ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
NYSE:ELV - New York Stock Exchange, Inc. - US0367521038 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ELV. ELV was compared to 103 industry peers in the Health Care Providers & Services industry. ELV has a medium profitability rating, but doesn't score so well on its financial health evaluation. ELV is not valued too expensively and it also shows a decent growth rate. Finally ELV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ELV was profitable.
ELV had a positive operating cash flow in the past year.
ELV had positive earnings in each of the past 5 years.
ELV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.40%, ELV is doing good in the industry, outperforming 76.70% of the companies in the same industry.
The Return On Equity of ELV (12.26%) is better than 76.70% of its industry peers.
With a decent Return On Invested Capital value of 5.90%, ELV is doing good in the industry, outperforming 61.16% of the companies in the same industry.
ELV had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 9.72%.
| 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
With a decent Profit Margin value of 2.83%, ELV is doing good in the industry, outperforming 65.05% 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 (4.60%) 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 | 4.6% | ||
| 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.
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
Compared to 1 year ago, ELV has a worse debt to assets ratio.
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.
The Debt to FCF ratio of ELV (5.70) is better than 60.19% of its industry peers.
ELV has a Debt/Equity ratio of 0.65. This is a neutral value indicating 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 55.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC8.52%
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.
Looking at the last year, ELV shows a quite strong growth in Revenue. The Revenue has grown by 10.21% in the last year.
The Revenue has been growing by 11.14% on average over the past years. This is quite good.
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 12.57% 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 5Y12.57%
Revenue Next Year11.04%
Revenue Next 2Y9.15%
Revenue Next 3Y8.84%
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 stable.
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
Based on the Price/Earnings ratio of 8.89, the valuation of ELV can be described as reasonable.
Based on the Price/Earnings ratio, ELV is valued cheaper than 90.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.61. ELV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.40, the valuation of ELV can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 92.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, ELV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than 70.87% 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 78.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
ELV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.65
PEG (5Y)0.8
EPS Next 2Y9.72%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.44%, ELV has a reasonable but not impressive dividend return.
In the last 3 months the price of ELV has falen by -28.40%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.61, ELV pays a better dividend. On top of this ELV pays more dividend than 92.23% of the companies listed in the same industry.
ELV's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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 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
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%
293.55
+4.82 (+1.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.69%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner Change9.17%
Market Cap66.10B
Analysts79.29
Price Target479.36 (63.3%)
Short Float %1.21%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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)-4.75%
PT rev (3m)-5.66%
EPS NQ rev (1m)-37.53%
EPS NQ rev (3m)-37.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.35 | ||
| P/FCF | 12.49 | ||
| P/OCF | 10.31 | ||
| P/B | 1.51 | ||
| P/tB | 17.11 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)33.02
EY11.25%
EPS(NY)39.69
Fwd EY13.52%
FCF(TTM)23.5
FCFY8.01%
OCF(TTM)28.46
OCFY9.7%
SpS840.46
BVpS194.16
TBVpS17.16
PEG (NY)1.65
PEG (5Y)0.8
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
WACC8.52%
ROIC/WACC0.69
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 5Y12.57%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%14.34%
Revenue Next Year11.04%
Revenue Next 2Y9.15%
Revenue Next 3Y8.84%
Revenue Next 5Y8.96%
EBIT growth 1Y-14.33%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year11.18%
EBIT Next 3Y10.33%
EBIT Next 5Y11.33%
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%