ELEVANCE HEALTH INC (ELV)
US0367521038 - Common Stock
Overall ELV gets a fundamental rating of 5 out of 10. We evaluated ELV against 113 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
In the past year ELV was profitable.
ELV had a positive operating cash flow in the past year.
ELV had positive earnings in each of the past 5 years.
Each year in the past 5 years ELV had a positive operating cash flow.
1.2 Ratios
ELV has a better Return On Assets (5.51%) than 84.07% of its industry peers.
Looking at the Return On Equity, with a value of 14.66%, ELV belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
ELV has a Return On Invested Capital of 6.61%. This is in the better half of the industry: ELV outperforms 70.80% 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 8.10%.
| 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 better Profit Margin (3.69%) than 78.76% of its industry peers.
In the last couple of years the Profit Margin of ELV has declined.
The Operating Margin of ELV (5.30%) is better than 65.49% of its industry peers.
ELV's Operating Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELV is destroying value.
The number of shares outstanding for ELV has been reduced compared to 1 year ago.
The number of shares outstanding for ELV has been reduced compared to 5 years ago.
The debt/assets ratio for ELV has been reduced compared to a year ago.
2.2 Solvency
ELV has a debt to FCF ratio of 31.90. This is a negative value and a sign of low solvency as ELV would need 31.90 years to pay back of all of its debts.
The Debt to FCF ratio of ELV (31.90) is comparable to the rest of the industry.
ELV has a Debt/Equity ratio of 0.57. This is a neutral value indicating 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/WACC0.84
WACC7.86%
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 6.20% over the past year.
The Earnings Per Share has been growing by 15.79% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.20% in the past year.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
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
ELV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.01% yearly.
ELV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y0.56%
EPS Next 2Y3.26%
EPS Next 3Y7.59%
EPS Next 5Y12.01%
Revenue Next Year2.85%
Revenue Next 2Y5.24%
Revenue Next 3Y6.06%
Revenue Next 5Y7.05%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 11.58, which indicates a very decent valuation of ELV.
90.27% of the companies in the same industry are more expensive than ELV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.20, ELV is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.40, the valuation of ELV can be described as very reasonable.
85.84% of the companies in the same industry are more expensive than ELV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, ELV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
76.99% of the companies in the same industry are more expensive than ELV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.71 | ||
| EV/EBITDA | 10.57 |
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.
The decent profitability rating of ELV may justify a higher PE ratio.
PEG (NY)20.86
PEG (5Y)0.73
EPS Next 2Y3.26%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ELV has falen by -26.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ELV's Dividend Yield is rather good when compared to the industry average which is at 3.16. ELV pays more dividend than 85.84% of the companies in the same industry.
ELV's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of ELV grows each year by 14.38%, which is quite nice.
ELV has been paying a dividend for at least 10 years, so it has a reliable track record.
ELV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.38%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
23.08% 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.
DP23.08%
EPS Next 2Y3.26%
EPS Next 3Y7.59%
ELEVANCE HEALTH INC
NYSE:ELV (11/22/2024, 8:04:00 PM)
After market: 402 -0.55 (-0.14%)402.55
-1.05 (-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 Cap93.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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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 | 11.58 | ||
| Fwd PE | 11.4 | ||
| 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)20.86
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 14.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.3% | ||
| PM (TTM) | 3.69% | ||
| 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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| 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)6.2%
EPS 3Y13.88%
EPS 5Y
EPS Q2Q%
EPS Next Y0.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.2%
Revenue growth 3Y12.03%
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