UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:UNH • US91324P1021
286.93 USD
-5.36 (-1.83%)
At close: Jan 30, 2026
286.28 USD
-0.65 (-0.23%)
After Hours: 1/30/2026, 8:22:37 PM
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of UNH while its profitability can be described as average. 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.
- UNH had a positive operating cash flow in the past year.
- 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
- UNH has a better Return On Assets (3.89%) than 69.90% of its industry peers.
- UNH's Return On Equity of 12.05% is fine compared to the rest of the industry. UNH outperforms 76.70% of its industry peers.
- UNH has a Return On Invested Capital (5.09%) which is in line with its industry peers.
- UNH had an Average Return On Invested Capital over the past 3 years of 8.75%. This is in line with the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 12.05% | ||
| ROIC | 5.09% |
ROA(3y)5.63%
ROA(5y)6.65%
ROE(3y)17.6%
ROE(5y)20.55%
ROIC(3y)8.75%
ROIC(5y)9.53%
1.3 Margins
- UNH has a better Profit Margin (2.69%) than 65.05% of its industry peers.
- UNH's Profit Margin has declined in the last couple of years.
- UNH has a better Operating Margin (4.24%) than 61.16% of its industry peers.
- UNH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.24% | ||
| PM (TTM) | 2.69% | ||
| GM | N/A |
OM growth 3Y-21.54%
OM growth 5Y-13.43%
PM growth 3Y-24.29%
PM growth 5Y-14.77%
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.
- UNH has less shares outstanding than it did 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 4.99. This is a neutral value as UNH would need 4.99 years to pay back of all of its debts.
- UNH has a better Debt to FCF ratio (4.99) than 66.02% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that UNH is somewhat dependend on debt financing.
- The Debt to Equity ratio of UNH (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.99 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC8.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The earnings per share for UNH have decreased strongly by -41.58% in the last year.
- The Earnings Per Share has been decreasing by -0.67% on average over the past years.
- Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 11.81% in the last year.
- Measured over the past years, UNH shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
EPS 1Y (TTM)-41.58%
EPS 3Y-9.75%
EPS 5Y-0.67%
EPS Q2Q%-69.02%
Revenue 1Y (TTM)11.81%
Revenue growth 3Y11.35%
Revenue growth 5Y11.72%
Sales Q2Q%12.31%
3.2 Future
- Based on estimates for the next years, UNH will show a very strong growth in Earnings Per Share. The EPS will grow by 21.30% on average per year.
- The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y9.86%
EPS Next 2Y13.65%
EPS Next 3Y17.57%
EPS Next 5Y21.3%
Revenue Next Year1.48%
Revenue Next 2Y3.3%
Revenue Next 3Y3.62%
Revenue Next 5Y5.37%
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 accelerating.
- 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 17.59, UNH is valued on the expensive side.
- Based on the Price/Earnings ratio, UNH is valued a bit cheaper than the industry average as 77.67% of the companies are valued more expensively.
- UNH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.01, the valuation of UNH can be described as correct.
- Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than 76.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
- 65.05% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
- 71.84% of the companies in the same industry are more expensive than UNH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.53 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as UNH's earnings are expected to grow with 17.57% in the coming years.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y13.65%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.02%, UNH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.47, UNH pays a better dividend. On top of this UNH pays more dividend than 96.12% of the companies listed in the same industry.
- UNH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
- The dividend of UNH is nicely growing with an annual growth rate of 12.43%!
- 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)12.43%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
- UNH pays out 65.66% of its income as dividend. This is not a sustainable payout ratio.
- UNH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.66%
EPS Next 2Y13.65%
EPS Next 3Y17.57%
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 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 5 / 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 17.59 and the Price/Book (PB) ratio is 2.6.
Is the dividend of UNITEDHEALTH GROUP INC sustainable?
The dividend rating of UNITEDHEALTH GROUP INC (UNH) is 8 / 10 and the dividend payout ratio is 65.66%.