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 109 industry peers in the Health Care Providers & Services industry. While ELV is still in line with the averages on profitability rating, there are concerns on its financial health. ELV has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ELV has been profitable.
Each year in the past 5 years ELV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.51%, ELV belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
ELV has a better Return On Equity (14.66%) than 86.11% of its industry peers.
ELV's Return On Invested Capital of 6.61% is fine compared to the rest of the industry. ELV outperforms 70.37% of its industry peers.
ELV had an Average Return On Invested Capital over the past 3 years of 7.42%. This is in line with the industry average of 8.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 14.66% | ||
| ROIC | 6.61% |
ROA(3y)5.83%
ROA(5y)5.8%
ROE(3y)16.14%
ROE(5y)15.47%
ROIC(3y)7.42%
ROIC(5y)7.45%
1.3 Margins
ELV has a Profit Margin of 3.69%. This is in the better half of the industry: ELV outperforms 78.70% of its industry peers.
ELV's Profit Margin has declined in the last couple of years.
ELV's Operating Margin of 5.30% is fine compared to the rest of the industry. ELV outperforms 65.74% of its industry peers.
In the last couple of years the Operating Margin of ELV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| PM (TTM) | 3.69% | ||
| 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.
ELV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ELV has less shares outstanding
The debt/assets ratio for ELV has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ELV is 31.90, which is on the high side as it means it would take ELV, 31.90 years of fcf income to pay off all of its debts.
ELV has a Debt to FCF ratio of 31.90. This is comparable to the rest of the industry: ELV outperforms 53.70% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that ELV is somewhat dependend on debt financing.
ELV has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 31.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC8.12%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ELV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.20%.
The Earnings Per Share has been growing by 15.79% on average over the past years. This is quite good.
ELV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.20%.
Measured over the past years, ELV shows a quite strong growth in Revenue. The Revenue has been growing by 13.21% on average per year.
EPS 1Y (TTM)6.2%
EPS 3Y13.88%
EPS 5Y15.79%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)3.2%
Revenue growth 3Y12.03%
Revenue growth 5Y13.21%
Sales Q2Q%5.27%
3.2 Future
Based on estimates for the next years, ELV will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.47% on average per year.
ELV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.
EPS Next Y0.56%
EPS Next 2Y3.28%
EPS Next 3Y7.65%
EPS Next 5Y11.47%
Revenue Next Year3%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5Y6.94%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
ELV is valuated reasonably with a Price/Earnings ratio of 11.03.
ELV's Price/Earnings ratio is rather cheap when compared to the industry. ELV is cheaper than 89.81% of the companies in the same industry.
ELV is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.85, the valuation of ELV can be described as reasonable.
Based on the Price/Forward Earnings ratio, ELV is valued cheaper than 87.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. ELV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
ELV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.43 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ELV may justify a higher PE ratio.
PEG (NY)19.65
PEG (5Y)0.7
EPS Next 2Y3.28%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, ELV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.95, ELV pays a better dividend. On top of this ELV pays more dividend than 87.04% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.33, ELV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.38%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
23.08% of the earnings are spent on dividend by ELV. This is a low number and sustainable payout ratio.
The dividend of ELV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.08%
EPS Next 2Y3.28%
EPS Next 3Y7.65%
ELEVANCE HEALTH INC
NYSE:ELV (1/15/2025, 10:16:09 AM)
383.2
-9.96 (-2.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner Change-10.52%
Market Cap88.87B
Analysts79.29
Price Target519.76 (35.64%)
Short Float %1.57%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)14.38%
DP23.08%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.05%
Min EPS beat(2)-14.2%
Max EPS beat(2)0.1%
EPS beat(4)2
Avg EPS beat(4)-3.87%
Min EPS beat(4)-14.2%
Max EPS beat(4)0.1%
EPS beat(8)5
Avg EPS beat(8)-0.92%
EPS beat(12)8
Avg EPS beat(12)0.33%
EPS beat(16)11
Avg EPS beat(16)1.61%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)2.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)2.1%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.4%
PT rev (1m)-2.2%
PT rev (3m)-15.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.85 | ||
| P/S | 0.51 | ||
| P/FCF | 104.43 | ||
| P/OCF | 42.1 | ||
| P/B | 2.03 | ||
| P/tB | 11.88 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)34.75
EY9.07%
EPS(NY)35.31
Fwd EY9.22%
FCF(TTM)3.67
FCFY0.96%
OCF(TTM)9.1
OCFY2.38%
SpS750.32
BVpS188.75
TBVpS32.27
PEG (NY)19.65
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 14.66% | ||
| ROCE | 8.56% | ||
| ROIC | 6.61% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 12.9% | ||
| OM | 5.3% | ||
| PM (TTM) | 3.69% | ||
| GM | N/A | ||
| FCFM | 0.49% |
ROA(3y)5.83%
ROA(5y)5.8%
ROE(3y)16.14%
ROE(5y)15.47%
ROIC(3y)7.42%
ROIC(5y)7.45%
ROICexc(3y)7.94%
ROICexc(5y)7.99%
ROICexgc(3y)14.91%
ROICexgc(5y)15.28%
ROCE(3y)9.59%
ROCE(5y)9.63%
ROICexcg growth 3Y-2.87%
ROICexcg growth 5Y-1.87%
ROICexc growth 3Y-0.79%
ROICexc growth 5Y1.25%
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
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 31.9 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 88.79% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.83% | ||
| Profit Quality | 13.26% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.12%
ROIC/WACC0.81
Cap/Depr(3y)75.51%
Cap/Depr(5y)82.01%
Cap/Sales(3y)0.76%
Cap/Sales(5y)0.83%
Profit Quality(3y)118.39%
Profit Quality(5y)134.06%
High Growth Momentum
Growth
EPS 1Y (TTM)6.2%
EPS 3Y13.88%
EPS 5Y15.79%
EPS Q2Q%-6.9%
EPS Next Y0.56%
EPS Next 2Y3.28%
EPS Next 3Y7.65%
EPS Next 5Y11.47%
Revenue 1Y (TTM)3.2%
Revenue growth 3Y12.03%
Revenue growth 5Y13.21%
Sales Q2Q%5.27%
Revenue Next Year3%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5Y6.94%
EBIT growth 1Y-4.69%
EBIT growth 3Y7.19%
EBIT growth 5Y10.15%
EBIT Next Year10.39%
EBIT Next 3Y9.2%
EBIT Next 5Y8.89%
FCF growth 1Y-91.81%
FCF growth 3Y-11.22%
FCF growth 5Y20.9%
OCF growth 1Y-81.78%
OCF growth 3Y-8.97%
OCF growth 5Y16.07%