ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
USA - NYSE:ELV - US0367521038 - Common Stock
346.28 USD
+1.07 (+0.31%)
346.15 USD
-0.13 (-0.04%)
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 decent growth rate and is not valued too expensively. Finally ELV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ELV was profitable.
In the past year ELV had a positive cash flow from operations.
In the past 5 years ELV has always been profitable.
ELV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.51%, ELV is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
With a decent Return On Equity value of 12.59%, ELV is doing good in the industry, outperforming 77.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.32%, ELV is in line with its industry, outperforming 59.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ELV is below the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.59% | ||
| ROIC | 5.32% |
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
ELV has a Profit Margin of 2.84%. This is in the better half of the industry: ELV outperforms 65.35% of its industry peers.
ELV's Profit Margin has declined in the last couple of years.
ELV has a Operating Margin (4.35%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ELV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.35% | ||
| PM (TTM) | 2.84% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELV is destroying value.
The number of shares outstanding for ELV has been reduced compared to 1 year ago.
The number of shares outstanding for ELV has been reduced compared to 5 years ago.
ELV has a worse debt/assets ratio than last year.
2.2 Solvency
ELV has a debt to FCF ratio of 8.63. This is a slightly negative value and a sign of low solvency as ELV would need 8.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.63, ELV perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that ELV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, ELV perfoms like the industry average, outperforming 47.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC7.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ELV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.71%.
Measured over the past years, ELV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.17% on average per year.
Looking at the last year, ELV shows a quite strong growth in Revenue. The Revenue has grown by 11.96% in the last year.
Measured over the past years, ELV shows a quite strong growth in Revenue. The Revenue has been growing by 11.14% on average per year.
EPS 1Y (TTM)-11.71%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-27.96%
Revenue 1Y (TTM)11.96%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%12%
3.2 Future
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
ELV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.96% yearly.
EPS Next Y-8.41%
EPS Next 2Y-3.9%
EPS Next 3Y1.64%
EPS Next 5Y7.89%
Revenue Next Year12.47%
Revenue Next 2Y8.69%
Revenue Next 3Y7.74%
Revenue Next 5Y8.96%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ELV is valuated reasonably with a Price/Earnings ratio of 11.29.
Based on the Price/Earnings ratio, ELV is valued cheaply inside the industry as 88.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.67, ELV is valued rather cheaply.
The Price/Forward Earnings ratio is 11.37, which indicates a very decent valuation of ELV.
ELV's Price/Forward Earnings ratio is rather cheap when compared to the industry. ELV is cheaper than 84.16% of the companies in the same industry.
ELV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than 72.28% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELV indicates a somewhat cheap valuation: ELV is cheaper than 64.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-3.9%
EPS Next 3Y1.64%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 1.98%.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.45. ELV pays more dividend than 90.10% of the companies in the same industry.
ELV's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of ELV grows each year by 15.34%, which is quite nice.
ELV has paid a dividend for at least 10 years, which is a reliable track record.
ELV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.34%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
ELV pays out 27.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of ELV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.56%
EPS Next 2Y-3.9%
EPS Next 3Y1.64%
346.28
+1.07 (+0.31%)
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 Change2.2%
Market Cap77.98B
Revenue(TTM)194.82B
Net Income(TTM)5.53B
Analysts76.43
Price Target373.55 (7.88%)
Short Float %1.64%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend6.55
Dividend Growth(5Y)15.34%
DP27.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.38%
Min EPS beat(2)-2.26%
Max EPS beat(2)21.02%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-2.26%
Max EPS beat(4)21.02%
EPS beat(8)5
Avg EPS beat(8)0.95%
EPS beat(12)8
Avg EPS beat(12)1.31%
EPS beat(16)11
Avg EPS beat(16)1.68%
Revenue beat(2)2
Avg Revenue beat(2)0.95%
Min Revenue beat(2)0.45%
Max Revenue beat(2)1.45%
Revenue beat(4)3
Avg Revenue beat(4)1.37%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)4.3%
Revenue beat(8)4
Avg Revenue beat(8)0.64%
Revenue beat(12)6
Avg Revenue beat(12)0.78%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)0%
PT rev (3m)-22.07%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-42.5%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-13.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.4 | ||
| P/FCF | 20.96 | ||
| P/OCF | 16.02 | ||
| P/B | 1.77 | ||
| P/tB | 18.68 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)30.68
EY8.86%
EPS(NY)30.45
Fwd EY8.79%
FCF(TTM)16.52
FCFY4.77%
OCF(TTM)21.61
OCFY6.24%
SpS865.17
BVpS195.19
TBVpS18.54
PEG (NY)N/A
PEG (5Y)1.01
Graham Number367.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.59% | ||
| ROCE | 6.96% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 9.91% | ||
| OM | 4.35% | ||
| PM (TTM) | 2.84% | ||
| GM | N/A | ||
| FCFM | 1.91% |
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%
ROICexgc growth 3Y-5.49%
ROICexgc 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-Score4
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 74.45% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.59% | ||
| Profit Quality | 67.25% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC7.83%
ROIC/WACC0.68
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)-11.71%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%-27.96%
EPS Next Y-8.41%
EPS Next 2Y-3.9%
EPS Next 3Y1.64%
EPS Next 5Y7.89%
Revenue 1Y (TTM)11.96%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%12%
Revenue Next Year12.47%
Revenue Next 2Y8.69%
Revenue Next 3Y7.74%
Revenue Next 5Y8.96%
EBIT growth 1Y-10.69%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year-1.57%
EBIT Next 3Y2.35%
EBIT Next 5Y8.53%
FCF growth 1Y-54.88%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-48.85%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%