UNITEDHEALTH GROUP INC (UNH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UNH - US91324P1021 - Common Stock
300.85 EUR
+4.85 (+1.64%)
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 30 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.
- Each year in the past 5 years UNH has been profitable.
- UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- UNH has a better Return On Assets (5.58%) than 86.67% of its industry peers.
- UNH has a Return On Equity of 18.36%. This is amongst the best in the industry. UNH outperforms 90.00% of its industry peers.
- With a decent Return On Invested Capital value of 7.55%, UNH is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for UNH is above the industry average of 6.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 18.36% | ||
| ROIC | 7.55% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)22.21%
ROE(5y)22.85%
ROIC(3y)10.14%
ROIC(5y)10.16%
1.3 Margins
- The Profit Margin of UNH (4.04%) is better than 70.00% of its industry peers.
- In the last couple of years the Profit Margin of UNH has declined.
- Looking at the Operating Margin, with a value of 6.06%, UNH is in line with its industry, outperforming 60.00% of the companies in the same industry.
- 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 | 6.06% | ||
| PM (TTM) | 4.04% | ||
| 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.
- Compared to 1 year ago, UNH has less shares outstanding
- Compared to 5 years ago, UNH has less shares outstanding
- UNH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.95 indicates that UNH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of UNH (2.95) is better than 80.00% of its industry peers.
- The Debt to FCF ratio of UNH is 4.61, which is a neutral value as it means it would take UNH, 4.61 years of fcf income to pay off all of its debts.
- UNH has a Debt to FCF ratio of 4.61. This is amongst the best in the industry. UNH outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that UNH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.76, UNH is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.87
WACC8.66%
2.3 Liquidity
- UNH has a Current Ratio of 0.95. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.95, UNH is in line with its industry, outperforming 56.67% of the companies in the same industry.
- A Quick Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.95, UNH is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- UNH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.96%.
- UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
- Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 10.48% in the last year.
- UNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.57% yearly.
EPS 1Y (TTM)-22.96%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-59.16%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.24%
3.2 Future
- UNH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.69% yearly.
- Based on estimates for the next years, UNH will show a small growth in Revenue. The Revenue will grow by 6.13% on average per year.
EPS Next Y-40.97%
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
EPS Next 5Y2.69%
Revenue Next Year11.72%
Revenue Next 2Y6.48%
Revenue Next 3Y6.03%
Revenue Next 5Y6.13%
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.
- 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 16.76 indicates a correct valuation of UNH.
- The rest of the industry has a similar Price/Earnings ratio as UNH.
- The average S&P500 Price/Earnings ratio is at 27.32. UNH is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.65, the valuation of UNH can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, UNH is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of UNH to the average of the S&P500 Index (24.32), we can say UNH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
- UNH has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as UNH's earnings are expected to decrease with -8.96% in the coming years.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
5. Dividend
5.1 Amount
- UNH has a Yearly Dividend Yield of 2.61%.
- UNH's Dividend Yield is a higher than the industry average which is at 1.73.
- Compared to an average S&P500 Dividend Yield of 1.83, UNH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
- On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
Dividend Growth(5Y)14.73%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 44.61% of the earnings are spent on dividend by UNH. This is a bit on the high side, but may be sustainable.
- UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.61%
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
UNITEDHEALTH GROUP INC / UNH.DE FAQ
Can you provide the ChartMill fundamental rating for UNITEDHEALTH GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to UNH.DE.
Can you provide the valuation status for UNITEDHEALTH GROUP INC?
ChartMill assigns a valuation rating of 2 / 10 to UNITEDHEALTH GROUP INC (UNH.DE). This can be considered as Overvalued.
Can you provide the profitability details for UNITEDHEALTH GROUP INC?
UNITEDHEALTH GROUP INC (UNH.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of UNITEDHEALTH GROUP INC (UNH.DE) stock?
The Price/Earnings (PE) ratio for UNITEDHEALTH GROUP INC (UNH.DE) is 16.76 and the Price/Book (PB) ratio is 3.33.
Is the dividend of UNITEDHEALTH GROUP INC sustainable?
The dividend rating of UNITEDHEALTH GROUP INC (UNH.DE) is 5 / 10 and the dividend payout ratio is 44.61%.