UNITEDHEALTH GROUP INC (UNH.DE) Stock Fundamental Analysis
FRA:UNH - Deutsche Boerse Ag - US91324P1021 - Common Stock - Currency: EUR
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 24 industry peers in the Health Care Providers & Services industry. UNH has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
Each year in the past 5 years UNH has been profitable.
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 87.50% of the companies in the same industry.
The Return On Equity of UNH (21.93%) is better than 91.67% of its industry peers.
The Return On Invested Capital of UNH (8.68%) is better than 87.50% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.14%. This is above the industry average of 5.60%.
| 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 amongst the best of the industry. UNH outperforms 83.33% of its industry peers.
UNH's Profit Margin has declined in the last couple of years.
The Operating Margin of UNH (8.16%) is better than 75.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNH is still creating some value.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
UNH has a worse debt/assets ratio than last year.
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 has a Debt to FCF ratio of 3.31. This is amongst the best in the industry. UNH outperforms 87.50% 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.
UNH has a better Debt to Equity ratio (0.71) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.18%
2.3 Liquidity
A Current Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
UNH has a Current ratio of 0.88. This is comparable to the rest of the industry: UNH outperforms 54.17% 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 of 0.88. This is comparable to the rest of the industry: UNH outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.46% over the past year.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
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 Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue Next Year12.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.48%
Revenue Next 5Y9.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.30, which indicates a correct valuation of UNH.
UNH's Price/Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 70.83% of the companies in the same industry.
UNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
UNH is valuated correctly with a Price/Forward Earnings ratio of 12.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 79.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNH.
UNH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.82 | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UNH may justify a higher PE ratio.
PEG (NY)3.4
PEG (5Y)1.09
EPS Next 2Y8.91%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.10%.
The stock price of UNH dropped by -30.14% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.73, UNH pays a bit more dividend than its industry peers.
UNH's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 2Y8.91%
EPS Next 3Y10.24%
FRA:UNH (5/6/2025, 3:50:23 PM)
352.45
-5.6 (-1.56%)
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 Cap320.81B
Analysts82.42
Price Target507.86 (44.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend7.22
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)-13.52%
PT rev (3m)-18.19%
EPS NQ rev (1m)-17.51%
EPS NQ rev (3m)-17.45%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.07 | ||
| P/S | 0.89 | ||
| P/FCF | 14.82 | ||
| P/OCF | 12.9 | ||
| P/B | 3.61 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 11.07 |
EPS(TTM)24.65
EY6.99%
EPS(NY)29.2
Fwd EY8.28%
FCF(TTM)23.78
FCFY6.75%
OCF(TTM)27.32
OCFY7.75%
SpS397.16
BVpS97.64
TBVpS97.64
PEG (NY)3.4
PEG (5Y)1.09
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
WACC8.18%
ROIC/WACC1.06
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 Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.5%
Revenue Next 2Y10.26%
Revenue Next 3Y9.48%
Revenue Next 5Y9.01%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year18.42%
EBIT Next 3Y12.92%
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%