UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
326.28 USD
+7.23 (+2.27%)
327.05 USD
+0.77 (+0.24%)
Overall UNH gets a fundamental rating of 5 out of 10. We evaluated UNH against 101 industry peers in the Health Care Providers & Services industry. UNH has an average financial health and profitability rating. 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.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.58%, UNH belongs to the top of the industry, outperforming 80.20% of the companies in the same industry.
UNH's Return On Equity of 18.36% is amongst the best of the industry. UNH outperforms 86.14% of its industry peers.
The Return On Invested Capital of UNH (7.55%) is better than 71.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNH is in line with the industry average of 9.27%.
| 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
UNH's Profit Margin of 4.04% is fine compared to the rest of the industry. UNH outperforms 74.26% of its industry peers.
In the last couple of years the Profit Margin of UNH has declined.
UNH has a Operating Margin of 6.06%. This is in the better half of the industry: UNH outperforms 66.34% 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 | 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
UNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UNH has less shares outstanding than it did 1 year ago.
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 an Altman-Z score of 2.87. 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.
The Altman-Z score of UNH (2.87) is better than 61.39% of its industry peers.
UNH has a debt to FCF ratio of 4.61. This is a neutral value as UNH would need 4.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.61, UNH is doing good in the industry, outperforming 67.33% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.76. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio of 0.76. This is comparable to the rest of the industry: UNH outperforms 48.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.88
WACC8.59%
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.
With a Current ratio value of 0.95, UNH is not doing good in the industry: 75.25% of the companies in the same industry are doing better.
UNH has a Quick 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 Quick ratio (0.95) than 71.29% of its industry peers.
| 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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.48%.
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)-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-41.12%
EPS Next 2Y-20.11%
EPS Next 3Y-9.12%
EPS Next 5Y2.72%
Revenue Next Year11.61%
Revenue Next 2Y6.63%
Revenue Next 3Y6.02%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.53, the valuation of UNH can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 83.17% of the companies listed in the same industry.
UNH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive valuation of UNH.
UNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 65.35% of the companies in the same industry.
UNH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
UNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNH is cheaper than 66.34% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 71.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The decent profitability rating of UNH may justify a higher PE ratio.
UNH's earnings are expected to decrease with -9.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-20.11%
EPS Next 3Y-9.12%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.60. UNH pays more dividend than 94.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
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-20.11%
EPS Next 3Y-9.12%
326.28
+7.23 (+2.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change-4%
Ins Owners0.17%
Ins Owner Change0.39%
Market Cap295.50B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts75.29
Price Target397.41 (21.8%)
Short Float %1.4%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)13.95%
PT rev (3m)19.01%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 18.31 | ||
| P/S | 0.68 | ||
| P/FCF | 17 | ||
| P/OCF | 14.1 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.16 |
EPS(TTM)21.01
EY6.44%
EPS(NY)17.82
Fwd EY5.46%
FCF(TTM)19.19
FCFY5.88%
OCF(TTM)23.15
OCFY7.09%
SpS480.48
BVpS105.76
TBVpS-41.23
PEG (NY)N/A
PEG (5Y)1.19
Graham Number223.6
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 | 2.87 |
F-Score9
WACC8.59%
ROIC/WACC0.88
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-41.12%
EPS Next 2Y-20.11%
EPS Next 3Y-9.12%
EPS Next 5Y2.72%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.24%
Revenue Next Year11.61%
Revenue Next 2Y6.63%
Revenue Next 3Y6.02%
Revenue Next 5Y6.13%
EBIT growth 1Y-18.15%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-25.01%
EBIT Next 3Y-3.56%
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 15.53 and the Price/Book (PB) ratio is 3.08.
What is the financial health of UNITEDHEALTH GROUP INC (UNH) stock?
The financial health rating of UNITEDHEALTH GROUP INC (UNH) is 4 / 10.