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UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis

NYSE:UNH - New York Stock Exchange, Inc. - US91324P1021 - Common Stock

524.99  +15.23 (+2.99%)

After market: 523.72 -1.27 (-0.24%)

Fundamental Rating

5

Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 108 industry peers in the Health Care Providers & Services industry. UNH scores excellent on profitability, but there are concerns on its financial health. UNH is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
Of the past 5 years UNH 4 years were profitable.
In the past 5 years UNH always reported a positive cash flow from operatings.
UNH Yearly Net Income VS EBIT VS OCF VS FCFUNH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

1.2 Ratios

UNH's Return On Assets of 4.78% is fine compared to the rest of the industry. UNH outperforms 79.44% of its industry peers.
UNH has a Return On Equity of 14.33%. This is amongst the best in the industry. UNH outperforms 84.11% of its industry peers.
UNH has a better Return On Invested Capital (8.60%) than 80.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNH is above the industry average of 8.27%.
Industry RankSector Rank
ROA 4.78%
ROE 14.33%
ROIC 8.6%
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%
UNH Yearly ROA, ROE, ROICUNH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

UNH has a Profit Margin of 3.63%. This is in the better half of the industry: UNH outperforms 77.57% of its industry peers.
In the last couple of years the Profit Margin of UNH has grown nicely.
UNH's Operating Margin of 8.18% is fine compared to the rest of the industry. UNH outperforms 77.57% of its industry peers.
In the last couple of years the Operating Margin of UNH has grown nicely.
Industry RankSector Rank
OM 8.18%
PM (TTM) 3.63%
GM N/A
OM growth 3Y-0.02%
OM growth 5Y2.58%
PM growth 3Y0.18%
PM growth 5Y2.6%
GM growth 3YN/A
GM growth 5YN/A
UNH Yearly Profit, Operating, Gross MarginsUNH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

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3

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.
Compared to 1 year ago, UNH has less shares outstanding
Compared to 5 years ago, UNH has less shares outstanding
Compared to 1 year ago, UNH has a worse debt to assets ratio.
UNH Yearly Shares OutstandingUNH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
UNH Yearly Total Debt VS Total AssetsUNH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

The Debt to FCF ratio of UNH is 6.07, which is on the high side as it means it would take UNH, 6.07 years of fcf income to pay off all of its debts.
UNH has a Debt to FCF ratio of 6.07. This is in the better half of the industry: UNH outperforms 73.83% of its industry peers.
UNH has a Debt/Equity ratio of 0.74. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.07
Altman-Z N/A
ROIC/WACC0.99
WACC8.67%
UNH Yearly LT Debt VS Equity VS FCFUNH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.3 Liquidity

UNH has a Current Ratio of 0.66. 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's Current ratio of 0.66 is on the low side compared to the rest of the industry. UNH is outperformed by 86.92% of its industry peers.
A Quick Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, UNH is doing worse than 81.31% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66
UNH Yearly Current Assets VS Current LiabilitesUNH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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4

3. Growth

3.1 Past

UNH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.15%, which is quite good.
UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
EPS 1Y (TTM)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.76%

3.2 Future

The Earnings Per Share is expected to grow by 12.22% on average over the next years. This is quite good.
UNH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y8.02%
EPS Next 2Y10.4%
EPS Next 3Y11.5%
EPS Next 5Y12.22%
Revenue Next Year11.68%
Revenue Next 2Y9.55%
Revenue Next 3Y9.47%
Revenue Next 5Y8.32%

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 stable.
UNH Yearly Revenue VS EstimatesUNH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200B 400B 600B
UNH Yearly EPS VS EstimatesUNH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

UNH is valuated rather expensively with a Price/Earnings ratio of 18.80.
UNH's Price/Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 72.90% of the companies in the same industry.
UNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 17.41, the valuation of UNH can be described as rather expensive.
68.22% of the companies in the same industry are more expensive than UNH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UNH to the average of the S&P500 Index (24.44), we can say UNH is valued slightly cheaper.
Industry RankSector Rank
PE 18.8
Fwd PE 17.41
UNH Price Earnings VS Forward Price EarningsUNH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit cheaper than the industry average as 61.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UNH is valued a bit cheaper than 65.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 37.62
EV/EBITDA 14.07
UNH Per share dataUNH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)1.44
EPS Next 2Y10.4%
EPS Next 3Y11.5%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.65%, UNH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.87, UNH pays a better dividend. On top of this UNH pays more dividend than 86.92% of the companies listed in the same industry.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.65%

5.2 History

On average, the dividend of UNH grows each year by 14.66%, which is quite nice.
UNH has paid a dividend for at least 10 years, which is a reliable track record.
UNH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.66%
Div Incr Years15
Div Non Decr Years34
UNH Yearly Dividends per shareUNH Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

5.3 Sustainability

51.26% 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.
DP51.26%
EPS Next 2Y10.4%
EPS Next 3Y11.5%
UNH Yearly Income VS Free CF VS DividendUNH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B
UNH Dividend Payout.UNH Dividend Payout, showing the Payout Ratio.UNH Dividend Payout.PayoutRetained Earnings

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UNITEDHEALTH GROUP INC

NYSE:UNH (1/21/2025, 6:40:00 PM)

After market: 523.72 -1.27 (-0.24%)

524.99

+15.23 (+2.99%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)01-16 2025-01-16/bmo
Earnings (Next)N/A N/A
Inst Owners89.49%
Inst Owner Change-0.67%
Ins Owners0.17%
Ins Owner Change-1.83%
Market Cap483.14B
Analysts84.12
Price Target651.55 (24.11%)
Short Float %0.89%
Short Ratio1.65
Dividend
Industry RankSector Rank
Dividend Yield 1.65%
Yearly Dividend8.17
Dividend Growth(5Y)14.66%
DP51.26%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.11%
Min EPS beat(2)1.1%
Max EPS beat(2)1.12%
EPS beat(4)4
Avg EPS beat(4)2.84%
Min EPS beat(4)1.1%
Max EPS beat(4)7.17%
EPS beat(8)8
Avg EPS beat(8)2.4%
EPS beat(12)12
Avg EPS beat(12)2.92%
EPS beat(16)16
Avg EPS beat(16)4.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)1.44%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.27%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)1.06%
PT rev (3m)2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 18.8
Fwd PE 17.41
P/S 1.23
P/FCF 37.62
P/OCF 29.48
P/B 4.84
P/tB 4.84
EV/EBITDA 14.07
EPS(TTM)27.92
EY5.32%
EPS(NY)30.16
Fwd EY5.74%
FCF(TTM)13.95
FCFY2.66%
OCF(TTM)17.81
OCFY3.39%
SpS428.02
BVpS108.53
TBVpS108.53
PEG (NY)2.34
PEG (5Y)1.44
Profitability
Industry RankSector Rank
ROA 4.78%
ROE 14.33%
ROCE 10.9%
ROIC 8.6%
ROICexc 9.84%
ROICexgc 39.22%
OM 8.18%
PM (TTM) 3.63%
GM N/A
FCFM 3.26%
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%
ROICexc(3y)11.76%
ROICexc(5y)11.58%
ROICexgc(3y)33.62%
ROICexgc(5y)32.54%
ROCE(3y)13.3%
ROCE(5y)13.22%
ROICexcg growth 3Y2.94%
ROICexcg growth 5Y3.72%
ROICexc growth 3Y1.22%
ROICexc growth 5Y1.43%
OM growth 3Y-0.02%
OM growth 5Y2.58%
PM growth 3Y0.18%
PM growth 5Y2.6%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1.32
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.07
Debt/EBITDA 2.05
Cap/Depr 87.95%
Cap/Sales 0.9%
Interest Coverage 250
Cash Conversion 45.23%
Profit Quality 89.7%
Current Ratio 0.66
Quick Ratio 0.66
Altman-Z N/A
F-Score6
WACC8.67%
ROIC/WACC0.99
Cap/Depr(3y)82.25%
Cap/Depr(5y)78.77%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.86%
Profit Quality(3y)115.38%
Profit Quality(5y)119.05%
High Growth Momentum
Growth
EPS 1Y (TTM)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
EPS Next Y8.02%
EPS Next 2Y10.4%
EPS Next 3Y11.5%
EPS Next 5Y12.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.76%
Revenue Next Year11.68%
Revenue Next 2Y9.55%
Revenue Next 3Y9.47%
Revenue Next 5Y8.32%
EBIT growth 1Y2.04%
EBIT growth 3Y13.03%
EBIT growth 5Y13.28%
EBIT Next Year18.48%
EBIT Next 3Y12.97%
EBIT Next 5Y11.58%
FCF growth 1Y-59.01%
FCF growth 3Y8.47%
FCF growth 5Y13.47%
OCF growth 1Y-51.74%
OCF growth 3Y9.44%
OCF growth 5Y13.09%