01   Max: 4.76
Current: 0.01
0.01
4.76
PFCF 0.10
CVH's PFCF is ranked lower than
71% of the 24 Companies
in the Global Health Care Plans industry.

( Industry Median: 11.10 vs. CVH: 0.10 )
CVH' s 10-Year PFCF Range
Min: 0.1   Max: 1475
Current: 0.1
0.1
1475
EV-to-EBIT 8.78
CVH's EV-to-EBIT is ranked higher than
63% of the 27 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.02 vs. CVH: 8.78 )
CVH' s 10-Year EV-to-EBIT Range
Min: 2.5   Max: 72.2
Current: 8.78
2.5
72.2
PEG 0.01
CVH's PEG is ranked lower than
63% of the 16 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.62 vs. CVH: 0.01 )
CVH' s 10-Year PEG Range
Min: 0.01   Max: 6.49
Current: 0.01
0.01
6.49
Shiller P/E 0.08
CVH's Shiller P/E is ranked lower than
100% of the Companies
in the Global Health Care Plans industry.

( Industry Median: vs. CVH: 0.08 )
CVH' s 10-Year Shiller P/E Range
Min: 0.08   Max: 40.63
Current: 0.08
0.08
40.63

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.00
CVH's Dividend Yield is ranked higher than
56% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.00 vs. CVH: 1.00 )
CVH' s 10-Year Dividend Yield Range
Min: 0.35   Max: 1.13
Current: 1
0.35
1.13
Yield on cost (5-Year) 1.00
CVH's Yield on cost (5-Year) is ranked higher than
50% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.10 vs. CVH: 1.00 )
CVH' s 10-Year Yield on cost (5-Year) Range
Min: 0.35   Max: 1.13
Current: 1
0.35
1.13
Share Buyback Rate 1.9
CVH's Share Buyback Rate is ranked higher than
78% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.00 vs. CVH: 1.9 )
CVH' s 10-Year Share Buyback Rate Range
Min: 2.9   Max: -6.3
Current: 1.9

Valuation & Return

vs
industry		 vs
history
Earnings Yield (Greenblatt) 11.40
CVH's Earnings Yield (Greenblatt) is ranked higher than
72% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 8.50 vs. CVH: 11.40 )
CVH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.4   Max: 39.9
Current: 11.4
1.4
39.9
Forward Rate of Return (Yacktman) 997.48
CVH's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 32 Companies
in the Global Health Care Plans industry.

( Industry Median: 2.26 vs. CVH: 997.48 )
CVH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 5.6   Max: 105.8
Current: 997.48
5.6
105.8

Business Description

Coventry Health Care, Inc. was incorporated under the laws of the State of Delaware on December 17, 1997 and is the successor to Coventry Corporation, which was incorporated on November 21, 1986. The Company is a national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers' compensation services companies. Through its Commercial Business, Individual Consumer & Government Business, and Specialty Business divisions, Coventry provides a full range of risk and fee-based managed care products and services to a cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. Coventry's Commercial Business Division provides products to a cross section of employer groups of all sizes including health maintenance organization, preferred provider organization and point of service products. The Company also offers commercial management services products on a self-funded basis where it performs administrative services only for a fee and the customer assumes the risk for medical costs. Within these products, it also offers consumer-directed benefit options including health reimbursement accounts and health savings accounts. Coventry's Individual Consumer & Government Division provides health benefits to members participating in the Medicare Advantage HMO, Medicare Advantage PPO, Medicare Advantage Private Fee-for-Service, Medicare Prescription Drug, and Medicaid programs and receives premium payments from federal and state governments. The Company's Specialty Business Division provides workers' compensation managed care services on a fee-based basis, with products including access to its provider network, pharmacy benefits management, field case management, telephonic case management, and independent medical exam and bill review capabilities. Coventry operates local health plans that serve 27 states, mainly in the Mid-Atlantic, Midwest and Southeast United States. The Company's health plans are operated under the names Altius Health Plans, Carelink Health Plans, Coventry Health Care, Coventry Health and Life, Group Health Plan, HealthAmerica, HealthAssurance, HealthCare USA, OmniCare, PersonalCare, Southern Health, Vista and WellPath. Coventry's health plans offer a range of managed care products that fall into both the Commercial Business Division and the Individual Consumer & Government Business Division. The Company's health plan Commercial products include traditional HMO, PPO, and POS risk products, as well as self-funded products. Coventry's health plan Individual Consumer & Government products include medical risk products sold to individual consumers. The Company's health plans offer employer groups a full range of commercial risk products, designed to meet the needs and objectives of a range of employers and members, as well as to comply with the regulatory requirements in the markets w
Company Website
SEC Reports
Industry: Health Care Plans
Compare:UNH, ESRX, WLP, HUM, AET
Traded in other countries:HCA.Germany
ยป More Articles for CVH

Headlines

Articles On GuruFocus.com
Weekly 3-Year Low Highlights: CVH, PBT, VCRA, JAKK, BELFA May 08 2013 
Hedge Fund Manager David Einhorn Buys Into GOOG, VOD, WDC, Sells STX, CVH Feb 15 2013 
David Einhorn made $69 MM in Coventry's purchase by Aetna Aug 22 2012 
David Einhorn Buys Top Picks from Health Care Sector Aug 14 2012 
David Einhorn on CVH Jul 24 2012 
David Einhorn Second Quarter Letter: Jul 24 2012 
What the Supreme Court's "Obamacare" Ruling Means for Health Care Stocks Jun 28 2012 
Ira Sohn Value Investing Conference Notes Jun 11 2011 
Coventry Health Care Inc. (CVH) CEO Allen F Wise sells 105,898 Shares Dec 06 2010 
Coventry Health Care Inc. (CVH) Pres. & CEO Workers Comp Div. David Wayne Young sells 8,334 Shares Dec 02 2010 

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