ELEVANCE HEALTH INC (ELV)
US0367521038 - Common Stock
ELV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 117 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.
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.
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
ELV has a Return On Assets of 5.58%. This is amongst the best in the industry. ELV outperforms 82.76% of its industry peers.
With an excellent Return On Equity value of 15.38%, ELV belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
The Return On Invested Capital of ELV (7.38%) is better than 76.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELV is in line with the industry average of 8.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 15.38% | ||
| ROIC | 7.38% |
ROA(3y)5.83%
ROA(5y)5.8%
ROE(3y)16.14%
ROE(5y)15.47%
ROIC(3y)7.41%
ROIC(5y)7.44%
1.3 Margins
With a decent Profit Margin value of 3.64%, ELV is doing good in the industry, outperforming 78.45% of the companies in the same industry.
ELV's Profit Margin has declined in the last couple of years.
ELV has a better Operating Margin (5.72%) than 70.69% of its industry peers.
ELV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 3.64% | ||
| GM | N/A |
OM growth 3Y-4.32%
OM growth 5Y-2.71%
PM growth 3Y-2.34%
PM growth 5Y-3.01%
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.
ELV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ELV has an improved debt to assets ratio.
2.2 Solvency
ELV has a debt to FCF ratio of 11.52. This is a negative value and a sign of low solvency as ELV would need 11.52 years to pay back of all of its debts.
The Debt to FCF ratio of ELV (11.52) is comparable to the rest of the industry.
ELV has a Debt/Equity ratio of 0.58. This is a neutral value indicating ELV is somewhat dependend on debt financing.
ELV has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 11.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.89
WACC8.26%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.32% over the past year.
The Earnings Per Share has been growing by 15.79% on average over the past years. This is quite good.
ELV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.89%.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
EPS 1Y (TTM)13.32%
EPS 3Y13.88%
EPS 5Y15.79%
EPS growth Q2Q12.47%
Revenue 1Y (TTM)6.89%
Revenue growth 3Y12.03%
Revenue growth 5Y13.21%
Revenue growth Q2Q0.96%
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 12.27% on average per year.
ELV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.96% yearly.
EPS Next Y13.27%
EPS Next 2Y12.57%
EPS Next 3Y12.64%
EPS Next 5Y12.27%
Revenue Next Year1.27%
Revenue Next 2Y3.52%
Revenue Next 3Y4.53%
Revenue Next 5Y7.96%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 15.57 indicates a correct valuation of ELV.
Compared to the rest of the industry, the Price/Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 84.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, ELV is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.72, which indicates a correct valuation of ELV.
Based on the Price/Forward Earnings ratio, ELV is valued cheaply inside the industry as 87.93% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.67. ELV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELV indicates a somewhat cheap valuation: ELV is cheaper than 69.83% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ELV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.07 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
ELV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ELV has a very decent profitability rating, which may justify a higher PE ratio.
ELV's earnings are expected to grow with 12.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)0.99
EPS Next 2Y12.57%
EPS Next 3Y12.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, ELV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.77, ELV pays a better dividend. On top of this ELV pays more dividend than 85.34% of the companies listed in the same industry.
With a Dividend Yield of 1.22, ELV pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of ELV grows each year by 14.38%, which is quite nice.
ELV has been paying a dividend for at least 10 years, so it has a reliable track record.
As ELV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.38%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ELV pays out 22.79% 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.
DP22.79%
EPS Next 2Y12.57%
EPS Next 3Y12.64%
ELEVANCE HEALTH INC
NYSE:ELV (4/24/2024, 7:04:01 PM)
After market: 533.73 0 (0%)533.73
+0.81 (+0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap124.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 12.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.17
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 15.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.72% | ||
| PM (TTM) | 3.64% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.32%
EPS 3Y13.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.89%
Revenue growth 3Y12.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y