UNITEDHEALTH GROUP INC (UNH)

US91324P1021 - Common Stock

564.5  +1.54 (+0.27%)

After market: 563.5 -1 (-0.18%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 115 industry peers in the Health Care Providers & Services industry. UNH has an excellent profitability rating, but there are concerns on its financial health. UNH has a correct valuation and a medium growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year UNH was profitable.
In the past year UNH had a positive cash flow from operations.
UNH had positive earnings in each of the past 5 years.
UNH had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 4.78%, UNH belongs to the best of the industry, outperforming 80.70% of the companies in the same industry.
The Return On Equity of UNH (14.33%) is better than 86.84% of its industry peers.
UNH has a better Return On Invested Capital (8.60%) than 85.09% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.46%. This is above the industry average of 7.68%.
Industry RankSector Rank
ROA 4.78%
ROE 14.33%
ROIC 8.6%
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%

1.3 Margins

The Profit Margin of UNH (3.63%) is better than 78.95% of its industry peers.
UNH's Profit Margin has improved in the last couple of years.
UNH has a better Operating Margin (8.18%) than 79.82% of its industry peers.
In the last couple of years the Operating Margin of UNH has grown nicely.
Industry RankSector Rank
OM 8.18%
PM (TTM) 3.63%
GM N/A
OM growth 3Y-0.02%
OM growth 5Y2.58%
PM growth 3Y0.18%
PM growth 5Y2.6%
GM growth 3YN/A
GM growth 5YN/A

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNH is still creating some value.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
UNH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNH has an improved debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of UNH is 6.07, which is on the high side as it means it would take UNH, 6.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.07, UNH is doing good in the industry, outperforming 76.32% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.74. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: UNH outperforms 44.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.07
Altman-Z N/A
ROIC/WACC1.02
WACC8.42%

2.3 Liquidity

UNH has a Current Ratio of 0.66. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of UNH (0.66) is worse than 85.96% of its industry peers.
UNH has a Quick Ratio of 0.66. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, UNH is not doing good in the industry: 81.58% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.22% over the past year.
Measured over the past years, UNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.31% on average per year.
UNH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.42%.
UNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.43% yearly.
EPS 1Y (TTM)12.22%
EPS 3Y14.19%
EPS 5Y14.31%
EPS Q2Q%8.99%
Revenue 1Y (TTM)9.42%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Sales Q2Q%9.16%

3.2 Future

Based on estimates for the next years, UNH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y11.44%
EPS Next 2Y11.96%
EPS Next 3Y12.24%
EPS Next 5Y12.92%
Revenue Next Year8.14%
Revenue Next 2Y8%
Revenue Next 3Y7.78%
Revenue Next 5Y8.07%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 20.70, UNH is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 71.93% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (30.16), we can say UNH is valued slightly cheaper.
UNH is valuated rather expensively with a Price/Forward Earnings ratio of 17.93.
Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.06. UNH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.7
Fwd PE 17.93

4.2 Price Multiples

UNH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 68.42% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 40.59
EV/EBITDA 15.47

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UNH may justify a higher PE ratio.
A more expensive valuation may be justified as UNH's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)1.81
PEG (5Y)1.45
EPS Next 2Y11.96%
EPS Next 3Y12.24%

6

5. Dividend

5.1 Amount

UNH has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.70. UNH pays more dividend than 85.96% of the companies in the same industry.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
Industry RankSector Rank
Dividend Yield 1.5%

5.2 History

On average, the dividend of UNH grows each year by 16.15%, which is quite nice.
UNH has paid a dividend for at least 10 years, which is a reliable track record.
UNH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.15%
Div Incr Years14
Div Non Decr Years33

5.3 Sustainability

51.26% of the earnings are spent on dividend by UNH. This is a bit on the high side, but may be sustainable.
The dividend of UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.26%
EPS Next 2Y11.96%
EPS Next 3Y12.24%

UNITEDHEALTH GROUP INC

NYSE:UNH (10/31/2024, 7:00:00 PM)

After market: 563.5 -1 (-0.18%)

564.5

+1.54 (+0.27%)

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 Cap521.27B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.5%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
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 RankSector Rank
PE 20.7
Fwd PE 17.93
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)1.81
PEG (5Y)1.45
Profitability
Industry RankSector Rank
ROA 4.78%
ROE 14.33%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.18%
PM (TTM) 3.63%
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 Turnover1.32
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.66
Quick Ratio 0.66
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)
High Growth Momentum
Growth
EPS 1Y (TTM)12.22%
EPS 3Y14.19%
EPS 5Y
EPS Q2Q%
EPS Next Y11.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.42%
Revenue growth 3Y13.06%
Revenue growth 5Y
Sales 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