UNITEDHEALTH GROUP INC (UNH)
US91324P1021 - Common Stock
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 109 industry peers in the Health Care Providers & Services industry. While UNH belongs to the best of the industry regarding profitability, there are concerns on its financial health. UNH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UNH was profitable.
In the past year UNH had a positive cash flow from operations.
In the past 5 years UNH has always been profitable.
UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNH's Return On Assets of 4.78% is fine compared to the rest of the industry. UNH outperforms 79.63% of its industry peers.
Looking at the Return On Equity, with a value of 14.33%, UNH belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
UNH has a better Return On Invested Capital (8.60%) than 80.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNH is above the industry average of 8.15%.
| 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 77.78% of its industry peers.
In the last couple of years the Profit Margin of UNH has grown nicely.
Looking at the Operating Margin, with a value of 8.18%, UNH is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
UNH's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, UNH has less shares outstanding
Compared to 5 years ago, UNH has less shares outstanding
The debt/assets ratio for UNH has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UNH is 6.07, which is on the high side as it means it would take UNH, 6.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.07, UNH is doing good in the industry, outperforming 73.15% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.74. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC8.61%
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.
UNH has a Current ratio of 0.66. This is amonst the worse of the industry: UNH underperforms 87.04% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.66, UNH is doing worse than 81.48% of the companies in the same industry.
| 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.
UNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.43% yearly.
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
Based on estimates for the next years, UNH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.81% on average per year.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 8.86% on average per year.
EPS Next Y11.04%
EPS Next 2Y9.68%
EPS Next 3Y10.6%
EPS Next 5Y11.81%
Revenue Next Year8.52%
Revenue Next 2Y8.08%
Revenue Next 3Y7.93%
Revenue Next 5Y8.86%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.34, UNH is valued on the expensive side.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
UNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 16.55 indicates a correct valuation of UNH.
70.37% of the companies in the same industry are more expensive than UNH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. UNH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.55 |
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 60.19% 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 63.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.84 | ||
| EV/EBITDA | 13.55 |
4.3 Compensation for Growth
UNH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of UNH may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)1.28
EPS Next 2Y9.68%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, UNH has a reasonable but not impressive dividend return.
UNH's Dividend Yield is rather good when compared to the industry average which is at 3.12. UNH pays more dividend than 84.26% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.24, UNH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.15%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
51.26% of the earnings are spent on dividend by UNH. This is a bit on the high side, but may be sustainable.
The dividend of UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.26%
EPS Next 2Y9.68%
EPS Next 3Y10.6%
UNITEDHEALTH GROUP INC
NYSE:UNH (12/20/2024, 8:04:00 PM)
After market: 500.13 0 (0%)500.13
+10.88 (+2.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0.73%
Ins Owners0.17%
Ins Owner Change-1.17%
Market Cap460.26B
Analysts84.12
Price Target644.73 (28.91%)
Short Float %0.86%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Dividend Growth(5Y)16.15%
DP51.26%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.11%
Min EPS beat(2)1.1%
Max EPS beat(2)1.12%
EPS beat(4)4
Avg EPS beat(4)2.84%
Min EPS beat(4)1.1%
Max EPS beat(4)7.17%
EPS beat(8)8
Avg EPS beat(8)2.4%
EPS beat(12)12
Avg EPS beat(12)2.92%
EPS beat(16)16
Avg EPS beat(16)4.06%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)1.44%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.27%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)1.52%
PT rev (3m)1.98%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 16.55 | ||
| P/S | 1.17 | ||
| P/FCF | 35.84 | ||
| P/OCF | 28.09 | ||
| P/B | 4.61 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 13.55 |
EPS(TTM)27.27
EY5.45%
EPS(NY)30.22
Fwd EY6.04%
FCF(TTM)13.95
FCFY2.79%
OCF(TTM)17.81
OCFY3.56%
SpS428.02
BVpS108.53
TBVpS108.53
PEG (NY)1.66
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 14.33% | ||
| ROCE | 10.9% | ||
| ROIC | 8.6% | ||
| ROICexc | 9.84% | ||
| ROICexgc | 39.22% | ||
| OM | 8.18% | ||
| PM (TTM) | 3.63% | ||
| GM | N/A | ||
| FCFM | 3.26% |
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%
ROICexc(3y)11.76%
ROICexc(5y)11.58%
ROICexgc(3y)33.62%
ROICexgc(5y)32.54%
ROCE(3y)13.3%
ROCE(5y)13.22%
ROICexcg growth 3Y2.94%
ROICexcg growth 5Y3.72%
ROICexc growth 3Y1.22%
ROICexc growth 5Y1.43%
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
F-Score6
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 87.95% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.23% | ||
| Profit Quality | 89.7% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score6
WACC8.61%
ROIC/WACC1
Cap/Depr(3y)82.25%
Cap/Depr(5y)78.77%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.86%
Profit Quality(3y)115.38%
Profit Quality(5y)119.05%
High Growth Momentum
Growth
EPS 1Y (TTM)12.22%
EPS 3Y14.19%
EPS 5Y14.31%
EPS Q2Q%8.99%
EPS Next Y11.04%
EPS Next 2Y9.68%
EPS Next 3Y10.6%
EPS Next 5Y11.81%
Revenue 1Y (TTM)9.42%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Sales Q2Q%9.16%
Revenue Next Year8.52%
Revenue Next 2Y8.08%
Revenue Next 3Y7.93%
Revenue Next 5Y8.86%
EBIT growth 1Y2.04%
EBIT growth 3Y13.03%
EBIT growth 5Y13.28%
EBIT Next Year16.3%
EBIT Next 3Y13.21%
EBIT Next 5Y11.58%
FCF growth 1Y-59.01%
FCF growth 3Y8.47%
FCF growth 5Y13.47%
OCF growth 1Y-51.74%
OCF growth 3Y9.44%
OCF growth 5Y13.09%