ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
NYSE:ELV - New York Stock Exchange, Inc. - US0367521038 - Common Stock - Currency: USD
Taking everything into account, ELV scores 5 out of 10 in our fundamental rating. ELV was compared to 103 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 is not valued too expensively and it also shows a decent growth rate. ELV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ELV had positive earnings in the past year.
In the past year ELV had a positive cash flow from operations.
In the past 5 years ELV has always been profitable.
ELV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ELV has a Return On Assets of 4.94%. This is in the better half of the industry: ELV outperforms 77.67% of its industry peers.
With an excellent Return On Equity value of 13.92%, ELV belongs to the best of the industry, outperforming 82.52% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.28%, ELV is doing good in the industry, outperforming 65.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ELV is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 13.92% | ||
| ROIC | 6.28% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.9%
ROIC(5y)7.19%
1.3 Margins
The Profit Margin of ELV (3.23%) is better than 66.99% of its industry peers.
In the last couple of years the Profit Margin of ELV has declined.
ELV's Operating Margin of 4.97% is fine compared to the rest of the industry. ELV outperforms 60.19% of its industry peers.
ELV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.97% | ||
| PM (TTM) | 3.23% | ||
| GM | N/A |
OM growth 3Y-7.78%
OM growth 5Y-4.45%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELV is destroying value.
Compared to 1 year ago, ELV has less shares outstanding
ELV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ELV has a worse debt to assets ratio.
2.2 Solvency
ELV has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as ELV would need 8.32 years to pay back of all of its debts.
ELV's Debt to FCF ratio of 8.32 is in line compared to the rest of the industry. ELV outperforms 54.37% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ELV is somewhat dependend on debt financing.
The Debt to Equity ratio of ELV (0.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC7.93%
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 been growing slightly by 0.03% 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 11.17% on average per year.
ELV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.63%.
Measured over the past years, ELV shows a quite strong growth in Revenue. The Revenue has been growing by 11.14% on average per year.
EPS 1Y (TTM)0.03%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%12.5%
Revenue 1Y (TTM)6.63%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%15.36%
3.2 Future
ELV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.57% yearly.
Based on estimates for the next years, ELV will show a quite strong growth in Revenue. The Revenue will grow by 8.96% on average per year.
EPS Next Y5.39%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
EPS Next 5Y12.57%
Revenue Next Year11.04%
Revenue Next 2Y9.15%
Revenue Next 3Y8.84%
Revenue Next 5Y8.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ELV is valuated reasonably with a Price/Earnings ratio of 9.91.
91.26% of the companies in the same industry are more expensive than ELV, based on the Price/Earnings ratio.
ELV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of ELV can be described as reasonable.
88.35% of the companies in the same industry are more expensive than ELV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.19. ELV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
69.90% of the companies in the same industry are more expensive than ELV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ELV is valued a bit cheaper than the industry average as 62.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ELV does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.84
PEG (5Y)0.89
EPS Next 2Y9.72%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, ELV has a reasonable but not impressive dividend return.
The stock price of ELV dropped by -22.54% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.51. ELV pays more dividend than 91.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, ELV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of ELV grows each year by 15.34%, which is quite nice.
ELV has paid a dividend for at least 10 years, which is a reliable track record.
ELV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
25.60% 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.
DP25.6%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
340.07
-0.6 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change7.41%
Market Cap76.83B
Analysts79.29
Price Target503.25 (47.98%)
Short Float %1.11%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend6.55
Dividend Growth(5Y)15.34%
DP25.6%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)0.17%
Max EPS beat(2)4.12%
EPS beat(4)3
Avg EPS beat(4)-2.45%
Min EPS beat(4)-14.2%
Max EPS beat(4)4.12%
EPS beat(8)6
Avg EPS beat(8)-0.5%
EPS beat(12)9
Avg EPS beat(12)0.34%
EPS beat(16)12
Avg EPS beat(16)1.48%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)4.3%
Revenue beat(4)2
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)4.3%
Revenue beat(8)3
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.74%
Revenue beat(16)9
Avg Revenue beat(16)0.66%
PT rev (1m)-0.55%
PT rev (3m)-0.66%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-6.92%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.42 | ||
| P/FCF | 21.29 | ||
| P/OCF | 16.07 | ||
| P/B | 1.81 | ||
| P/tB | 35.85 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)34.3
EY10.09%
EPS(NY)39.69
Fwd EY11.67%
FCF(TTM)15.97
FCFY4.7%
OCF(TTM)21.16
OCFY6.22%
SpS810.53
BVpS188.12
TBVpS9.49
PEG (NY)1.84
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 13.92% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 12.57% | ||
| OM | 4.97% | ||
| PM (TTM) | 3.23% | ||
| GM | N/A | ||
| FCFM | 1.97% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.9%
ROIC(5y)7.19%
ROICexc(3y)7.45%
ROICexc(5y)7.72%
ROICexgc(3y)13.9%
ROICexgc(5y)14.63%
ROCE(3y)9.03%
ROCE(5y)9.4%
ROICexcg growth 3Y-5.49%
ROICexcg growth 5Y-3.16%
ROICexc growth 3Y-5.02%
ROICexc growth 5Y-2.23%
OM growth 3Y-7.78%
OM growth 5Y-4.45%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 81.74% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.41% | ||
| Profit Quality | 60.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC7.93%
ROIC/WACC0.79
Cap/Depr(3y)77.74%
Cap/Depr(5y)81.03%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.76%
Profit Quality(3y)103.66%
Profit Quality(5y)128.32%
High Growth Momentum
Growth
EPS 1Y (TTM)0.03%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%12.5%
EPS Next Y5.39%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
EPS Next 5Y12.57%
Revenue 1Y (TTM)6.63%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%15.36%
Revenue Next Year11.04%
Revenue Next 2Y9.15%
Revenue Next 3Y8.84%
Revenue Next 5Y8.96%
EBIT growth 1Y-7.51%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year11.18%
EBIT Next 3Y10.33%
EBIT Next 5Y11.33%
FCF growth 1Y-67.58%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-61.22%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%