Aetna Inc.

(NYSE: AET)
February 25, 2014

Analyst Consensus
Rating1

Contents
1.
2.

Overview
Technical Data

3.

Key Ratios

4.

Earnings & Analyst

5.6.

Financial Statements

7.

Company Insiders

8.

Disclaimer

About Aetna Inc.

Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates
in three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment provides
medical, pharmacy benefit management, dental, behavioral health, and vision plans on an insured basis, and
an employer-funded or administrative basis. This segment also provides Medicare and Medicaid products and
services, as well as other medical products, such as medical management and data analytics services, medical stop
loss insurance, and products that provide access to its provider networks in select markets. This segment offers
its products and services to multi-site national, mid-sized, and small employers, as well as individual customers.
The Group Insurance segment provides life insurance products that consist of group term life insurance, voluntary
spouse and dependent term life insurance, group universal life, and accidental death and dismemberment insurance; disability insurance products; and long-term care insurance products, which offer benefits to cover the
cost of care in private home settings, adult day care, assisted living, or nursing facilities. This segment provides
insurance products principally to employers that sponsor its products for the benefit of their employees and their
employees dependents. The Large Case Pensions segment manages various retirement products, including pension and annuity products for tax-qualified pension plans. The companys customers include employer groups,
individuals, college students, part-time and hourly workers, health plans, health care providers, governmental
units, government-sponsored plans, labor groups, and expatriates. Aetna Inc. was founded in 1853 and is headquartered in Hartford, Connecticut.

Overview

Key Data

Sector

Healthcare

Last Trade

$71.80

Industry

Health Care Plans

Price Range (52 week)

46.05 - 72.43

Employees

35000

Avg Volume (13 Week)

2,730,000

IPO Year

N/A

Shares Outstanding

367,500,000

Mkt Cap

$26,010,000,000

Enterprise Value

$30,340,000,000

Book Value per Share

$37.06

Dividend Yield

1.3%

Highlights & Recent Developments

Aetna shares traded in the range of $70.15 to $72.43 Monday before settling
to close at $71.80, an increase of 1.95 percent. The stock appears to have some
support at the $71.72, $68.88 and $68.22 levels. Shares of Aetna have gained approximately 5.0 percent year-to-date.

Tenet Healthcare Corp. and Aetna have signed a new, expanded two-year agreement providing members of Aetnas and Coventrys commercial and Medicare
Advantage health plans with covered health care services at Tenets 77 hospitals,
186 outpatient centers and Tenet Physicians, Inc., which contracts for more than
1,500 physicians employed by various Tenet subsidiaries.
Aetna announced fourth-quarter 2013 operating earnings of $495.4 million, or
$1.34 per share, a per share increase of 43 percent over the fourth quarter of
2012.

Analyst Consensus Rating based on publicly

reported third party data. See disclaimer.

Page 1 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

Technical Data
Price Information
52 Week Low

$46.05

52 Week High

$72.43

50 Day Moving Average

$68.96

200 Day Moving Average

$66.00

Average Daily Volume (13Wk)

2,730,000

Support / Resistance
Type

Value

Confluence

--

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--

--

--

--

--

--

--

--

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Technical Signals

Indicator

Signal

Strength

Direction

Composite Indicator

Trend Spotter

Buy

Strong

Strongest

7 Day Average Directional Indicator

Buy

Maximum

Strongest

10 - 8 Day Moving Average Hilo Channel

Buy

Maximum

Strongest

20 Day Moving Average vs Price

Buy

Strong

Strongest

20 - 50 Day MACD Oscillator

Sell

Minimum

Average

20 Day Bollinger Bands

Buy

Weak

Strongest

40 Day Commodity Channel Index

Buy

Weak

Strongest

50 Day Moving Average vs Price

Buy

Strong

Strongest

20 - 100 Day MACD Oscillator

Buy

Average

Strengthening

50 Day Parabolic Time/Price

Buy

Maximum

Strongest

60 Day Commodity Channel Index

Buy

Average

Strongest

100 Day Moving Average vs Price

Buy

Maximum

Strongest

50 - 100 Day MACD Oscillator

Buy

Maximum

Strongest

Short-Term Indicators

Medium-Term Indicators

Long-Term Indicators

Page 2 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

Key Statistics & Ratios

Valuation Ratios
Company

Industry

Sector

P/E Ratio (TTM)

13.17

14.80

13.93

P/E High - Last 5 Yrs.

12.87

67.37

24.52

P/E Low - Last 5 Yrs.

7.30

16.19

10.13

Beta

0.86

1.29

1.38

Price to Sales (TTM)

0.54

1.54

5.37

Price to Book (MRQ)

0.00

1.29

2.89

Price to Tangible Book (MRQ)

0.00

1.64

2.94

Price to Cash Flow (TTM)

10.70

15.27

13.73

Price to Free Cash Flow (TTM)

0.00

2.24

4.23

% Owned Institutions

0.0%

0.0%

0.0%

Growth Rates
Company

Industry

Sector

Sales (MRQ) vs Qtr. 1 Yr. Ago

32.8%

13.6%

22.1%

Sales (TTM) vs TTM 1 Yr. Ago

29.2%

26.6%

18.3%

Sales - 5 Yr. Growth Rate

8.9%

7.0%

12.9%

EPS (MRQ) vs Qtr. 1 Yr. Ago

77.4%

158.4%

29.3%

EPS (TTM) vs TTM 1 Yr. Ago

11.7%

0.0%

0.0%

EPS - 5 Yr. Growth Rate

13.5%

0.8%

25.8%

Capital Spending - 5 Yr. Growth

Rate

0.0%

4.2%

32.5%

Management Effectiveness

Financial Strength
Company

Industry

Sector

Quick Ratio (MRQ)

0.00

0.00

0.10

Current Ratio (MRQ)

0.00

0.00

2.60

LT Debt to Equity (MRQ)

0.00

22.49

25.86

Total Debt to Equity (MRQ)

0.00

76.24

42.04

Interest Coverage (TTM)

10.79

34.15

0.42

Company

Industry

Sector

Gross Margin (TTM)

0.0%

1.4%

4.2%

Gross Margin - 5 Yr. Avg.

0.0%

0.4%

3.8%

EBITD Margin (TTM)

7.7%

0.0%

0.0%

EBITD - 5 Yr. Avg.

8.7%

9.6%

0.0%

Operating Margin (TTM)

6.7%

8.0%

45.6%

Operating Margin - 5 Yr. Avg.

7.7%

6.4%

40.5%

Pre-Tax Margin (TTM)

6.2%

8.4%

47.0%

Pre-Tax Margin - 5 Yr. Avg.

7.0%

6.0%

100.2%

Profitability

Company

Industry

Sector

Return On Assets (TTM)

0.0%

0.9%

3.2%

Return On Assets - 5 Yr. Avg.

0.0%

0.8%

2.7%

Return On Investment (TTM)

0.0%

0.0%

0.9%

Return On Investment - 5 Yr Avg

0.0%

0.0%

0.7%

Return On Equity (TTM)

0.0%

10.2%

23.8%

Return On Equity - 5 Yr. Avg.

0.0%

8.0%

23.7%

Company

Industry

Sector

Revenue/Employee (TTM)

61,986,698

42,241,143

Net Income/Employee (TTM)

2,158,440

13,545,973

Receivable Turnover (TTM)

0.00

0.00

5.92

Inventory Turnover (TTM)

0.00

0.00

1.11

Asset Turnover (TTM)

0.00

0.14

0.02

Efficiency

Dividends
Company

Industry

Sector

1.3%

1.5%

2.0%

Net Profit Margin (TTM)

4.0%

6.5%

37.5%

Dividend Yield

Net Profit Margin - 5 Yr. Avg.

4.6%

4.5%

90.0%

Dividend Yield - 5 Year Avg.

1.0%

1.3%

1.9%

Effective Tax Rate (TTM)

35.0%

26.3%

20.6%

Dividend 5 Year Growth Rate

82.1%

-2.5%

6.6%

Effective Tax Rate - 5 Yr. Avg.

34.4%

32.7%

24.5%

Payout Ratio (TTM)

0.0%

17.8%

24.5%

Page 3 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

Earnings & Analyst Data

EPS Estimates

Dividend Payments
# of Ests.

Mean Est.

High Est.

Low Est.

Quarter Ending Mar-14

16

$1.56

$1.69

Quarter Ending Jun-14

16

$1.65

$1.82

Year Ending Dec-14

19

$6.37

$6.75

Year Ending Dec-15

15

$7.12

$7.80

$1.44

Dividend
Amount

Ex-dividend Date Payable

Date

$1.49

--

--

--

$6.05

--

--

--

$6.54

--

--

--

--

--

--

--

--

--

--

--

--

EPS Historical Surprises

Estimates

Actual

Difference

Surprise %

--

--

--

Quarter Ending Dec-13

$1.36

$1.34

$0.02

1.13%

--

--

--

Quarter Ending Sep-13

$1.53

$1.50

$0.03

2.04%

--

--

--

Quarter Ending Jun-13

$1.41

$1.52

$0.11

8.09%

--

--

--

Quarter Ending Mar-13

$1.39

$1.50

$0.11

8.24%

--

--

--

Quarter Ending Dec-12

$0.95

$0.94

$0.01

1.54%

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Analyst Recommendation Summary

CURRENT

1 MONTH
AGO

2 MONTHS
AGO

3 MONTHS
AGO

Strong Buy (1.0)

11

10

10

10

Moderate Buy (2.0)

Hold (3.0)

Moderate Sell (4.0)

Strong Sell (5.0)

Mean Recommendation

1.6

1.7

1.7

1.7

Current Consensus

Moderate Buy

Analyst Upgrades & Downgrades

Mean Target:

Page 4 of 8

High Target:

$83.00

Low Target:

$72.00

No. of Brokers:

$18.00

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

Financial Statements

Figures in Millions of US Dollars (exept per share values)

Balance Sheet

Annual

Quarterly

Period Ending

31-Dec-12

31-Dec-11

31-Dec-10

30-Sep-13

30-Jun-13

31-Mar-13

31-Dec-12

Cash And Cash Equivalents

2,579

680

1,868

2,082

2,257

3,228

2,579

Short Term Investments

--

--

--

--

--

--

--

Net Receivables

2,629

2,547

2,525

4,021

4,353

2,893

2,629

Inventory

--

--

--

--

--

--

--

Other Current Assets

--

--

--

--

--

--

--

Total Current Assets

--

--

--

--

--

--

--

Long Term Investments

22,162

20,491

20,130

23,290

22,989

22,046

22,162

Property Plant and Equipment

540

557

529

716

689

539

540

Goodwill

6,214

6,204

5,146

10,206

10,216

6,209

6,214

Intangible Assets

819

959

496

2,159

2,225

786

819

Accumulated Amortization

--

--

--

--

--

--

--

Other Assets

6,125

6,770

6,689

6,233

6,477

6,464

6,125

Deferred Long Term Asset Charges

427

387

357

546

525

352

427

Total Assets

41,495

38,593

37,739

49,253

49,730

42,517

41,495

Accounts Payable

2,881

2,729

2,437

3,238

3,144

2,565

2,881

Short/Current Long Term Debt

--

426

--

--

546

100

--

Other Current Liabilities

--

--

--

--

--

--

--

Total Current Liabilities

--

--

--

--

--

--

--

Long Term Debt

6,528

4,404

4,593

8,817

9,297

6,798

6,528

Other Liabilities

21,680

21,340

20,819

22,979

23,283

22,133

21,680

Deferred Long Term Liability Charges

--

--

--

550

505

295

--

Total Liabilities

31,089

28,473

27,849

35,635

36,280

31,836

31,089

Misc Stocks Options Warrants

--

--

--

--

--

--

--

Redeemable Preferred Stock

--

--

--

--

--

--

--

Preferred Stock

--

--

--

--

--

--

--

Common Stock

1,095

963

652

4,356

4,320

1,210

1,095

Retained Earnings

10,344

10,347

10,402

10,718

10,606

10,585

10,344

Treasury Stock

--

--

--

--

--

--

--

Capital Surplus

--

--

--

--

--

--

--

Other Stockholder Equity

(1,033)

(1,189)

(1,163)

(1,456)

(1,475)

(1,114)

(1,033)

Total Stockholder Equity

10,406

10,120

9,891

13,618

13,450

10,681

10,406

Net Tangible Assets (Book Value)

3,373

2,958

4,249

1,253

1,010

3,685

3,373

Assets

Liabilities

Stockholders Equity

Page 5 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014
Income Statement

Annual

Quarterly

Period Ending

31-Dec-12

31-Dec-11

31-Dec-10

30-Sep-13

30-Jun-13

31-Mar-13

31-Dec-12

Total Revenue

36,596

33,780

34,246

13,036

11,537

9,539

9,926

Cost of Revenue

25,737

23,530

24,733

9,719

8,546

6,939

6,611

Gross Income

10,859

10,250

9,513

3,317

2,991

2,600

3,315

Research and Development

--

--

--

--

--

--

--

Selling General and Administrative

7,818

6,804

6,519

2,359

2,094

1,739

2,866

Non Recurring

--

--

--

--

--

--

--

Others

142

121

95

65

52

32

33

Total Operating Expenses

7,960

6,925

6,614

2,424

2,146

1,772

2,899

Operating Income or Loss

2,545

3,078

2,644

893

923

751

62

Total Other Income(Expenses) Net

(85)

--

--

--

86

--

(50)

Earnings Before Interest And Taxes

2,814

3,325

2,899

893

931

829

366

Interest Expense

269

247

255

86

84

78

77

Income Tax Expense

888

1,092

877

288

315

260

101

Net Income From Continuing Ops

1,658

1,986

1,767

519

533

491

189

Other Items not from Continuing Operations

--

--

--

(0)

(1)

Net Income attributable to the Company

1,658

1,986

1,767

519

536

490

190

Preferred Stock And Other Adjustments

--

--

--

--

--

--

--

Net Income Applicable To Common Shares

1,658

1,986

1,767

519

536

490

190

Cash Flow Statement

Annual

Period Ending

31-Dec-12

31-Dec-11

31-Dec-10

30-Sep-13

30-Jun-13

31-Mar-13

31-Dec-12

Net Income

1,658

1,986

1,767

519

536

490

190

Depreciation

472

449

416

156

147

118

118

Adjustments To Net Income

52

(25)

(179)

53

(80)

(24)

16

Changes In Accounts Receivables

(152)

23

(33)

216

(105)

(411)

95

Changes In Liabilities

26

(103)

(459)

19

(317)

280

Changes In Inventories

--

--

--

--

--

--

--

Changes In Other Operating Activities

(233)

178

(129)

108

(139)

89

120

Total Cash Flow From Operating Activities

1,822

2,508

1,412

1,071

40

544

542

Capital Expenditures

(338)

(372)

(289)

(143)

(102)

(86)

(86)

Investments

116

48

923

(151)

752

217

323

Other Cash flows from Investing Activities

(9)

(1,556)

(0)

--

(1,636)

--

Total Cash Flows From Investing Activities

(231)

(1,880)

635

(294)

(986)

134

237

Dividends Paid

(239)

(167)

(16)

(74)

(65)

(66)

(59)

Sale Purchase of Stock

(1,462)

(1,688)

(1,563)

(339)

(426)

(125)

(521)

Net Borrowings

1,962

217

(546)

446

100

1,728

Other Cash Flows from Financing Activities

48

33

(21)

20

61

13

Total Cash Flows From Financing Activities

309

(1,816)

(1,383)

(951)

(25)

(29)

1,162

Effect Of Exchange Rate Changes

--

--

--

--

--

--

--

Other Liabilities

21,680

21,340

20,819

22,979

23,283

22,133

21,680

Quarterly

Operating Activities

Investing Activities

Financing Activities

Page 6 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

Company Insiders
Company Officers
Name

Age Since

Current Position

Basic Compensation

Options

Options Value

Mark Bertolini

56

2011

Chairman of the Board, President, Chief Executive Officer

$13,285,900

112,000

$3,076,360

Joseph Zubretsky

56

2013

Chief Financial Officer, Chief Enterprise Risk Officer,

Senior Executive Vice President - National Businesses

$6,202,180

--

--

Shawn Guertin

47

2013

Chief Financial Officer, Senior Vice President and Chief

Enterprise Risk Officer

--

--

--

Margaret McCarthy

59

2010

Executive Vice President - Operations and Technology

$4,002,100

93,405

$487,384

Frank McCauley

49

2012

Executive Vice President - Commercial Businesses

--

--

--

Karen Rohan

50

2013

Executive Vice President - Local and Regional Businesses

$4,360,110

--

--

William Casazza

57

2006

Senior Vice President, General Counsel

$3,515,510

32,666

$843,072

Lonny Reisman

57

2008

Senior Vice President, Chief Medical Officer

$3,079,490

96,489

$1,260,760

Edward Ludwig

61

2012

Lead Independent Director

--

--

--

Molly Coye

66

2005

Director

--

--

--

Fernando Aguirre

56

2011

Independent Director

--

--

--

Frank Clark

67

2006

Independent Director

--

--

--

Betsy Cohen

71

1994

Independent Director

--

--

--

Roger Farah

60

2007

Independent Director

--

--

--

Insider Transactions
Trading Date

Name

Title

Type

Shares Traded

Price

18 Feb 2014

PARMESWAR RAJAN

Officer

Sell

3600

$69.46

13 Feb 2014

COYE MOLLY JOEL

Director

Sell

750

$68.47

13 Feb 2014

CASAZZA WILLIAM JAMES

General Counsel

Sell

21705

$68.92

2 Feb 2014

BERTOLINI MARK T

Chief Executive Officer

Buy

92076

$0.00

2 Feb 2014

GUERTIN SHAWN M

Chief Financial Officer

Buy

11348

$0.00

2 Feb 2014

REISMAN LONNY

Officer

Sell

5551

$67.06

2 Feb 2014

MCCARTHY MARGARET M

Officer

Sell

13028

$67.06

2 Feb 2014

ZUBRETSKY JOSEPH M

Officer

Sell

22566

$67.06

2 Feb 2014

BERTOLINI MARK T

Chief Executive Officer

Buy

54570

$0.00

2 Feb 2014

ZUBRETSKY JOSEPH M

Officer

Sell

14663

$67.06

2 Feb 2014

BERTOLINI MARK T

Chief Executive Officer

Sell

44612

$67.06

2 Feb 2014

BERTOLINI MARK T

Chief Executive Officer

Buy

31534

$0.00

2 Feb 2014

PARMESWAR RAJAN

Officer

Buy

2625

$0.00

2 Feb 2014

PARMESWAR RAJAN

Officer

Buy

4427

$0.00

2 Feb 2014

MCCARTHY MARGARET M

Officer

Buy

18493

$0.00

2 Feb 2014

MCCARTHY MARGARET M

Officer

Buy

31203

$0.00

2 Feb 2014

GUERTIN SHAWN M

Chief Financial Officer

Sell

3861

$67.06

2 Feb 2014

REISMAN LONNY

Officer

Buy

18155

$0.00

2 Feb 2014

REISMAN LONNY

Officer

Buy

10761

$0.00

2 Feb 2014

REISMAN LONNY

Officer

Sell

7215

$67.06

Page 7 of 8

2013 Wall Street Fundamentals.

All rights reserved.

Aetna Inc.
(NYSE: AET)
February 25, 2014

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