ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
USA - NYSE:ELV - US0367521038 - Common Stock
332.66 USD
+9.54 (+2.95%)
332.768 USD
+0.11 (+0.03%)
Taking everything into account, ELV scores 4 out of 10 in our fundamental rating. ELV was compared to 101 industry peers in the Health Care Providers & Services industry. While ELV is still in line with the averages on profitability rating, there are concerns on its financial health. ELV has a correct valuation and a medium growth rate. Finally ELV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ELV had positive earnings in the past year.
In the past year ELV had a positive cash flow from operations.
Each year in the past 5 years ELV has been profitable.
In the past 5 years ELV always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.40%, ELV is doing good in the industry, outperforming 75.25% of the companies in the same industry.
ELV has a Return On Equity of 12.26%. This is in the better half of the industry: ELV outperforms 77.23% of its industry peers.
ELV has a better Return On Invested Capital (5.90%) than 62.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELV is below the industry average of 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 12.26% | ||
| ROIC | 5.9% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.9%
ROIC(5y)7.19%
1.3 Margins
Looking at the Profit Margin, with a value of 2.83%, ELV is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
In the last couple of years the Profit Margin of ELV has declined.
ELV has a Operating Margin of 4.60%. This is comparable to the rest of the industry: ELV outperforms 59.41% of its industry peers.
In the last couple of years the Operating Margin of ELV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 2.83% | ||
| GM | N/A |
OM growth 3Y-7.78%
OM growth 5Y-4.45%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELV is destroying value.
The number of shares outstanding for ELV has been reduced compared to 1 year ago.
Compared to 5 years ago, ELV has less shares outstanding
The debt/assets ratio for ELV is higher compared to a year ago.
2.2 Solvency
ELV has a debt to FCF ratio of 5.70. This is a neutral value as ELV would need 5.70 years to pay back of all of its debts.
ELV's Debt to FCF ratio of 5.70 is fine compared to the rest of the industry. ELV outperforms 64.36% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ELV is somewhat dependend on debt financing.
ELV has a Debt to Equity ratio of 0.65. This is comparable to the rest of the industry: ELV outperforms 54.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.72
WACC8.22%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ELV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.64%.
The Earnings Per Share has been growing by 11.17% on average over the past years. This is quite good.
ELV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.21%.
ELV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.14% yearly.
EPS 1Y (TTM)-6.64%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-12.65%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.96% on average over the next years. This is quite good.
EPS Next Y-8.43%
EPS Next 2Y-2.2%
EPS Next 3Y3%
EPS Next 5Y8.79%
Revenue Next Year12.33%
Revenue Next 2Y8.83%
Revenue Next 3Y7.8%
Revenue Next 5Y8.96%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.07, the valuation of ELV can be described as very reasonable.
91.09% of the companies in the same industry are more expensive than ELV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ELV to the average of the S&P500 Index (27.79), we can say ELV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.55, the valuation of ELV can be described as reasonable.
Based on the Price/Forward Earnings ratio, ELV is valued cheaper than 88.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ELV to the average of the S&P500 Index (23.21), we can say ELV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than the industry average as 77.23% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 80.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 9.24 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-2.2%
EPS Next 3Y3%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, ELV pays a better dividend. On top of this ELV pays more dividend than 92.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ELV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of ELV is nicely growing with an annual growth rate of 15.34%!
ELV has been paying a dividend for at least 10 years, so it has a reliable track record.
ELV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
ELV pays out 28.40% of its income as dividend. This is a sustainable payout ratio.
ELV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.4%
EPS Next 2Y-2.2%
EPS Next 3Y3%
332.66
+9.54 (+2.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner Change2.81%
Market Cap74.91B
Analysts76.43
Price Target373.55 (12.29%)
Short Float %1.64%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend6.55
Dividend Growth(5Y)15.34%
DP28.4%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.93%
Min EPS beat(2)-2.26%
Max EPS beat(2)4.12%
EPS beat(4)2
Avg EPS beat(4)-3.04%
Min EPS beat(4)-14.2%
Max EPS beat(4)4.12%
EPS beat(8)5
Avg EPS beat(8)-1%
EPS beat(12)8
Avg EPS beat(12)-0.08%
EPS beat(16)11
Avg EPS beat(16)0.72%
Revenue beat(2)2
Avg Revenue beat(2)2.87%
Min Revenue beat(2)1.45%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)4.3%
Revenue beat(8)3
Avg Revenue beat(8)0.42%
Revenue beat(12)6
Avg Revenue beat(12)0.84%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)0.52%
PT rev (3m)-25.77%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-42.72%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-13.11%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.4 | ||
| P/FCF | 14.16 | ||
| P/OCF | 11.69 | ||
| P/B | 1.71 | ||
| P/tB | 19.39 | ||
| EV/EBITDA | 9.24 |
EPS(TTM)33.02
EY9.93%
EPS(NY)31.53
Fwd EY9.48%
FCF(TTM)23.5
FCFY7.06%
OCF(TTM)28.46
OCFY8.56%
SpS840.46
BVpS194.16
TBVpS17.16
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 12.26% | ||
| ROCE | 7.72% | ||
| ROIC | 5.9% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 11.77% | ||
| OM | 4.6% | ||
| PM (TTM) | 2.83% | ||
| GM | N/A | ||
| FCFM | 2.8% |
ROA(3y)5.45%
ROA(5y)5.58%
ROE(3y)15.32%
ROE(5y)15.33%
ROIC(3y)6.9%
ROIC(5y)7.19%
ROICexc(3y)7.45%
ROICexc(5y)7.72%
ROICexgc(3y)13.9%
ROICexgc(5y)14.63%
ROCE(3y)9.03%
ROCE(5y)9.4%
ROICexcg growth 3Y-5.49%
ROICexcg growth 5Y-3.16%
ROICexc growth 3Y-5.02%
ROICexc growth 5Y-2.23%
OM growth 3Y-7.78%
OM growth 5Y-4.45%
PM growth 3Y-8.42%
PM growth 5Y-6.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 75.47% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.96% | ||
| Profit Quality | 98.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.22%
ROIC/WACC0.72
Cap/Depr(3y)77.74%
Cap/Depr(5y)81.03%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.76%
Profit Quality(3y)103.66%
Profit Quality(5y)128.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.64%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-12.65%
EPS Next Y-8.43%
EPS Next 2Y-2.2%
EPS Next 3Y3%
EPS Next 5Y8.79%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
Revenue Next Year12.33%
Revenue Next 2Y8.83%
Revenue Next 3Y7.8%
Revenue Next 5Y8.96%
EBIT growth 1Y-14.33%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year-1.57%
EBIT Next 3Y2.35%
EBIT Next 5Y8.53%
FCF growth 1Y-49.94%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-45.8%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%