ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
NYSE:ELV - New York Stock Exchange, Inc. - US0367521038 - Common Stock - Currency: USD
Overall ELV gets a fundamental rating of 5 out of 10. We evaluated ELV against 108 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ELV had positive earnings in the past year.
ELV had a positive operating cash flow in the past year.
In the past 5 years ELV has always been profitable.
In the past 5 years ELV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ELV (5.13%) is better than 79.44% of its industry peers.
The Return On Equity of ELV (14.47%) is better than 83.18% of its industry peers.
With a decent Return On Invested Capital value of 5.92%, ELV is doing good in the industry, outperforming 68.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ELV is in line with the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 14.47% | ||
| ROIC | 5.92% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.7%
ROIC(5y)7.07%
1.3 Margins
ELV has a Profit Margin of 3.38%. This is in the better half of the industry: ELV outperforms 72.90% of its industry peers.
In the last couple of years the Profit Margin of ELV has declined.
With a decent Operating Margin value of 5.03%, ELV is doing good in the industry, outperforming 63.55% of the companies in the same industry.
In the last couple of years the Operating Margin of ELV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.03% | ||
| PM (TTM) | 3.38% | ||
| GM | N/A |
OM growth 3Y-8.69%
OM growth 5Y-5.02%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 is higher compared to a year ago.
2.2 Solvency
ELV has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as ELV would need 6.96 years to pay back of all of its debts.
ELV's Debt to FCF ratio of 6.96 is fine compared to the rest of the industry. ELV outperforms 67.29% of its industry peers.
ELV has a Debt/Equity ratio of 0.72. This is a neutral value indicating ELV is somewhat dependend on debt financing.
ELV has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.71
WACC8.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ELV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.42%.
ELV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.17% yearly.
ELV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
The Revenue has been growing by 11.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.42%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-31.67%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%5.97%
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 14.21% yearly.
ELV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.91% yearly.
EPS Next Y4.61%
EPS Next 2Y9.38%
EPS Next 3Y12.04%
EPS Next 5Y14.21%
Revenue Next Year9.97%
Revenue Next 2Y8.62%
Revenue Next 3Y8.91%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.84 indicates a reasonable valuation of ELV.
88.78% of the companies in the same industry are more expensive than ELV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.30. ELV is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.32, which indicates a very decent valuation of ELV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 86.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.06. ELV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
ELV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ELV is cheaper than 73.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELV indicates a somewhat cheap valuation: ELV is cheaper than 73.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.19 | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ELV's earnings are expected to grow with 12.04% in the coming years.
PEG (NY)2.57
PEG (5Y)1.06
EPS Next 2Y9.38%
EPS Next 3Y12.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, ELV has a reasonable but not impressive dividend return.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.95. ELV pays more dividend than 86.92% of the companies in the same industry.
ELV's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of ELV grows each year by 15.12%, which is quite nice.
ELV has paid a dividend for at least 10 years, which is 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)15.12%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
ELV pays out 25.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of ELV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.22%
EPS Next 2Y9.38%
EPS Next 3Y12.04%
390.5
-1.21 (-0.31%)
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-1.88%
Market Cap90.56B
Analysts77.86
Price Target504.77 (29.26%)
Short Float %1.22%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend6.49
Dividend Growth(5Y)15.12%
DP25.22%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.02%
Min EPS beat(2)-14.2%
Max EPS beat(2)0.17%
EPS beat(4)3
Avg EPS beat(4)-3.47%
Min EPS beat(4)-14.2%
Max EPS beat(4)0.17%
EPS beat(8)6
Avg EPS beat(8)-0.87%
EPS beat(12)9
Avg EPS beat(12)0.38%
EPS beat(16)12
Avg EPS beat(16)1.63%
Revenue beat(2)1
Avg Revenue beat(2)0.69%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)2.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)2.1%
Revenue beat(8)3
Avg Revenue beat(8)0.42%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)8
Avg Revenue beat(16)0.22%
PT rev (1m)-2.88%
PT rev (3m)-10.36%
EPS NQ rev (1m)3.29%
EPS NQ rev (3m)-8.91%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)2.18%
Revenue NY rev (3m)2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.51 | ||
| P/FCF | 20.19 | ||
| P/OCF | 15.77 | ||
| P/B | 2.19 | ||
| P/tB | 95.94 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)32.97
EY8.44%
EPS(NY)34.49
Fwd EY8.83%
FCF(TTM)19.34
FCFY4.95%
OCF(TTM)24.76
OCFY6.34%
SpS762.37
BVpS178.14
TBVpS4.07
PEG (NY)2.57
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 14.47% | ||
| ROCE | 7.75% | ||
| ROIC | 5.92% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 11.45% | ||
| OM | 5.03% | ||
| PM (TTM) | 3.38% | ||
| GM | N/A | ||
| FCFM | 2.54% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.7%
ROIC(5y)7.07%
ROICexc(3y)7.22%
ROICexc(5y)7.58%
ROICexgc(3y)13.28%
ROICexgc(5y)14.25%
ROCE(3y)8.77%
ROCE(5y)9.24%
ROICexcg growth 3Y-10.15%
ROICexcg growth 5Y-6.05%
ROICexc growth 3Y-8.21%
ROICexc growth 5Y-4.22%
OM growth 3Y-8.69%
OM growth 5Y-5.02%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 90.17% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.85% | ||
| Profit Quality | 75.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC8.28%
ROIC/WACC0.71
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)-0.42%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-31.67%
EPS Next Y4.61%
EPS Next 2Y9.38%
EPS Next 3Y12.04%
EPS Next 5Y14.21%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%5.97%
Revenue Next Year9.97%
Revenue Next 2Y8.62%
Revenue Next 3Y8.91%
Revenue Next 5YN/A
EBIT growth 1Y-6.41%
EBIT growth 3Y-0.98%
EBIT growth 5Y5.56%
EBIT Next Year10.49%
EBIT Next 3Y11.08%
EBIT Next 5Y9.84%
FCF growth 1Y-33.69%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-28.77%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%