UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
327.58 USD
+2.78 (+0.86%)
327 USD
-0.58 (-0.18%)
UNH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. UNH has an average financial health and profitability rating. UNH has a decent growth rate and is not valued too expensively. Finally UNH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNH was profitable.
UNH had a positive operating cash flow in the past year.
In the past 5 years UNH has always been profitable.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
UNH has a better Return On Assets (5.58%) than 78.43% of its industry peers.
Looking at the Return On Equity, with a value of 18.36%, UNH belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
UNH has a Return On Invested Capital of 7.55%. This is in the better half of the industry: UNH outperforms 70.59% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.14%. This is in line with the industry average of 9.61%.
| 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 74.51% of its industry peers.
UNH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.06%, UNH is in the better half of the industry, outperforming 68.63% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNH is creating some value.
Compared to 1 year ago, UNH has less shares outstanding
UNH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
UNH has an Altman-Z score of 2.89. This is not the best score and indicates that UNH is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.89, UNH is doing good in the industry, outperforming 61.76% of the companies in the same industry.
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.
The Debt to FCF ratio of UNH (4.61) is better than 67.65% of its industry peers.
UNH has a Debt/Equity ratio of 0.76. This is a neutral value indicating UNH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, UNH perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.87
WACC8.68%
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.
UNH has a worse Current ratio (0.95) than 73.53% of its industry peers.
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 doing worse than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for UNH have decreased strongly by -22.96% in the last year.
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.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
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
Based on estimates for the next years, UNH will show a small growth in Earnings Per Share. The EPS will grow by 2.72% on average per year.
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-41.01%
EPS Next 2Y-19.95%
EPS Next 3Y-8.92%
EPS Next 5Y2.72%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
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
UNH is valuated correctly with a Price/Earnings ratio of 15.59.
Based on the Price/Earnings ratio, UNH is valued cheaply inside the industry as 81.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (26.59), we can say UNH is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive valuation of UNH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 65.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. UNH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
68.63% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UNH is valued a bit cheaper than the industry average as 71.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.08 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
UNH has a very decent profitability rating, which may justify a higher PE ratio.
UNH's earnings are expected to decrease with -8.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-19.95%
EPS Next 3Y-8.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, UNH has a reasonable but not impressive dividend return.
UNH's Dividend Yield is rather good when compared to the industry average which is at 0.58. UNH pays more dividend than 96.08% of the companies in the same industry.
UNH's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
UNH has paid a dividend for at least 10 years, which is a reliable track record.
UNH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.73%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
UNH pays out 44.61% of its income as dividend. 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.
DP44.61%
EPS Next 2Y-19.95%
EPS Next 3Y-8.92%
327.58
+2.78 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.6%
Inst Owner Change-3.98%
Ins Owners0.17%
Ins Owner Change0.41%
Market Cap296.74B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts74.55
Price TargetN/A
Short Float %1.44%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP44.61%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.22%
Min EPS beat(2)-9.92%
Max EPS beat(2)3.48%
EPS beat(4)2
Avg EPS beat(4)-2.08%
Min EPS beat(4)-9.92%
Max EPS beat(4)3.48%
EPS beat(8)6
Avg EPS beat(8)0.38%
EPS beat(12)10
Avg EPS beat(12)0.9%
EPS beat(16)14
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)6.43%
PT rev (3m)16.27%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 18.31 | ||
| P/S | 0.68 | ||
| P/FCF | 17.08 | ||
| P/OCF | 14.15 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.41 |
EPS(TTM)21.01
EY6.41%
EPS(NY)17.89
Fwd EY5.46%
FCF(TTM)19.18
FCFY5.86%
OCF(TTM)23.14
OCFY7.06%
SpS480.39
BVpS105.74
TBVpS-41.22
PEG (NY)N/A
PEG (5Y)1.19
Graham Number223.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 18.36% | ||
| ROCE | 9.71% | ||
| ROIC | 7.55% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 23.23% | ||
| OM | 6.06% | ||
| PM (TTM) | 4.04% | ||
| GM | N/A | ||
| FCFM | 3.99% |
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%
ROICexgc growth 3Y-2.11%
ROICexgc 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-Score9
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 83.69% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.42% | ||
| Profit Quality | 98.8% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.89 |
F-Score9
WACC8.68%
ROIC/WACC0.87
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)-22.96%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-59.16%
EPS Next Y-41.01%
EPS Next 2Y-19.95%
EPS Next 3Y-8.92%
EPS Next 5Y2.72%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.24%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
Revenue Next 3Y6.03%
Revenue Next 5Y6.13%
EBIT growth 1Y-18.15%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-24.66%
EBIT Next 3Y-3.48%
EBIT Next 5Y4.13%
FCF growth 1Y-34.26%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-29.48%
OCF growth 3Y2.39%
OCF growth 5Y5.37%
UNITEDHEALTH GROUP INC / UNH FAQ
Can you provide the ChartMill fundamental rating for UNITEDHEALTH GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to UNH.
What is the valuation status for UNH stock?
ChartMill assigns a valuation rating of 5 / 10 to UNITEDHEALTH GROUP INC (UNH). This can be considered as Fairly Valued.
Can you provide the profitability details for UNITEDHEALTH GROUP INC?
UNITEDHEALTH GROUP INC (UNH) has a profitability rating of 6 / 10.
What is the valuation of UNITEDHEALTH GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UNITEDHEALTH GROUP INC (UNH) is 15.59 and the Price/Book (PB) ratio is 3.1.
What is the financial health of UNITEDHEALTH GROUP INC (UNH) stock?
The financial health rating of UNITEDHEALTH GROUP INC (UNH) is 4 / 10.