UNITEDHEALTH GROUP INC (UNH.DE) Stock Fundamental Analysis
FRA:UNH - Deutsche Boerse Ag - US91324P1021 - Common Stock - Currency: EUR
UNH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Health Care Providers & Services industry. UNH has only an average score on both its financial health and profitability. UNH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UNH had positive earnings in the past year.
In the past year UNH had a positive cash flow from operations.
UNH had positive earnings in each of the past 5 years.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.14%, UNH belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
The Return On Equity of UNH (21.93%) is better than 88.00% of its industry peers.
The Return On Invested Capital of UNH (8.68%) is better than 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNH is above the industry average of 6.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROIC | 8.68% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)22.21%
ROE(5y)22.85%
ROIC(3y)10.14%
ROIC(5y)10.16%
1.3 Margins
UNH's Profit Margin of 5.39% is fine compared to the rest of the industry. UNH outperforms 76.00% of its industry peers.
In the last couple of years the Profit Margin of UNH has declined.
UNH has a better Operating Margin (8.16%) than 68.00% of its industry peers.
UNH's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| GM | N/A |
OM growth 3Y-1.09%
OM growth 5Y-0.16%
PM growth 3Y-15.71%
PM growth 5Y-8.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
UNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
Compared to 5 years ago, UNH has less shares outstanding
Compared to 1 year ago, UNH has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UNH is 3.31, which is a good value as it means it would take UNH, 3.31 years of fcf income to pay off all of its debts.
UNH's Debt to FCF ratio of 3.31 is amongst the best of the industry. UNH outperforms 88.00% of its industry peers.
UNH has a Debt/Equity ratio of 0.71. This is a neutral value indicating UNH is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.71, UNH is doing good in the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.07%
2.3 Liquidity
UNH has a Current Ratio of 0.88. This is a bad value and indicates that UNH is not financially healthy enough and could expect problems in meeting its short term obligations.
UNH's Current ratio of 0.88 is in line compared to the rest of the industry. UNH outperforms 48.00% of its industry peers.
A Quick Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
UNH has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
UNH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 8.06% in the last year.
UNH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.57% yearly.
EPS 1Y (TTM)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
3.2 Future
Based on estimates for the next years, UNH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
UNH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.
EPS Next Y-12.93%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
EPS Next 5Y12.48%
Revenue Next Year12.38%
Revenue Next 2Y9.78%
Revenue Next 3Y9.03%
Revenue Next 5Y9.01%
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
A Price/Earnings ratio of 10.77 indicates a reasonable valuation of UNH.
Based on the Price/Earnings ratio, UNH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.25. UNH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.78, which indicates a very decent valuation of UNH.
Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. UNH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UNH is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.12 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
UNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y0.03%
EPS Next 3Y4.28%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.77%.
In the last 3 months the price of UNH has falen by -41.32%. 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 2.80, UNH pays a better dividend. On top of this UNH pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
Dividend Growth(5Y)14.73%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
UNH pays out 34.90% of its income as dividend. This is a sustainable payout ratio.
UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.9%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
FRA:UNH (5/30/2025, 7:00:00 PM)
266.9
+4.55 (+1.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap242.12B
Analysts82.42
Price Target496.12 (85.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend7.25
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-2.18%
Max EPS beat(2)0.29%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-2.18%
Max EPS beat(4)1.12%
EPS beat(8)7
Avg EPS beat(8)1.73%
EPS beat(12)11
Avg EPS beat(12)2.42%
EPS beat(16)15
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.04%
PT rev (1m)-16.71%
PT rev (3m)-20.08%
EPS NQ rev (1m)-28.46%
EPS NQ rev (3m)-31.57%
EPS NY rev (1m)-16.44%
EPS NY rev (3m)-19.04%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.67 | ||
| P/FCF | 11.12 | ||
| P/OCF | 9.68 | ||
| P/B | 2.71 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)24.79
EY9.29%
EPS(NY)24.76
Fwd EY9.28%
FCF(TTM)23.99
FCFY8.99%
OCF(TTM)27.56
OCFY10.33%
SpS400.7
BVpS98.51
TBVpS98.51
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROCE | 11.17% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.8% | ||
| ROICexgc | 37.81% | ||
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| GM | N/A | ||
| FCFM | 5.99% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)22.21%
ROE(5y)22.85%
ROIC(3y)10.14%
ROIC(5y)10.16%
ROICexc(3y)11.32%
ROICexc(5y)11.36%
ROICexgc(3y)32.46%
ROICexgc(5y)32.01%
ROCE(3y)13.1%
ROCE(5y)13.1%
ROICexcg growth 3Y-2.11%
ROICexcg growth 5Y-0.12%
ROICexc growth 3Y-2.38%
ROICexc growth 5Y-0.43%
OM growth 3Y-1.09%
OM growth 5Y-0.16%
PM growth 3Y-15.71%
PM growth 5Y-8.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 87.77% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.94% | ||
| Profit Quality | 111.07% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC8.07%
ROIC/WACC1.08
Cap/Depr(3y)84.34%
Cap/Depr(5y)80.61%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.86%
Profit Quality(3y)124.43%
Profit Quality(5y)123.8%
High Growth Momentum
Growth
EPS 1Y (TTM)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
EPS Next Y-12.93%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
EPS Next 5Y12.48%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.38%
Revenue Next 2Y9.78%
Revenue Next 3Y9.03%
Revenue Next 5Y9.01%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-3.21%
EBIT Next 3Y6.93%
EBIT Next 5Y12.34%
FCF growth 1Y-28.23%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-24.21%
OCF growth 3Y2.39%
OCF growth 5Y5.37%