UNITEDHEALTH GROUP INC (1UNH.MI) Stock Fundamental Analysis
BIT:1UNH - Euronext Milan - US91324P1021 - Common Stock - Currency: EUR
1UNH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Health Care Providers & Services industry. 1UNH scores excellent on profitability, but there are some minor concerns on its financial health. 1UNH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1UNH had positive earnings in the past year.
1UNH had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 7.14%, 1UNH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
1UNH has a Return On Equity of 21.93%. This is amongst the best in the industry. 1UNH outperforms 91.67% of its industry peers.
The Return On Invested Capital of 1UNH (8.68%) is better than 83.33% of its industry peers.
1UNH had an Average Return On Invested Capital over the past 3 years of 10.14%. This is above the industry average of 5.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROIC | 8.68% |
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 better Profit Margin (5.39%) than 83.33% of its industry peers.
1UNH's Profit Margin has declined in the last couple of years.
1UNH's Operating Margin of 8.16% is fine compared to the rest of the industry. 1UNH outperforms 75.00% of its industry peers.
1UNH's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1UNH is still creating some value.
The number of shares outstanding for 1UNH has been reduced compared to 1 year ago.
1UNH has less shares outstanding than it did 5 years ago.
1UNH has a worse debt/assets ratio than last year.
2.2 Solvency
1UNH has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as 1UNH would need 3.31 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.31, 1UNH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that 1UNH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, 1UNH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.21%
2.3 Liquidity
1UNH has a Current Ratio of 0.88. 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 Current ratio (0.88) which is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that 1UNH may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, 1UNH perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.46% over the past year.
Measured over the past years, 1UNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
The Revenue has grown by 8.06% 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)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
3.2 Future
The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
1UNH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.
EPS Next Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue Next Year12.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.48%
Revenue Next 5Y9.01%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1UNH is valuated correctly with a Price/Earnings ratio of 15.11.
Based on the Price/Earnings ratio, 1UNH is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
1UNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
The Price/Forward Earnings ratio is 12.76, which indicates a correct valuation of 1UNH.
1UNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1UNH is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, 1UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1UNH is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1UNH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.66 | ||
| EV/EBITDA | 11.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1UNH may justify a higher PE ratio.
PEG (NY)3.59
PEG (5Y)1.16
EPS Next 2Y8.91%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
1UNH has a Yearly Dividend Yield of 2.10%.
1UNH's Dividend Yield is a higher than the industry average which is at 2.73.
Compared to an average S&P500 Dividend Yield of 2.44, 1UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
34.90% of the earnings are spent on dividend by 1UNH. This is a low number and sustainable payout ratio.
The dividend of 1UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.9%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
BIT:1UNH (4/22/2025, 7:00:00 PM)
372.5
-157.7 (-29.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap339.06B
Analysts82.42
Price Target508.54 (36.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend7.22
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-2.18%
Max EPS beat(2)0.29%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-2.18%
Max EPS beat(4)1.12%
EPS beat(8)7
Avg EPS beat(8)1.73%
EPS beat(12)11
Avg EPS beat(12)2.42%
EPS beat(16)15
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.04%
PT rev (1m)-18.85%
PT rev (3m)-17.5%
EPS NQ rev (1m)-17.35%
EPS NQ rev (3m)-16.02%
EPS NY rev (1m)-3.11%
EPS NY rev (3m)-3.53%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)4.37%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 12.76 | ||
| P/S | 0.94 | ||
| P/FCF | 15.66 | ||
| P/OCF | 13.64 | ||
| P/B | 3.81 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 11.47 |
EPS(TTM)24.65
EY6.62%
EPS(NY)29.2
Fwd EY7.84%
FCF(TTM)23.78
FCFY6.38%
OCF(TTM)27.32
OCFY7.33%
SpS397.16
BVpS97.64
TBVpS97.64
PEG (NY)3.59
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROCE | 11.17% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.8% | ||
| ROICexgc | 37.81% | ||
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| GM | N/A | ||
| FCFM | 5.99% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)22.21%
ROE(5y)22.85%
ROIC(3y)10.14%
ROIC(5y)10.16%
ROICexc(3y)11.32%
ROICexc(5y)11.36%
ROICexgc(3y)32.46%
ROICexgc(5y)32.01%
ROCE(3y)13.1%
ROCE(5y)13.1%
ROICexcg growth 3Y-2.11%
ROICexcg growth 5Y-0.12%
ROICexc growth 3Y-2.38%
ROICexc growth 5Y-0.43%
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
F-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 87.77% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.94% | ||
| Profit Quality | 111.07% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC8.21%
ROIC/WACC1.06
Cap/Depr(3y)84.34%
Cap/Depr(5y)80.61%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.86%
Profit Quality(3y)124.43%
Profit Quality(5y)123.8%
High Growth Momentum
Growth
EPS 1Y (TTM)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
EPS Next Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.48%
Revenue Next 5Y9.01%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year18.42%
EBIT Next 3Y12.92%
EBIT Next 5Y12.34%
FCF growth 1Y-28.23%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-24.21%
OCF growth 3Y2.39%
OCF growth 5Y5.37%