UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
323.6 USD
-0.02 (-0.01%)
323.3 USD
-0.3 (-0.09%)
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 100 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
In the past year UNH was profitable.
In the past year UNH had a positive cash flow from operations.
Each year in the past 5 years UNH has been profitable.
Each year in the past 5 years UNH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.58%, UNH is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.36%, UNH belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
UNH has a better Return On Invested Capital (7.55%) than 71.00% 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 9.42%.
| 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 has a better Profit Margin (4.04%) than 74.00% 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 68.00% 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 | 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
Compared to 1 year ago, UNH has a worse debt to assets ratio.
2.2 Solvency
UNH has an Altman-Z score of 2.88. 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 (2.88) is better than 61.00% 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.
UNH's Debt to FCF ratio of 4.61 is fine compared to the rest of the industry. UNH outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that UNH is somewhat dependend on debt financing.
The Debt to Equity ratio of UNH (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.89
WACC8.48%
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 doing worse than 73.00% of the companies in the same industry.
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 Quick ratio of 0.95. This is in the lower half of the industry: UNH underperforms 69.00% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
The Revenue has grown by 10.48% 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)-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.
UNH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.40 indicates a correct valuation of UNH.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, UNH is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.09, which indicates a rather expensive current valuation of UNH.
Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than the industry average as 63.00% of the companies are valued more expensively.
UNH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
67.00% 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 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.87 | ||
| EV/EBITDA | 11.29 |
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 -8.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-19.95%
EPS Next 3Y-8.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.65%, 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 2.55. UNH pays more dividend than 95.00% of the companies in the same industry.
UNH's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
UNH has been paying a dividend for at least 10 years, so it has 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)14.73%
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.
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%
323.6
-0.02 (-0.01%)
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-3.97%
Ins Owners0.17%
Ins Owner Change0.38%
Market Cap293.13B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts74.55
Price Target400.47 (23.75%)
Short Float %1.37%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)20.05%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 18.09 | ||
| P/S | 0.67 | ||
| P/FCF | 16.87 | ||
| P/OCF | 13.98 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.29 |
EPS(TTM)21.01
EY6.49%
EPS(NY)17.89
Fwd EY5.53%
FCF(TTM)19.18
FCFY5.93%
OCF(TTM)23.14
OCFY7.15%
SpS480.39
BVpS105.74
TBVpS-41.22
PEG (NY)N/A
PEG (5Y)1.18
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 | 2.88 |
F-Score9
WACC8.48%
ROIC/WACC0.89
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 15.4 and the Price/Book (PB) ratio is 3.06.
What is the financial health of UNITEDHEALTH GROUP INC (UNH) stock?
The financial health rating of UNITEDHEALTH GROUP INC (UNH) is 4 / 10.