UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - NYSE:UNH - US91324P1021 - Common Stock
362.5 USD
+2.05 (+0.57%)
363.736 USD
+1.24 (+0.34%)
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 101 industry peers in the Health Care Providers & Services industry. UNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNH has a correct valuation and a medium growth rate. Finally UNH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNH was profitable.
UNH had a positive operating cash flow in the past year.
Each year in the past 5 years UNH has been profitable.
UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.90%, UNH belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
UNH's Return On Equity of 21.20% is amongst the best of the industry. UNH outperforms 89.11% of its industry peers.
UNH has a Return On Invested Capital of 7.89%. This is in the better half of the industry: UNH outperforms 72.28% 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 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 21.2% | ||
| ROIC | 7.89% |
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
With a decent Profit Margin value of 5.04%, UNH is doing good in the industry, outperforming 77.23% of the companies in the same industry.
UNH's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.27%, UNH is doing good in the industry, outperforming 71.29% of the companies in the same industry.
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 | 7.27% | ||
| PM (TTM) | 5.04% | ||
| 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.
The number of shares outstanding for UNH has been reduced compared to 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 a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as UNH would need 3.13 years to pay back of all of its debts.
The Debt to FCF ratio of UNH (3.13) is better than 77.23% of its industry peers.
UNH has a Debt/Equity ratio of 0.73. This is a neutral value indicating UNH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, UNH perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC8.98%
2.3 Liquidity
UNH has a Current Ratio of 0.88. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of UNH (0.88) is worse than 80.20% of its industry peers.
A Quick Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, UNH is doing worse than 71.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for UNH have decreased by -5.40% in the last year.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
UNH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.70%.
UNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.57% yearly.
EPS 1Y (TTM)-5.4%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-40%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
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 2.92% on average per year.
Based on estimates for the next years, UNH will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y-41.38%
EPS Next 2Y-20.24%
EPS Next 3Y-9.16%
EPS Next 5Y2.92%
Revenue Next Year11.68%
Revenue Next 2Y7.7%
Revenue Next 3Y6.86%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.36 indicates a correct valuation of UNH.
81.19% of the companies in the same industry are more expensive than UNH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (26.89), we can say UNH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.41, UNH is valued on the expensive side.
62.38% of the companies in the same industry are more expensive than UNH, based on the Price/Forward Earnings ratio.
UNH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 20.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit cheaper than the industry average as 68.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UNH is valued cheaper than 84.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
UNH has a very decent profitability rating, which may justify a higher PE ratio.
UNH's earnings are expected to decrease with -9.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-20.24%
EPS Next 3Y-9.16%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, UNH pays a better dividend. On top of this UNH pays more dividend than 94.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of UNH is nicely growing with an annual growth rate of 14.73%!
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)14.73%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
UNH pays out 36.54% of its income as dividend. This is a sustainable payout ratio.
UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.54%
EPS Next 2Y-20.24%
EPS Next 3Y-9.16%
362.5
+2.05 (+0.57%)
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 Change0.17%
Ins Owners0.17%
Ins Owner Change2.84%
Market Cap328.31B
Revenue(TTM)422.82B
Net Income(TTM)21.30B
Analysts75.63
Price Target348.76 (-3.79%)
Short Float %1.47%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP36.54%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.05%
Min EPS beat(2)-9.92%
Max EPS beat(2)-2.18%
EPS beat(4)2
Avg EPS beat(4)-2.67%
Min EPS beat(4)-9.92%
Max EPS beat(4)1.12%
EPS beat(8)6
Avg EPS beat(8)0.29%
EPS beat(12)10
Avg EPS beat(12)1.09%
EPS beat(16)14
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.12%
PT rev (1m)1.26%
PT rev (3m)-8.93%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-39.59%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-26.66%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 20.41 | ||
| P/S | 0.78 | ||
| P/FCF | 12.98 | ||
| P/OCF | 11.33 | ||
| P/B | 3.27 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)25.24
EY6.96%
EPS(NY)17.76
Fwd EY4.9%
FCF(TTM)27.93
FCFY7.7%
OCF(TTM)32
OCFY8.83%
SpS466.86
BVpS110.93
TBVpS110.93
PEG (NY)N/A
PEG (5Y)1.1
Graham Number251
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 21.2% | ||
| ROCE | 10.15% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 33.7% | ||
| OM | 7.27% | ||
| PM (TTM) | 5.04% | ||
| GM | N/A | ||
| FCFM | 5.98% |
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-Score8
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 87.23% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.85% | ||
| Profit Quality | 118.76% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score8
WACC8.98%
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)-5.4%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-40%
EPS Next Y-41.38%
EPS Next 2Y-20.24%
EPS Next 3Y-9.16%
EPS Next 5Y2.92%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
Revenue Next Year11.68%
Revenue Next 2Y7.7%
Revenue Next 3Y6.86%
Revenue Next 5Y6.32%
EBIT growth 1Y-3.97%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-25.01%
EBIT Next 3Y-3.56%
EBIT Next 5Y4.32%
FCF growth 1Y-33.78%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-29.96%
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 14.36 and the Price/Book (PB) ratio is 3.27.
What is the financial health of UNITEDHEALTH GROUP INC (UNH) stock?
The financial health rating of UNITEDHEALTH GROUP INC (UNH) is 3 / 10.