UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
331.265 USD
-0.9 (-0.27%)
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 101 industry peers in the Health Care Providers & Services industry. UNH has only an average score on both its financial health and profitability. UNH has a correct valuation and a medium growth rate. Finally UNH also has an excellent dividend rating.
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.
UNH had positive earnings in each of the past 5 years.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
UNH has a Return On Assets of 5.58%. This is in the better half of the industry: UNH outperforms 78.22% 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 85.15% 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 70.30% 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 9.58%.
| 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.
UNH's Profit Margin has declined in the last couple of years.
UNH's Operating Margin of 6.06% is fine compared to the rest of the industry. UNH outperforms 68.32% 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
Compared to 1 year ago, UNH has a worse debt to assets ratio.
2.2 Solvency
UNH has an Altman-Z score of 2.90. 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.
UNH has a Altman-Z score of 2.90. This is in the better half of the industry: UNH outperforms 61.39% of its industry peers.
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.
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.
A Debt/Equity ratio of 0.76 indicates that 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 46.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.87
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, UNH is doing worse than 74.26% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
UNH's Quick ratio of 0.95 is on the low side compared to the rest of the industry. UNH is outperformed by 69.31% 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
The Earnings Per Share is expected to grow by 2.72% on average over the next years.
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-40.98%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
EPS Next 5Y2.72%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
Revenue Next 3Y6.02%
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
The Price/Earnings ratio is 15.77, which indicates a correct valuation of UNH.
Based on the Price/Earnings ratio, UNH is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.77, UNH is valued a bit cheaper.
UNH is valuated rather expensively with a Price/Forward Earnings ratio of 18.47.
UNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 67.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
66.34% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 70.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.27 | ||
| EV/EBITDA | 11.55 |
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 -8.89% in the coming years.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.60, UNH pays a better dividend. On top of this UNH pays more dividend than 95.05% of the companies listed in the same industry.
UNH's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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-19.86%
EPS Next 3Y-8.89%
NYSE:UNH (12/31/2025, 11:41:10 AM)
331.265
-0.9 (-0.27%)
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 Change-0.93%
Market Cap300.07B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts74.55
Price Target404.12 (21.99%)
Short Float %1.65%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)1.69%
PT rev (3m)17.33%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.58%
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 | 15.77 | ||
| Fwd PE | 18.47 | ||
| P/S | 0.69 | ||
| P/FCF | 17.27 | ||
| P/OCF | 14.31 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.55 |
EPS(TTM)21.01
EY6.34%
EPS(NY)17.93
Fwd EY5.41%
FCF(TTM)19.18
FCFY5.79%
OCF(TTM)23.14
OCFY6.99%
SpS480.39
BVpS105.74
TBVpS-41.22
PEG (NY)N/A
PEG (5Y)1.21
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 | 2.9 |
F-Score9
WACC8.71%
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-40.98%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
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 3Y6.02%
Revenue Next 5Y6.13%
EBIT growth 1Y-18.15%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-24.8%
EBIT Next 3Y-3.54%
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 15.77 and the Price/Book (PB) ratio is 3.13.
What is the financial health of UNITEDHEALTH GROUP INC (UNH) stock?
The financial health rating of UNITEDHEALTH GROUP INC (UNH) is 4 / 10.