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UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis

NYSE:UNH - New York Stock Exchange, Inc. - US91324P1021 - Common Stock - Currency: USD

467.015  -35.41 (-7.05%)

Fundamental Rating

5

Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 108 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year UNH was profitable.
UNH had a positive operating cash flow in the past year.
UNH had positive earnings in 4 of the past 5 years.
In the past 5 years UNH always reported a positive cash flow from operatings.
UNH Yearly Net Income VS EBIT VS OCF VS FCFUNH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

1.2 Ratios

With a decent Return On Assets value of 4.78%, UNH is doing good in the industry, outperforming 77.57% of the companies in the same industry.
The Return On Equity of UNH (14.33%) is better than 82.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.60%, UNH is in the better half of the industry, outperforming 79.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNH is above the industry average of 8.14%.
Industry RankSector 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%
UNH Yearly ROA, ROE, ROICUNH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

Looking at the Profit Margin, with a value of 3.63%, UNH is in the better half of the industry, outperforming 77.57% of the companies in the same industry.
UNH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.18%, UNH is doing good in the industry, outperforming 76.64% of the companies in the same industry.
In the last couple of years the Operating Margin of UNH has grown nicely.
Industry RankSector 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
UNH Yearly Profit, Operating, Gross MarginsUNH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

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3

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.
UNH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
Compared to 1 year ago, UNH has a worse debt to assets ratio.
UNH Yearly Shares OutstandingUNH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
UNH Yearly Total Debt VS Total AssetsUNH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

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.
The Debt to FCF ratio of UNH (6.07) is better than 72.90% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 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 RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.07
Altman-Z N/A
ROIC/WACC1
WACC8.57%
UNH Yearly LT Debt VS Equity VS FCFUNH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.3 Liquidity

A Current Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, UNH is doing worse than 88.78% of the companies in the same industry.
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.
UNH's Quick ratio of 0.66 is on the low side compared to the rest of the industry. UNH is outperformed by 83.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66
UNH Yearly Current Assets VS Current LiabilitesUNH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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4

3. Growth

3.1 Past

UNH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.15%, which is quite good.
Measured over the past years, UNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
EPS 1Y (TTM)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.76%

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 12.21% 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 8.32% on average per year.
EPS Next Y7.55%
EPS Next 2Y10.09%
EPS Next 3Y11.25%
EPS Next 5Y12.21%
Revenue Next Year12.23%
Revenue Next 2Y10.11%
Revenue Next 3Y9.45%
Revenue Next 5Y8.32%

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.
UNH Yearly Revenue VS EstimatesUNH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200B 400B 600B
UNH Yearly EPS VS EstimatesUNH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.73, the valuation of UNH can be described as correct.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than 72.90% of the companies in the same industry.
UNH is valuated rather cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.55, the valuation of UNH can be described as correct.
UNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 71.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.06. UNH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.73
Fwd PE 15.55
UNH Price Earnings VS Forward Price EarningsUNH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 60.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UNH is valued a bit cheaper than 64.49% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.47
EV/EBITDA 13.89
UNH Per share dataUNH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UNH may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)1.28
EPS Next 2Y10.09%
EPS Next 3Y11.25%

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6

5. Dividend

5.1 Amount

UNH has a Yearly Dividend Yield of 1.58%.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.95. UNH pays more dividend than 85.98% of the companies in the same industry.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

On average, the dividend of UNH grows each year by 14.66%, which is quite nice.
UNH has been paying a dividend for at least 10 years, so it has 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)14.66%
Div Incr Years15
Div Non Decr Years34
UNH Yearly Dividends per shareUNH Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

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 2Y10.09%
EPS Next 3Y11.25%
UNH Yearly Income VS Free CF VS DividendUNH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B
UNH Dividend Payout.UNH Dividend Payout, showing the Payout Ratio.UNH Dividend Payout.PayoutRetained Earnings

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UNITEDHEALTH GROUP INC

NYSE:UNH (2/21/2025, 3:50:03 PM)

467.015

-35.41 (-7.05%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)01-16 2025-01-16/bmo
Earnings (Next)07-14 2025-07-14/amc
Inst Owners89.49%
Inst Owner Change-1.04%
Ins Owners0.17%
Ins Owner Change-1.62%
Market Cap429.78B
Analysts85.29
Price Target651 (39.4%)
Short Float %0.84%
Short Ratio1.45
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend8.17
Dividend Growth(5Y)14.66%
DP51.26%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
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)-0.08%
PT rev (3m)2.5%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 16.73
Fwd PE 15.55
P/S 1.09
P/FCF 33.47
P/OCF 26.23
P/B 4.3
P/tB 4.3
EV/EBITDA 13.89
EPS(TTM)27.92
EY5.98%
EPS(NY)30.03
Fwd EY6.43%
FCF(TTM)13.95
FCFY2.99%
OCF(TTM)17.81
OCFY3.81%
SpS428.02
BVpS108.53
TBVpS108.53
PEG (NY)2.21
PEG (5Y)1.28
Profitability
Industry RankSector 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 RankSector 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
WACC8.57%
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)11.15%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%10.55%
EPS Next Y7.55%
EPS Next 2Y10.09%
EPS Next 3Y11.25%
EPS Next 5Y12.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.76%
Revenue Next Year12.23%
Revenue Next 2Y10.11%
Revenue Next 3Y9.45%
Revenue Next 5Y8.32%
EBIT growth 1Y2.04%
EBIT growth 3Y13.03%
EBIT growth 5Y13.28%
EBIT Next Year18.76%
EBIT Next 3Y12.82%
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%