UNITEDHEALTH GROUP INC (1UNH.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1UNH - US91324P1021 - Common Stock
294.05 EUR
-7.95 (-2.63%)
We assign a fundamental rating of 5 out of 10 to 1UNH. 1UNH was compared to 26 industry peers in the Health Care Providers & Services industry. 1UNH has an average financial health and profitability rating. While showing a medium growth rate, 1UNH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year 1UNH was profitable.
- In the past year 1UNH had a positive cash flow from operations.
- In the past 5 years 1UNH has always been profitable.
- Each year in the past 5 years 1UNH had a positive operating cash flow.
1.2 Ratios
- 1UNH has a Return On Assets of 5.58%. This is amongst the best in the industry. 1UNH outperforms 88.46% of its industry peers.
- With an excellent Return On Equity value of 18.36%, 1UNH belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.55%, 1UNH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1UNH is above the industry average of 6.45%.
| 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
- 1UNH has a Profit Margin of 4.04%. This is in the better half of the industry: 1UNH outperforms 69.23% of its industry peers.
- 1UNH's Profit Margin has declined in the last couple of years.
- 1UNH has a Operating Margin of 6.06%. This is comparable to the rest of the industry: 1UNH outperforms 57.69% of its industry peers.
- 1UNH's Operating Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1UNH is creating some value.
- Compared to 1 year ago, 1UNH has less shares outstanding
- The number of shares outstanding for 1UNH has been reduced compared to 5 years ago.
- 1UNH has a worse debt/assets ratio than last year.
2.2 Solvency
- 1UNH has an Altman-Z score of 2.94. This is not the best score and indicates that 1UNH 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 2.94, 1UNH is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
- The Debt to FCF ratio of 1UNH is 4.61, which is a neutral value as it means it would take 1UNH, 4.61 years of fcf income to pay off all of its debts.
- 1UNH's Debt to FCF ratio of 4.61 is amongst the best of the industry. 1UNH outperforms 84.62% of its industry peers.
- 1UNH has a Debt/Equity ratio of 0.76. This is a neutral value indicating 1UNH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.76, 1UNH is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.87
WACC8.63%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that 1UNH may have some problems paying its short term obligations.
- 1UNH has a Current ratio (0.95) which is comparable to the rest of the industry.
- 1UNH has a Quick Ratio of 0.95. This is a bad value and indicates that 1UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1UNH has a Quick ratio of 0.95. This is comparable to the rest of the industry: 1UNH outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- 1UNH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.96%.
- 1UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
- The Revenue has grown by 10.48% in the past year. This is quite good.
- Measured over the past years, 1UNH shows a quite strong growth in Revenue. The Revenue has been growing by 10.57% on average per year.
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
- Based on estimates for the next years, 1UNH will show a small growth in Earnings Per Share. The EPS will grow by 2.69% on average per year.
- The Revenue is expected to grow by 6.13% on average over the next years.
EPS Next Y-40.97%
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
EPS Next 5Y2.69%
Revenue Next Year11.72%
Revenue Next 2Y6.48%
Revenue Next 3Y6.03%
Revenue Next 5Y6.13%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 16.57, the valuation of 1UNH can be described as correct.
- 1UNH's Price/Earnings ratio is a bit cheaper when compared to the industry. 1UNH is cheaper than 61.54% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1UNH is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.42, the valuation of 1UNH can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1UNH indicates a slightly more expensive valuation: 1UNH is more expensive than 73.08% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1UNH to the average of the S&P500 Index (25.98), we can say 1UNH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.57 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
- 65.38% of the companies in the same industry are cheaper than 1UNH, based on the Enterprise Value to EBITDA ratio.
- 1UNH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
- 1UNH has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as 1UNH's earnings are expected to decrease with -8.96% in the coming years.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
5. Dividend
5.1 Amount
- 1UNH has a Yearly Dividend Yield of 2.49%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.72, 1UNH pays a bit more dividend than its industry peers.
- 1UNH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
- On average, the dividend of 1UNH grows each year by 14.73%, which is quite nice.
Dividend Growth(5Y)14.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 44.61% of the earnings are spent on dividend by 1UNH. This is a bit on the high side, but may be sustainable.
- 1UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.61%
EPS Next 2Y-19.89%
EPS Next 3Y-8.96%
UNITEDHEALTH GROUP INC / 1UNH.MI FAQ
What is the fundamental rating for 1UNH stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1UNH.MI.
Can you provide the valuation status for UNITEDHEALTH GROUP INC?
ChartMill assigns a valuation rating of 3 / 10 to UNITEDHEALTH GROUP INC (1UNH.MI). This can be considered as Overvalued.
How profitable is UNITEDHEALTH GROUP INC (1UNH.MI) stock?
UNITEDHEALTH GROUP INC (1UNH.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of UNITEDHEALTH GROUP INC (1UNH.MI) stock?
The Price/Earnings (PE) ratio for UNITEDHEALTH GROUP INC (1UNH.MI) is 16.57 and the Price/Book (PB) ratio is 3.29.
What is the financial health of UNITEDHEALTH GROUP INC (1UNH.MI) stock?
The financial health rating of UNITEDHEALTH GROUP INC (1UNH.MI) is 5 / 10.