UNITEDHEALTH GROUP INC (UNH.DE) Stock Fundamental Analysis
FRA:UNH - Deutsche Boerse Ag - US91324P1021 - Common Stock - Currency: EUR
UNH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Health Care Providers & Services industry. UNH has only an average score on both its financial health and profitability. UNH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
UNH had positive earnings in the past year.
In the past year UNH had a positive cash flow from operations.
UNH had positive earnings in each of the past 5 years.
UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.83%, UNH belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
With an excellent Return On Equity value of 14.66%, UNH belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
UNH has a Return On Invested Capital of 8.54%. This is amongst the best in the industry. UNH outperforms 86.96% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 9.78%. This is above the industry average of 5.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 14.66% | ||
| ROIC | 8.54% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)21.92%
ROE(5y)22.67%
ROIC(3y)9.78%
ROIC(5y)9.94%
1.3 Margins
The Profit Margin of UNH (3.60%) is better than 73.91% of its industry peers.
In the last couple of years the Profit Margin of UNH has declined.
The Operating Margin of UNH (8.07%) is better than 69.57% of its industry peers.
In the last couple of years the Operating Margin of UNH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.07% | ||
| PM (TTM) | 3.6% | ||
| GM | N/A |
OM growth 3Y-1.09%
OM growth 5Y-0.16%
PM growth 3Y-15.71%
PM growth 5Y-8.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNH is still creating some value.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
UNH has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as UNH would need 3.75 years to pay back of all of its debts.
The Debt to FCF ratio of UNH (3.75) is better than 86.96% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that UNH is somewhat dependend on debt financing.
The Debt to Equity ratio of UNH (0.74) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC8.28%
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 grown by an nice 11.15% over the past year.
Measured over the past years, UNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
UNH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.71%.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
EPS 1Y (TTM)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%6.76%
3.2 Future
Based on estimates for the next years, UNH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.21% on average per year.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y7.55%
EPS Next 2Y10.09%
EPS Next 3Y11.25%
EPS Next 5Y12.21%
Revenue Next Year12.25%
Revenue Next 2Y10.09%
Revenue Next 3Y9.45%
Revenue Next 5Y8.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
A Price/Earnings ratio of 17.53 indicates a rather expensive valuation of UNH.
UNH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. UNH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of UNH can be described as correct.
UNH's Price/Forward Earnings ratio is in line with the industry average.
UNH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNH indicates a slightly more expensive valuation: UNH is more expensive than 78.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UNH is valued a bit more expensive than the industry average as 78.26% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.85 | ||
| EV/EBITDA | 13.71 |
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 UNH may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.34
EPS Next 2Y10.09%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
UNH's Dividend Yield is a higher than the industry average which is at 2.93.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
On average, the dividend of UNH grows each year by 14.66%, which is quite nice.
Dividend Growth(5Y)14.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
52.29% of the earnings are spent on dividend by UNH. This is a bit on the high side, but may be sustainable.
The dividend of UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.29%
EPS Next 2Y10.09%
EPS Next 3Y11.25%
FRA:UNH (3/10/2025, 10:47:32 AM)
450.825
-3.23 (-0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap412.37B
Analysts84.71
Price Target624.49 (38.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend7.52
Dividend Growth(5Y)14.66%
DP52.29%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.71%
Min EPS beat(2)0.29%
Max EPS beat(2)1.12%
EPS beat(4)4
Avg EPS beat(4)2.42%
Min EPS beat(4)0.29%
Max EPS beat(4)7.17%
EPS beat(8)8
Avg EPS beat(8)2.14%
EPS beat(12)12
Avg EPS beat(12)2.7%
EPS beat(16)16
Avg EPS beat(16)3.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)0.55%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)10
Avg Revenue beat(16)0.24%
PT rev (1m)0.6%
PT rev (3m)1.62%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)4.29%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 16.3 | ||
| P/S | 1.12 | ||
| P/FCF | 21.85 | ||
| P/OCF | 18.67 | ||
| P/B | 4.56 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 13.71 |
EPS(TTM)25.72
EY5.71%
EPS(NY)27.66
Fwd EY6.14%
FCF(TTM)20.63
FCFY4.58%
OCF(TTM)24.15
OCFY5.36%
SpS403.06
BVpS98.95
TBVpS98.95
PEG (NY)2.32
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 14.66% | ||
| ROCE | 10.99% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.48% | ||
| ROICexgc | 35.76% | ||
| OM | 8.07% | ||
| PM (TTM) | 3.6% | ||
| GM | N/A | ||
| FCFM | 5.12% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)21.92%
ROE(5y)22.67%
ROIC(3y)9.78%
ROIC(5y)9.94%
ROICexc(3y)10.92%
ROICexc(5y)11.12%
ROICexgc(3y)34.63%
ROICexgc(5y)33.32%
ROCE(3y)12.62%
ROCE(5y)12.81%
ROICexcg growth 3Y4.68%
ROICexcg growth 5Y3.98%
ROICexc growth 3Y-6.12%
ROICexc growth 5Y-2.74%
OM growth 3Y-1.09%
OM growth 5Y-0.16%
PM growth 3Y-15.71%
PM growth 5Y-8.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 85.36% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.92% | ||
| Profit Quality | 142.22% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.28%
ROIC/WACC1.03
Cap/Depr(3y)84.34%
Cap/Depr(5y)80.61%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.86%
Profit Quality(3y)124.43%
Profit Quality(5y)123.8%
High Growth Momentum
Growth
EPS 1Y (TTM)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
EPS Next Y7.55%
EPS Next 2Y10.09%
EPS Next 3Y11.25%
EPS Next 5Y12.21%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%6.76%
Revenue Next Year12.25%
Revenue Next 2Y10.09%
Revenue Next 3Y9.45%
Revenue Next 5Y8.32%
EBIT growth 1Y-0.22%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year18.05%
EBIT Next 3Y12.79%
EBIT Next 5Y11.39%
FCF growth 1Y-20.23%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-17.49%
OCF growth 3Y2.39%
OCF growth 5Y5.37%