UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
343.98 USD
-2.87 (-0.83%)
344.01 USD
+0.03 (+0.01%)
UNH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. UNH has an average financial health and profitability rating. UNH has a decent growth rate and is not valued too expensively. Finally UNH also has an excellent dividend rating.
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.
In the past 5 years UNH has always been profitable.
Each year in the past 5 years UNH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.58%, UNH is doing good in the industry, outperforming 79.21% of the companies in the same industry.
The Return On Equity of UNH (18.36%) is better than 86.14% of its industry peers.
With a decent Return On Invested Capital value of 7.55%, UNH is doing good in the industry, outperforming 70.30% of the companies in the same industry.
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 9.19%.
| 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 75.25% of its industry peers.
In the last couple of years the Profit Margin of UNH has declined.
UNH's Operating Margin of 6.06% is fine compared to the rest of the industry. UNH outperforms 69.31% 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
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
UNH has an Altman-Z score of 2.93. 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.
Looking at the Altman-Z score, with a value of 2.93, UNH is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.61, UNH is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.76. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. UNH outperforms 48.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.86
WACC8.73%
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.
UNH has a worse Current ratio (0.95) than 73.27% of its industry peers.
A Quick Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
The Quick ratio of UNH (0.95) is worse than 68.32% 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.
Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 10.48% in the last year.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
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
UNH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.69% yearly.
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 5Y2.69%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
Revenue Next 3Y6.02%
Revenue Next 5Y6.13%
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 decreasing.
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
With a Price/Earnings ratio of 16.37, UNH is valued correctly.
79.21% of the companies in the same industry are more expensive than UNH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. UNH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.18, 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 64.36% 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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 65.35% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 69.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 11.9 |
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)1.25
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.55%.
UNH's Dividend Yield is rather good when compared to the industry average which is at 0.59. UNH pays more dividend than 95.05% of the companies in the same industry.
UNH's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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
UNH pays out 44.61% 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.
DP44.61%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
343.98
-2.87 (-0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.63%
Inst Owner Change-0.11%
Ins Owners0.16%
Ins Owner Change-0.95%
Market Cap311.59B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts75.15
Price Target404.12 (17.48%)
Short Float %1.65%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP44.61%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
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)0.91%
PT rev (3m)15.87%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 19.18 | ||
| P/S | 0.72 | ||
| P/FCF | 17.93 | ||
| P/OCF | 14.86 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.9 |
EPS(TTM)21.01
EY6.11%
EPS(NY)17.93
Fwd EY5.21%
FCF(TTM)19.18
FCFY5.58%
OCF(TTM)23.14
OCFY6.73%
SpS480.39
BVpS105.74
TBVpS-41.22
PEG (NY)N/A
PEG (5Y)1.25
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 | 2.93 |
F-Score9
WACC8.73%
ROIC/WACC0.86
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 5Y2.69%
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.
Can you provide the valuation status for UNITEDHEALTH GROUP INC?
ChartMill assigns a valuation rating of 4 / 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 are the PE and PB ratios of UNITEDHEALTH GROUP INC (UNH) stock?
The Price/Earnings (PE) ratio for UNITEDHEALTH GROUP INC (UNH) is 16.37 and the Price/Book (PB) ratio is 3.25.
Is the dividend of UNITEDHEALTH GROUP INC sustainable?
The dividend rating of UNITEDHEALTH GROUP INC (UNH) is 7 / 10 and the dividend payout ratio is 44.61%.