Voya problems

Here’s a recap of the criticisms TOMS Capital has made against Voya’s management:

• A Bad Acquisition: Voya spent $570 million to buy Benefitfocus, paying a 49% premium. TOMS argues this deal was financially harmful (“accretive dilutive”) and strategically questionable, which hurt Voya’s stock valuation.
• Mixed Messages: Management publicly called their stop-loss business a "growth engine" while privately considering selling it. TOMS says this damaged the company's credibility.
• Indecisiveness: Despite a wave of large M&A deals in the industry (e.g., $8 billion transactions), Voya’s management has been slow to act on pricing pressures and strategy.
• Misaligned Pay: Even with weak stock performance, the board approved executive compensation packages that TOMS describes as “rewarding failure.”

The Bottom Line: Voya has strong fundamentals (over $1 trillion in assets, 23% profit growth last quarter) but trades at a low forward P/E of under 8x. TOMS argues that poor management decisions, not weak operations, are holding the stock back.

Would you like to see how Voya’s valuation compares to its peers?