ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
NYSE:ELV - New York Stock Exchange, Inc. - US0367521038 - Common Stock - Currency: USD
Taking everything into account, ELV scores 5 out of 10 in our fundamental rating. ELV was compared to 104 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ELV. 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.
ELV had positive earnings in each of the past 5 years.
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 75.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.26%, ELV is in the better half of the industry, outperforming 77.88% of the companies in the same industry.
The Return On Invested Capital of ELV (5.90%) is better than 62.50% of its industry peers.
ELV had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 9.61%.
| 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 64.42% of the companies in the same industry.
ELV's Profit Margin has declined in the last couple of years.
ELV has a Operating Margin of 4.60%. This is comparable to the rest of the industry: ELV outperforms 59.62% 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
ELV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ELV has less shares outstanding
ELV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ELV is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ELV is 5.70, which is a neutral value as it means it would take ELV, 5.70 years of fcf income to pay off all of its debts.
ELV's Debt to FCF ratio of 5.70 is fine compared to the rest of the industry. ELV outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ELV is somewhat dependend on debt financing.
ELV's Debt to Equity ratio of 0.65 is in line compared to the rest of the industry. ELV outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC7.65%
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 by -6.64% in the last year.
The Earnings Per Share has been growing by 11.17% on average over the past years. This is quite good.
The Revenue has grown by 10.21% in the past year. This is quite good.
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)-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
Based on estimates for the next years, ELV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
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 Y5.39%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
EPS Next 5Y8.79%
Revenue Next Year12.17%
Revenue Next 2Y8.92%
Revenue Next 3Y8.04%
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
A Price/Earnings ratio of 9.39 indicates a reasonable valuation of ELV.
Based on the Price/Earnings ratio, ELV is valued cheaply inside the industry as 91.35% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, ELV is valued rather cheaply.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of ELV.
92.31% of the companies in the same industry are more expensive than ELV, based on the Price/Forward Earnings ratio.
ELV is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
75.96% of the companies in the same industry are more expensive than ELV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 82.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.74
PEG (5Y)0.84
EPS Next 2Y9.72%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, ELV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, ELV pays a better dividend. On top of this ELV pays more dividend than 91.35% of the companies listed in the same industry.
ELV's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of ELV grows each year by 15.34%, which is quite nice.
ELV has been paying a dividend for at least 10 years, so it has 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
28.40% 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.
DP28.4%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
310
-2 (-0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change9.3%
Market Cap69.81B
Analysts76.43
Price Target384.13 (23.91%)
Short Float %1.26%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)-23.67%
PT rev (3m)-24.41%
EPS NQ rev (1m)-42.55%
EPS NQ rev (3m)-42.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.37 | ||
| P/FCF | 13.19 | ||
| P/OCF | 10.89 | ||
| P/B | 1.6 | ||
| P/tB | 18.07 | ||
| EV/EBITDA | 8.99 |
EPS(TTM)33.02
EY10.65%
EPS(NY)39.69
Fwd EY12.8%
FCF(TTM)23.5
FCFY7.58%
OCF(TTM)28.46
OCFY9.18%
SpS840.46
BVpS194.16
TBVpS17.16
PEG (NY)1.74
PEG (5Y)0.84
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
WACC7.65%
ROIC/WACC0.77
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 Y5.39%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
EPS Next 5Y8.79%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
Revenue Next Year12.17%
Revenue Next 2Y8.92%
Revenue Next 3Y8.04%
Revenue Next 5Y8.96%
EBIT growth 1Y-14.33%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year-2.13%
EBIT Next 3Y3.18%
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%