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Why NYSE:UNH qualifies as a quality stock.

By Mill Chart

Last update: Sep 25, 2023

In this article we will dive into UNITEDHEALTH GROUP INC (NYSE:UNH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed UNITEDHEALTH GROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of UNITEDHEALTH GROUP INC

  • The 5-year revenue growth of UNITEDHEALTH GROUP INC has been remarkable, with 10.01% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • UNITEDHEALTH GROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.5% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 2.06, UNITEDHEALTH GROUP INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of UNITEDHEALTH GROUP INC stands at 119.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of UNITEDHEALTH GROUP INC has been remarkable, with 13.33% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, UNITEDHEALTH GROUP INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NYSE:UNH telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall UNH gets a fundamental rating of 6 out of 10. We evaluated UNH against 115 industry peers in the Health Care Providers & Services industry. UNH has an excellent profitability rating, but there are some minor concerns on its financial health. UNH is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of UNH

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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