ELEVANCE HEALTH INC (ELV)
US0367521038 - Common Stock
Taking everything into account, ELV scores 5 out of 10 in our fundamental rating. ELV was compared to 116 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of ELV while its profitability can be described as average. ELV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ELV was profitable.
ELV had a positive operating cash flow in the past year.
ELV had positive earnings in each of the past 5 years.
Each year in the past 5 years ELV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.58%, ELV belongs to the best of the industry, outperforming 81.20% of the companies in the same industry.
ELV has a Return On Equity of 15.38%. This is amongst the best in the industry. ELV outperforms 86.32% of its industry peers.
The Return On Invested Capital of ELV (7.38%) is better than 74.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELV is in line with the industry average of 8.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 15.38% | ||
| ROIC | 7.38% |
ROA(3y)5.83%
ROA(5y)5.8%
ROE(3y)16.14%
ROE(5y)15.47%
ROIC(3y)7.41%
ROIC(5y)7.44%
1.3 Margins
The Profit Margin of ELV (3.64%) is better than 77.78% of its industry peers.
ELV's Profit Margin has declined in the last couple of years.
ELV has a Operating Margin of 5.72%. This is in the better half of the industry: ELV outperforms 68.38% of its industry peers.
ELV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 3.64% | ||
| GM | N/A |
OM growth 3Y-4.32%
OM growth 5Y-2.71%
PM growth 3Y-2.34%
PM growth 5Y-3.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ELV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ELV has less shares outstanding
ELV has less shares outstanding than it did 5 years ago.
ELV has a better debt/assets ratio than last year.
2.2 Solvency
ELV has a debt to FCF ratio of 11.52. This is a negative value and a sign of low solvency as ELV would need 11.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.52, ELV is in line with its industry, outperforming 58.97% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that ELV is somewhat dependend on debt financing.
The Debt to Equity ratio of ELV (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 11.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC8.08%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.32% over the past year.
Measured over the past years, ELV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.79% on average per year.
The Revenue has been growing slightly by 6.89% in the past year.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
EPS 1Y (TTM)13.32%
EPS 3Y13.88%
EPS 5Y15.79%
EPS growth Q2Q12.47%
Revenue 1Y (TTM)6.89%
Revenue growth 3Y12.03%
Revenue growth 5Y13.21%
Revenue growth Q2Q0.24%
3.2 Future
The Earnings Per Share is expected to grow by 12.01% on average over the next years. This is quite good.
ELV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y13.27%
EPS Next 2Y12.57%
EPS Next 3Y12.64%
EPS Next 5Y12.01%
Revenue Next Year1.27%
Revenue Next 2Y3.52%
Revenue Next 3Y4.53%
Revenue Next 5Y7.05%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.97, ELV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 82.05% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ELV to the average of the S&P500 Index (28.60), we can say ELV is valued slightly cheaper.
ELV is valuated correctly with a Price/Forward Earnings ratio of 13.05.
Based on the Price/Forward Earnings ratio, ELV is valued cheaply inside the industry as 81.20% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.15. ELV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
67.52% of the companies in the same industry are more expensive than ELV, based on the Enterprise Value to EBITDA ratio.
ELV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.44 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ELV may justify a higher PE ratio.
ELV's earnings are expected to grow with 12.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)1.01
EPS Next 2Y12.57%
EPS Next 3Y12.64%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 1.20%.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.73. ELV pays more dividend than 85.47% of the companies in the same industry.
With a Dividend Yield of 1.20, ELV pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of ELV is nicely growing with an annual growth rate of 14.38%!
ELV has paid a dividend for at least 10 years, which is a reliable track record.
ELV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.38%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
22.79% of the earnings are spent on dividend by ELV. This is a low number and sustainable payout ratio.
ELV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.79%
EPS Next 2Y12.57%
EPS Next 3Y12.64%
ELEVANCE HEALTH INC
NYSE:ELV (5/17/2024, 7:04:01 PM)
After market: 547.71 0 (0%)547.71
+3.82 (+0.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap127.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.2
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 15.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.72% | ||
| PM (TTM) | 3.64% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.32%
EPS 3Y13.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.89%
Revenue growth 3Y12.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y