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UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis

NYSE:UNH - New York Stock Exchange, Inc. - US91324P1021 - Common Stock - Currency: USD

332.3  -46.45 (-12.26%)

Fundamental Rating

5

Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 102 industry peers in the Health Care Providers & Services industry. UNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally UNH also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
UNH had a positive operating cash flow in each of the past 5 years.
UNH Yearly Net Income VS EBIT VS OCF VS FCFUNH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

1.2 Ratios

UNH has a better Return On Assets (7.14%) than 88.24% of its industry peers.
UNH has a Return On Equity of 21.93%. This is amongst the best in the industry. UNH outperforms 87.25% of its industry peers.
The Return On Invested Capital of UNH (8.68%) is better than 77.45% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.14%. This is in line with the industry average of 9.38%.
Industry RankSector 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%
UNH Yearly ROA, ROE, ROICUNH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

Looking at the Profit Margin, with a value of 5.39%, UNH is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
In the last couple of years the Profit Margin of UNH has declined.
UNH has a Operating Margin of 8.16%. This is in the better half of the industry: UNH outperforms 75.49% of its industry peers.
In the last couple of years the Operating Margin of UNH has remained more or less at the same level.
Industry RankSector 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
UNH Yearly Profit, Operating, Gross MarginsUNH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

3

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.
UNH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
UNH Yearly Shares OutstandingUNH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
UNH Yearly Total Debt VS Total AssetsUNH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

UNH has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as UNH would need 3.31 years to pay back of all of its debts.
UNH has a Debt to FCF ratio of 3.31. This is in the better half of the industry: UNH outperforms 71.57% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that UNH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, UNH is in line with its industry, outperforming 49.02% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 3.31
Altman-Z N/A
ROIC/WACC1.06
WACC8.17%
UNH Yearly LT Debt VS Equity VS FCFUNH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.3 Liquidity

A Current Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
The Current ratio of UNH (0.88) is worse than 78.43% 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 worse Quick ratio (0.88) than 73.53% of its industry peers.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.88
UNH Yearly Current Assets VS Current LiabilitesUNH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

6

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.
UNH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.06%.
Measured over the past years, UNH shows a quite strong growth in Revenue. The Revenue has been growing by 10.57% on average per year.
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

UNH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 9.01% on average per year.
EPS Next Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue Next Year12.49%
Revenue Next 2Y10.29%
Revenue Next 3Y9.43%
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.
UNH Yearly Revenue VS EstimatesUNH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200B 400B 600B
UNH Yearly EPS VS EstimatesUNH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.88, which indicates a very decent valuation of UNH.
Compared to the rest of the industry, the Price/Earnings ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 82.35% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (24.83), we can say UNH is valued rather cheaply.
The Price/Forward Earnings ratio is 10.03, which indicates a very decent valuation of UNH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 84.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UNH to the average of the S&P500 Index (20.94), we can say UNH is valued rather cheaply.
Industry RankSector Rank
PE 11.88
Fwd PE 10.03
UNH Price Earnings VS Forward Price EarningsUNH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

68.63% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UNH is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.32
EV/EBITDA 10.41
UNH Per share dataUNH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

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)2.83
PEG (5Y)0.91
EPS Next 2Y8.91%
EPS Next 3Y10.24%

7

5. Dividend

5.1 Amount

UNH has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of UNH has falen by -27.65%. 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 2.54, UNH pays a better dividend. On top of this UNH pays more dividend than 92.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, UNH has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.18%

5.2 History

The dividend of UNH is nicely growing with an annual growth rate of 14.73%!
UNH has paid a dividend for at least 10 years, which is a reliable track record.
UNH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.73%
Div Incr Years15
Div Non Decr Years34
UNH Yearly Dividends per shareUNH Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

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%
UNH Yearly Income VS Free CF VS DividendUNH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B
UNH Dividend Payout.UNH Dividend Payout, showing the Payout Ratio.UNH Dividend Payout.PayoutRetained Earnings

UNITEDHEALTH GROUP INC

NYSE:UNH (5/13/2025, 9:40:10 AM)

332.3

-46.45 (-12.26%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-14 2025-07-14/amc
Inst Owners89.44%
Inst Owner Change1.25%
Ins Owners0.17%
Ins Owner Change0.51%
Market Cap302.47B
Analysts82.42
Price Target560.91 (68.8%)
Short Float %0.98%
Short Ratio1.27
Dividend
Industry RankSector Rank
Dividend Yield 2.18%
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years15
Div Non Decr Years34
Ex-Date03-10 2025-03-10 (2.1)
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)-12.74%
PT rev (3m)-13.84%
EPS NQ rev (1m)-17.37%
EPS NQ rev (3m)-17.21%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.23%
Valuation
Industry RankSector Rank
PE 11.88
Fwd PE 10.03
P/S 0.74
P/FCF 12.32
P/OCF 10.72
P/B 3
P/tB 3
EV/EBITDA 10.41
EPS(TTM)27.96
EY8.41%
EPS(NY)33.12
Fwd EY9.97%
FCF(TTM)26.97
FCFY8.12%
OCF(TTM)30.99
OCFY9.33%
SpS450.5
BVpS110.75
TBVpS110.76
PEG (NY)2.83
PEG (5Y)0.91
Profitability
Industry RankSector 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 RankSector 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
WACC8.17%
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 Year12.49%
Revenue Next 2Y10.29%
Revenue Next 3Y9.43%
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%