UNITEDHEALTH GROUP INC (UNH)
US91324P1021 - Common Stock
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 113 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.
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
With an excellent Return On Assets value of 4.78%, UNH belongs to the best of the industry, outperforming 80.53% of the companies in the same industry.
UNH has a better Return On Equity (14.33%) than 84.96% of its industry peers.
UNH has a better Return On Invested Capital (8.60%) than 82.30% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.46%. This is above the industry average of 8.10%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of UNH (3.63%) is better than 77.88% of its industry peers.
UNH's Profit Margin has improved in the last couple of years.
UNH's Operating Margin of 8.18% is fine compared to the rest of the industry. UNH outperforms 78.76% of its industry peers.
In the last couple of years the Operating Margin of UNH has grown nicely.
| Industry Rank | Sector 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
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.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
The debt/assets ratio for UNH has been reduced compared to a year ago.
2.2 Solvency
UNH has a debt to FCF ratio of 6.07. This is a slightly negative value and a sign of low solvency as UNH would need 6.07 years to pay back of all of its debts.
UNH has a better Debt to FCF ratio (6.07) than 76.99% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that UNH is somewhat dependend on debt financing.
The Debt to Equity ratio of UNH (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | N/A |
ROIC/WACC1.01
WACC8.54%
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.
Looking at the Current ratio, with a value of 0.66, UNH is doing worse than 86.73% of the companies in the same industry.
UNH has a Quick 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.
With a Quick ratio value of 0.66, UNH is not doing good in the industry: 81.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
UNH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.22%, which is quite good.
The Earnings Per Share has been growing by 14.31% on average over the past years. This is quite good.
The Revenue has grown by 9.42% in the past year. This is quite good.
The Revenue has been growing by 10.43% on average over the past years. This is quite good.
EPS 1Y (TTM)12.22%
EPS 3Y14.19%
EPS 5Y14.31%
EPS Q2Q%8.99%
Revenue 1Y (TTM)9.42%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Sales Q2Q%9.16%
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 12.92% yearly.
UNH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y11.03%
EPS Next 2Y9.65%
EPS Next 3Y10.6%
EPS Next 5Y12.92%
Revenue Next Year8.52%
Revenue Next 2Y8.08%
Revenue Next 3Y7.95%
Revenue Next 5Y8.07%
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.
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
Based on the Price/Earnings ratio of 22.05, the valuation of UNH can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 69.91% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (28.65), we can say UNH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.91, the valuation of UNH can be described as rather expensive.
UNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 66.37% of the companies in the same industry.
UNH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
UNH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 64.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.09 | ||
| EV/EBITDA | 16.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UNH may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)1.54
EPS Next 2Y9.65%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.16, UNH pays a better dividend. On top of this UNH pays more dividend than 84.96% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, UNH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of UNH grows each year by 16.15%, 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)16.15%
Div Incr Years14
Div Non Decr Years33
5.3 Sustainability
UNH pays out 51.26% of its income as dividend. 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.
DP51.26%
EPS Next 2Y9.65%
EPS Next 3Y10.6%
UNITEDHEALTH GROUP INC
NYSE:UNH (11/21/2024, 1:54:03 PM)
601.245
+0.75 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap553.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 19.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 14.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.18% | ||
| PM (TTM) | 3.63% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.22%
EPS 3Y14.19%
EPS 5Y
EPS Q2Q%
EPS Next Y11.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.42%
Revenue growth 3Y13.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y