ELEVANCE HEALTH INC (ELV) Stock Fundamental Analysis
NYSE:ELV - New York Stock Exchange, Inc. - US0367521038 - Common Stock - Currency: USD
Overall ELV gets a fundamental rating of 4 out of 10. We evaluated ELV against 103 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.
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.
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 4.94%, ELV is doing good in the industry, outperforming 77.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.92%, ELV belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.28%, ELV is doing good in the industry, outperforming 65.05% 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 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 13.92% | ||
| ROIC | 6.28% |
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 3.23%. This is in the better half of the industry: ELV outperforms 66.99% of its industry peers.
ELV's Profit Margin has declined in the last couple of years.
ELV's Operating Margin of 4.97% is fine compared to the rest of the industry. ELV outperforms 60.19% of its industry peers.
In the last couple of years the Operating Margin of ELV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.97% | ||
| PM (TTM) | 3.23% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELV is destroying value.
ELV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ELV has been reduced compared to 5 years ago.
Compared to 1 year ago, ELV has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ELV is 8.32, which is on the high side as it means it would take ELV, 8.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ELV (8.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.67 indicates that ELV is somewhat dependend on debt financing.
The Debt to Equity ratio of ELV (0.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC7.91%
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 been growing slightly by 0.03% over the past year.
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.
ELV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.63%.
The Revenue has been growing by 11.14% on average over the past years. This is quite good.
EPS 1Y (TTM)0.03%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%12.5%
Revenue 1Y (TTM)6.63%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%15.36%
3.2 Future
ELV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.57% yearly.
The Revenue is expected to grow by 8.96% on average over the next years. This is quite good.
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
ELV is valuated reasonably with a Price/Earnings ratio of 10.21.
Compared to the rest of the industry, the Price/Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 88.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. ELV is valued rather cheaply when compared to this.
ELV is valuated reasonably with a Price/Forward Earnings ratio of 8.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELV indicates a rather cheap valuation: ELV is cheaper than 88.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ELV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELV is valued a bit cheaper than the industry average as 66.99% of the companies are valued more expensively.
ELV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.93 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.89
PEG (5Y)0.91
EPS Next 2Y9.72%
EPS Next 3Y11.61%
5. Dividend
5.1 Amount
ELV has a Yearly Dividend Yield of 1.83%.
ELV's Dividend Yield is rather good when compared to the industry average which is at 2.37. ELV pays more dividend than 91.26% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, ELV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of ELV is nicely growing with an annual growth rate of 15.34%!
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
ELV pays out 25.60% 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.
DP25.6%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
350.25
-45.51 (-11.5%)
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 Change7.32%
Market Cap79.13B
Analysts79.29
Price Target503.25 (43.68%)
Short Float %1.11%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend6.55
Dividend Growth(5Y)15.34%
DP25.6%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)0.17%
Max EPS beat(2)4.12%
EPS beat(4)3
Avg EPS beat(4)-2.45%
Min EPS beat(4)-14.2%
Max EPS beat(4)4.12%
EPS beat(8)6
Avg EPS beat(8)-0.5%
EPS beat(12)9
Avg EPS beat(12)0.34%
EPS beat(16)12
Avg EPS beat(16)1.48%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)4.3%
Revenue beat(4)2
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)4.3%
Revenue beat(8)3
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.74%
Revenue beat(16)9
Avg Revenue beat(16)0.66%
PT rev (1m)-0.96%
PT rev (3m)0.13%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 8.82 | ||
| P/S | 0.43 | ||
| P/FCF | 21.93 | ||
| P/OCF | 16.55 | ||
| P/B | 1.86 | ||
| P/tB | 36.93 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)34.3
EY9.79%
EPS(NY)39.69
Fwd EY11.33%
FCF(TTM)15.97
FCFY4.56%
OCF(TTM)21.16
OCFY6.04%
SpS810.53
BVpS188.12
TBVpS9.49
PEG (NY)1.89
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 13.92% | ||
| ROCE | 8.21% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 12.57% | ||
| OM | 4.97% | ||
| PM (TTM) | 3.23% | ||
| GM | N/A | ||
| FCFM | 1.97% |
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-Score3
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 81.74% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.41% | ||
| Profit Quality | 60.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC7.91%
ROIC/WACC0.79
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)0.03%
EPS 3Y8.28%
EPS 5Y11.17%
EPS Q2Q%12.5%
EPS Next Y5.39%
EPS Next 2Y9.72%
EPS Next 3Y11.61%
EPS Next 5Y12.57%
Revenue 1Y (TTM)6.63%
Revenue growth 3Y8.44%
Revenue growth 5Y11.14%
Sales Q2Q%15.36%
Revenue Next Year11.04%
Revenue Next 2Y9.15%
Revenue Next 3Y8.84%
Revenue Next 5Y8.96%
EBIT growth 1Y-7.51%
EBIT growth 3Y0%
EBIT growth 5Y6.19%
EBIT Next Year11.18%
EBIT Next 3Y10.33%
EBIT Next 5Y11.33%
FCF growth 1Y-67.58%
FCF growth 3Y-14.89%
FCF growth 5Y-2.08%
OCF growth 1Y-61.22%
OCF growth 3Y-11.78%
OCF growth 5Y-1.08%