ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELV - US0367521038 - Common Stock
338.52 USD
+2.25 (+0.67%)
339.51 USD
+0.99 (+0.29%)
We assign a fundamental rating of 4 out of 10 to ELV. ELV was compared to 101 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of ELV while its profitability can be described as average. ELV has a decent growth rate and is not valued too expensively. ELV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ELV had positive earnings in the past year.
ELV had a positive operating cash flow in the past year.
In the past 5 years ELV has always been profitable.
Each year in the past 5 years ELV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ELV (4.51%) is better than 74.26% of its industry peers.
ELV has a Return On Equity of 12.59%. This is in the better half of the industry: ELV outperforms 78.22% of its industry peers.
ELV has a Return On Invested Capital of 5.60%. This is comparable to the rest of the industry: ELV outperforms 59.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELV is below the industry average of 9.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.59% | ||
| ROIC | 5.6% |
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's Profit Margin of 2.84% is fine compared to the rest of the industry. ELV outperforms 65.35% of its industry peers.
In the last couple of years the Profit Margin of ELV has declined.
ELV has a Operating Margin (4.35%) which is in line with its industry peers.
ELV's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, ELV has less shares outstanding
Compared to 5 years ago, ELV has less shares outstanding
Compared to 1 year ago, ELV has a worse debt to assets ratio.
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.
The Debt to FCF ratio of ELV (8.63) is comparable to the rest of the industry.
ELV has a Debt/Equity ratio of 0.71. This is a neutral value indicating ELV is somewhat dependend on debt financing.
The Debt to Equity ratio of ELV (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ELV have decreased strongly by -11.71% in the last year.
ELV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.17% yearly.
The Revenue has grown by 11.96% in the past year. This is quite good.
The Revenue has been growing by 11.14% on average over the past years. This is quite good.
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
ELV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
ELV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y-8.18%
EPS Next 2Y-8.53%
EPS Next 3Y-1.23%
EPS Next 5Y7.78%
Revenue Next Year13.06%
Revenue Next 2Y8.03%
Revenue Next 3Y7.01%
Revenue Next 5Y4.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.03, the valuation of ELV can be described as reasonable.
Based on the Price/Earnings ratio, ELV is valued cheaply inside the industry as 90.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ELV is valued rather cheaply.
ELV is valuated correctly with a Price/Forward Earnings ratio of 12.27.
85.15% of the companies in the same industry are more expensive than ELV, based on the Price/Forward Earnings ratio.
ELV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than 74.26% of the companies in the same industry.
64.36% of the companies in the same industry are more expensive than ELV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.49 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-8.53%
EPS Next 3Y-1.23%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 2.18%.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.60. ELV pays more dividend than 91.09% of the companies in the same industry.
ELV's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of ELV is nicely growing with an annual growth rate of 15.34%!
ELV has paid a dividend for at least 10 years, which is 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
27.56% of the earnings are spent on dividend by ELV. This is a low number and 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-8.53%
EPS Next 3Y-1.23%
338.52
+2.25 (+0.67%)
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 Change2.02%
Market Cap76.23B
Revenue(TTM)194.82B
Net Income(TTM)5.53B
Analysts75.17
Price Target391.07 (15.52%)
Short Float %1.55%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)4.69%
PT rev (3m)5.23%
EPS NQ rev (1m)-22.55%
EPS NQ rev (3m)-22.67%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.27 | ||
| P/S | 0.39 | ||
| P/FCF | 20.49 | ||
| P/OCF | 15.67 | ||
| P/B | 1.73 | ||
| P/tB | 18.26 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)30.68
EY9.06%
EPS(NY)27.58
Fwd EY8.15%
FCF(TTM)16.52
FCFY4.88%
OCF(TTM)21.61
OCFY6.38%
SpS865.17
BVpS195.19
TBVpS18.54
PEG (NY)N/A
PEG (5Y)0.99
Graham Number367.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.59% | ||
| ROCE | 7.32% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 10.93% | ||
| 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
WACC8.32%
ROIC/WACC0.67
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-8.18%
EPS Next 2Y-8.53%
EPS Next 3Y-1.23%
EPS Next 5Y7.78%
Revenue 1Y (TTM)11.96%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%12%
Revenue Next Year13.06%
Revenue Next 2Y8.03%
Revenue Next 3Y7.01%
Revenue Next 5Y4.62%
EBIT growth 1Y-10.69%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year-1.57%
EBIT Next 3Y2.35%
EBIT Next 5Y8.31%
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%
ELEVANCE HEALTH INC / ELV FAQ
Can you provide the ChartMill fundamental rating for ELEVANCE HEALTH INC?
ChartMill assigns a fundamental rating of 4 / 10 to ELV.
What is the valuation status for ELV stock?
ChartMill assigns a valuation rating of 6 / 10 to ELEVANCE HEALTH INC (ELV). This can be considered as Fairly Valued.
What is the profitability of ELV stock?
ELEVANCE HEALTH INC (ELV) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ELV stock?
The Earnings per Share (EPS) of ELEVANCE HEALTH INC (ELV) is expected to decline by -8.18% in the next year.
Is the dividend of ELEVANCE HEALTH INC sustainable?
The dividend rating of ELEVANCE HEALTH INC (ELV) is 7 / 10 and the dividend payout ratio is 27.56%.