ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
USA - NYSE:ELV - US0367521038 - Common Stock
315.77 USD
+7.29 (+2.36%)
315.77 USD
0 (0%)
ELV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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. ELV also has an excellent dividend rating.
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
ELV has a better Return On Assets (4.40%) than 75.25% of its industry peers.
Looking at the Return On Equity, with a value of 12.26%, ELV is in the better half of the industry, outperforming 77.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.90%, ELV is in the better half of the industry, outperforming 62.38% 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 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 12.26% | ||
| ROIC | 5.9% |
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
ELV has a Profit Margin of 2.83%. This is in the better half of the industry: ELV outperforms 65.35% of its industry peers.
In the last couple of years the Profit Margin of ELV has declined.
With a Operating Margin value of 4.60%, ELV perfoms like the industry average, outperforming 59.41% of the companies in the same industry.
ELV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 2.83% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELV is destroying value.
Compared to 1 year ago, ELV has less shares outstanding
Compared to 5 years ago, ELV has less shares outstanding
ELV has a worse debt/assets ratio than last year.
2.2 Solvency
ELV has a debt to FCF ratio of 5.70. This is a neutral value as ELV would need 5.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.70, ELV is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
ELV has a Debt/Equity ratio of 0.65. This is a neutral value indicating ELV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, ELV is in line with its industry, outperforming 54.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.73
WACC8.13%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ELV have decreased by -6.64% in the last 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.
Looking at the last year, ELV shows a quite strong growth in Revenue. The Revenue has grown by 10.21% in the last year.
ELV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.14% yearly.
EPS 1Y (TTM)-6.64%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-12.65%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
ELV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.96% yearly.
EPS Next Y-8.42%
EPS Next 2Y-1.7%
EPS Next 3Y3.63%
EPS Next 5Y8.79%
Revenue Next Year12.33%
Revenue Next 2Y8.83%
Revenue Next 3Y7.8%
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 decreasing.
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 9.56 indicates a reasonable valuation of ELV.
Based on the Price/Earnings ratio, ELV is valued cheaper than 92.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of ELV to the average of the S&P500 Index (27.41), we can say ELV is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.91, the valuation of ELV can be described as very reasonable.
86.14% of the companies in the same industry are more expensive than ELV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ELV to the average of the S&P500 Index (22.88), we can say ELV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
ELV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ELV is cheaper than 78.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ELV is valued cheaper than 81.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-1.7%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 2.17%.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.43. ELV pays more dividend than 91.09% of the companies in the same industry.
ELV's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
28.40% 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.
DP28.4%
EPS Next 2Y-1.7%
EPS Next 3Y3.63%
315.77
+7.29 (+2.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change2.81%
Market Cap71.11B
Analysts76.43
Price Target373.55 (18.3%)
Short Float %1.2%
Short Ratio1.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend6.55
Dividend Growth(5Y)15.34%
DP28.4%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.93%
Min EPS beat(2)-2.26%
Max EPS beat(2)4.12%
EPS beat(4)2
Avg EPS beat(4)-3.04%
Min EPS beat(4)-14.2%
Max EPS beat(4)4.12%
EPS beat(8)5
Avg EPS beat(8)-1%
EPS beat(12)8
Avg EPS beat(12)-0.08%
EPS beat(16)11
Avg EPS beat(16)0.72%
Revenue beat(2)2
Avg Revenue beat(2)2.87%
Min Revenue beat(2)1.45%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)4.3%
Revenue beat(8)3
Avg Revenue beat(8)0.42%
Revenue beat(12)6
Avg Revenue beat(12)0.84%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)-2.75%
PT rev (3m)-26.18%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-42.72%
EPS NY rev (1m)-13.1%
EPS NY rev (3m)-13.15%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.38 | ||
| P/FCF | 13.44 | ||
| P/OCF | 11.09 | ||
| P/B | 1.63 | ||
| P/tB | 18.4 | ||
| EV/EBITDA | 8.91 |
EPS(TTM)33.02
EY10.46%
EPS(NY)31.86
Fwd EY10.09%
FCF(TTM)23.5
FCFY7.44%
OCF(TTM)28.46
OCFY9.01%
SpS840.46
BVpS194.16
TBVpS17.16
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 12.26% | ||
| ROCE | 7.72% | ||
| ROIC | 5.9% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 11.77% | ||
| OM | 4.6% | ||
| PM (TTM) | 2.83% | ||
| GM | N/A | ||
| FCFM | 2.8% |
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-Score5
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 75.47% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.96% | ||
| Profit Quality | 98.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.13%
ROIC/WACC0.73
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)-6.64%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-12.65%
EPS Next Y-8.42%
EPS Next 2Y-1.7%
EPS Next 3Y3.63%
EPS Next 5Y8.79%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
Revenue Next Year12.33%
Revenue Next 2Y8.83%
Revenue Next 3Y7.8%
Revenue Next 5Y8.96%
EBIT growth 1Y-14.33%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year-2.13%
EBIT Next 3Y3.18%
EBIT Next 5Y8.53%
FCF growth 1Y-49.94%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-45.8%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%