UNITEDHEALTH GROUP INC (UNH)
US91324P1021 - Common Stock
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 118 industry peers in the Health Care Providers & Services industry. UNH scores excellent on profitability, but there are concerns on its financial health. UNH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
UNH had positive earnings in the past year.
In the past year UNH had a positive cash flow from operations.
Each year in the past 5 years UNH has been profitable.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
UNH's Return On Assets of 5.40% is amongst the best of the industry. UNH outperforms 80.34% of its industry peers.
UNH's Return On Equity of 16.63% is amongst the best of the industry. UNH outperforms 87.18% of its industry peers.
The Return On Invested Capital of UNH (9.26%) is better than 87.18% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.46%. This is in line with the industry average of 8.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROIC | 9.26% |
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
UNH's Profit Margin of 4.05% is fine compared to the rest of the industry. UNH outperforms 79.49% of its industry peers.
In the last couple of years the Profit Margin of UNH has grown nicely.
Looking at the Operating Margin, with a value of 8.49%, UNH belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
UNH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| 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
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.
Compared to 5 years ago, UNH has less shares outstanding
Compared to 1 year ago, UNH has an improved debt to assets ratio.
2.2 Solvency
UNH has a debt to FCF ratio of 7.00. This is a slightly negative value and a sign of low solvency as UNH would need 7.00 years to pay back of all of its debts.
UNH has a Debt to FCF ratio of 7.00. This is in the better half of the industry: UNH outperforms 70.09% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that UNH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, UNH perfoms like the industry average, outperforming 50.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
UNH has a Current ratio of 0.66. This is amonst the worse of the industry: UNH underperforms 84.62% of its industry peers.
A Quick Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
UNH has a Quick ratio of 0.66. This is amonst the worse of the industry: UNH underperforms 80.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
UNH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
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.
Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
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)13.33%
EPS 3Y14.19%
EPS 5Y14.31%
EPS growth Q2Q14.38%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Revenue growth Q2Q8.56%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
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 Y11.42%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
EPS Next 5Y12.92%
Revenue Next Year8.57%
Revenue Next 2Y8.15%
Revenue Next 3Y8.19%
Revenue Next 5Y8.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.30 indicates a rather expensive valuation of UNH.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.11, UNH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.90, the valuation of UNH can be described as correct.
Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than 74.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 66.67% of the companies listed in the same industry.
UNH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.94 | ||
| EV/EBITDA | 13.86 |
4.3 Compensation for Growth
UNH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UNH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UNH's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)1.69
PEG (5Y)1.35
EPS Next 2Y12.15%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, UNH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.74, UNH pays a better dividend. On top of this UNH pays more dividend than 88.03% of the companies listed in the same industry.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of UNH is nicely growing with an annual growth rate of 16.15%!
UNH has been paying a dividend for at least 10 years, so it has 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 Years19
5.3 Sustainability
UNH pays out 45.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.26%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
UNITEDHEALTH GROUP INC
NYSE:UNH (5/8/2024, 12:24:05 PM)
502.25
+1.29 (+0.26%)
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 Cap462.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 15.9 | ||
| 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)1.69
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| 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 Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| 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)
Growth
EPS 1Y (TTM)13.33%
EPS 3Y14.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
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