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 25 industry peers in the Health Care Providers & Services industry. UNH has an excellent profitability rating, but there are some minor concerns on its financial health. UNH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UNH had positive earnings in the past year.
UNH had a positive operating cash flow in the past year.
In the past 5 years UNH has always 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 (7.14%) than 88.00% of its industry peers.
Looking at the Return On Equity, with a value of 21.93%, UNH belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.68%, UNH belongs to the best of the industry, outperforming 84.00% 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 5.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROIC | 8.68% |
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
Looking at the Profit Margin, with a value of 5.39%, UNH belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
UNH's Profit Margin has declined in the last couple of years.
UNH's Operating Margin of 8.16% is fine compared to the rest of the industry. UNH outperforms 72.00% 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 | 8.16% | ||
| PM (TTM) | 5.39% | ||
| 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
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
UNH has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as UNH would need 3.31 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.31, UNH belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.71. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH's Debt to Equity ratio of 0.71 is fine compared to the rest of the industry. UNH outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.16%
2.3 Liquidity
UNH has a Current Ratio of 0.88. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
UNH has a Current ratio of 0.88. This is comparable to the rest of the industry: UNH outperforms 52.00% of its industry peers.
UNH has a Quick Ratio of 0.88. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
UNH has a Quick ratio of 0.88. This is comparable to the rest of the industry: UNH outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
UNH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
The Revenue has grown by 8.06% in the past year. This is quite good.
Measured over the past years, UNH shows a quite strong growth in Revenue. The Revenue has been growing by 10.57% on average per year.
EPS 1Y (TTM)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
3.2 Future
UNH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.37% yearly.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y-18.45%
EPS Next 2Y-2.94%
EPS Next 3Y2.77%
EPS Next 5Y8.37%
Revenue Next Year12.12%
Revenue Next 2Y9.24%
Revenue Next 3Y8.57%
Revenue Next 5Y8.02%
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 11.04 indicates a reasonable valuation of UNH.
Based on the Price/Earnings ratio, UNH is valued cheaper than 92.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. UNH is valued rather cheaply when compared to this.
UNH is valuated reasonably with a Price/Forward Earnings ratio of 11.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 72.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. UNH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit cheaper than 72.00% of the companies in the same industry.
UNH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
UNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y-2.94%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, UNH has a reasonable but not impressive dividend return.
In the last 3 months the price of UNH has falen by -47.07%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.78. UNH pays more dividend than 84.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, UNH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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
34.90% of the earnings are spent on dividend by UNH. This is a low number and sustainable payout ratio.
The dividend of UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.9%
EPS Next 2Y-2.94%
EPS Next 3Y2.77%
FRA:UNH (7/4/2025, 7:00:00 PM)
262.05
-1.6 (-0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.04%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap237.72B
Analysts77.5
Price Target340.29 (29.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend7
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-2.18%
Max EPS beat(2)0.29%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-2.18%
Max EPS beat(4)1.12%
EPS beat(8)7
Avg EPS beat(8)1.73%
EPS beat(12)11
Avg EPS beat(12)2.42%
EPS beat(16)15
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.04%
PT rev (1m)-31.41%
PT rev (3m)-45.51%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-32.41%
EPS NY rev (1m)-6.34%
EPS NY rev (3m)-24.18%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 11.74 | ||
| P/S | 0.68 | ||
| P/FCF | 11.41 | ||
| P/OCF | 9.93 | ||
| P/B | 2.78 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)23.73
EY9.06%
EPS(NY)22.32
Fwd EY8.52%
FCF(TTM)22.97
FCFY8.77%
OCF(TTM)26.39
OCFY10.07%
SpS383.66
BVpS94.32
TBVpS94.32
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROCE | 11.17% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.8% | ||
| ROICexgc | 37.81% | ||
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| GM | N/A | ||
| FCFM | 5.99% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)22.21%
ROE(5y)22.85%
ROIC(3y)10.14%
ROIC(5y)10.16%
ROICexc(3y)11.32%
ROICexc(5y)11.36%
ROICexgc(3y)32.46%
ROICexgc(5y)32.01%
ROCE(3y)13.1%
ROCE(5y)13.1%
ROICexcg growth 3Y-2.11%
ROICexcg growth 5Y-0.12%
ROICexc growth 3Y-2.38%
ROICexc growth 5Y-0.43%
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-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 87.77% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.94% | ||
| Profit Quality | 111.07% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC8.16%
ROIC/WACC1.06
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)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
EPS Next Y-18.45%
EPS Next 2Y-2.94%
EPS Next 3Y2.77%
EPS Next 5Y8.37%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.12%
Revenue Next 2Y9.24%
Revenue Next 3Y8.57%
Revenue Next 5Y8.02%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-3.21%
EBIT Next 3Y6.93%
EBIT Next 5Y8.55%
FCF growth 1Y-28.23%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-24.21%
OCF growth 3Y2.39%
OCF growth 5Y5.37%