UNITEDHEALTH GROUP INC (UNH)
US91324P1021 - Common Stock
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 118 industry peers in the Health Care Providers & Services industry. UNH has an excellent profitability rating, but 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
UNH had positive earnings in the past year.
UNH had a positive operating cash flow in the past year.
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
UNH's Return On Assets of 5.40% is amongst the best of the industry. UNH outperforms 80.34% of its industry peers.
UNH has a better Return On Equity (16.63%) than 87.18% of its industry peers.
With an excellent Return On Invested Capital value of 9.26%, UNH belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNH is in line with the industry average of 8.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROIC | 9.26% |
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%
1.3 Margins
Looking at the Profit Margin, with a value of 4.05%, UNH is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
In the last couple of years the Profit Margin of UNH has grown nicely.
The Operating Margin of UNH (8.49%) is better than 82.05% of its industry peers.
UNH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| 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
UNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UNH has less shares outstanding
Compared to 5 years ago, UNH has less shares outstanding
UNH has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UNH is 7.00, which is on the high side as it means it would take UNH, 7.00 years of fcf income to pay off all of its debts.
UNH's Debt to FCF ratio of 7.00 is fine compared to the rest of the industry. UNH outperforms 70.09% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that UNH is somewhat dependend on debt financing.
UNH's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. UNH outperforms 50.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.54%
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 84.62% of its industry peers.
A Quick Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, UNH is doing worse than 80.34% 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 13.33%, which is quite good.
The Earnings Per Share has been growing by 14.31% 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 12.96% in the last year.
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)13.33%
EPS 3Y14.19%
EPS 5Y14.31%
EPS growth Q2Q14.38%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Revenue growth Q2Q8.56%
3.2 Future
UNH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y11.42%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
EPS Next 5Y12.92%
Revenue Next Year8.57%
Revenue Next 2Y8.15%
Revenue Next 3Y8.19%
Revenue Next 5Y8.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 19.75, the valuation of UNH can be described as rather expensive.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than the industry average as 76.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.56. UNH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of UNH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 74.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.34, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit cheaper than 65.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.96 | ||
| EV/EBITDA | 14.14 |
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.
UNH's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)1.38
EPS Next 2Y12.15%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 1.48%.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.76. UNH pays more dividend than 87.18% of the companies in the same industry.
UNH's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of UNH grows each year by 16.15%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.15%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
UNH pays out 45.26% 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.
DP45.26%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
UNITEDHEALTH GROUP INC
NYSE:UNH (5/14/2024, 6:05:05 PM)
After market: 513.88 0 (0%)513.88
+2.14 (+0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap472.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.73
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.33%
EPS 3Y14.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y