UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
NYSE:UNH - New York Stock Exchange, Inc. - US91324P1021 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 102 industry peers in the Health Care Providers & Services industry. While UNH is still in line with the averages on profitability rating, there are concerns on its financial health. UNH may be a bit undervalued, certainly considering the very reasonable score on growth UNH also has an excellent dividend rating.
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.
In the past 5 years UNH has always been profitable.
Each year in the past 5 years UNH had a positive operating cash flow.
1.2 Ratios
UNH has a Return On Assets of 7.14%. This is amongst the best in the industry. UNH outperforms 87.25% of its industry peers.
The Return On Equity of UNH (21.93%) is better than 89.22% of its industry peers.
With a decent Return On Invested Capital value of 8.68%, UNH is doing good in the industry, outperforming 77.45% of the companies in the same industry.
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 9.62%.
| 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 has a Profit Margin of 5.39%. This is in the better half of the industry: UNH outperforms 78.43% of its industry peers.
UNH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.16%, UNH is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNH is creating some value.
UNH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNH has less shares outstanding
The debt/assets ratio for UNH is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 3.31, UNH is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.71. This is a neutral value indicating UNH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, UNH perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.16%
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 has a Current ratio of 0.88. This is in the lower half of the industry: UNH underperforms 74.51% of its industry peers.
A Quick Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
The Quick ratio of UNH (0.88) is worse than 68.63% 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.
Measured over the past years, UNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
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
UNH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.37% yearly.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y-12.93%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
EPS Next 5Y8.37%
Revenue Next Year12.32%
Revenue Next 2Y9.49%
Revenue Next 3Y8.71%
Revenue Next 5Y8.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 10.97, which indicates a very decent valuation of UNH.
UNH's Price/Earnings ratio is rather cheap when compared to the industry. UNH is cheaper than 88.24% of the companies in the same industry.
UNH is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.98, the valuation of UNH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, UNH is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UNH to the average of the S&P500 Index (22.13), we can say UNH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 73.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UNH is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 8.8 |
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)0.84
EPS Next 2Y0.03%
EPS Next 3Y4.28%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of UNH has falen by -35.84%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
UNH's Dividend Yield is rather good when compared to the industry average which is at 2.41. UNH pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
UNH has been paying a dividend for at least 10 years, so it has a reliable track record.
UNH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.73%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
34.90% of the earnings are spent on dividend by UNH. This is a low number and sustainable payout ratio.
The dividend of UNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.9%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
NYSE:UNH (6/16/2025, 2:42:08 PM)
306.795
-4.52 (-1.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.04%
Inst Owner Change1.58%
Ins Owners0.19%
Ins Owner Change3.04%
Market Cap278.31B
Analysts77.5
Price Target402.69 (31.26%)
Short Float %1.23%
Short Ratio0.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years15
Div Non Decr Years34
Ex-Date
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)-28.21%
PT rev (3m)-38.25%
EPS NQ rev (1m)-7.97%
EPS NQ rev (3m)-32.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.04%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.68 | ||
| P/FCF | 11.34 | ||
| P/OCF | 9.87 | ||
| P/B | 2.76 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)27.96
EY9.11%
EPS(NY)27.93
Fwd EY9.11%
FCF(TTM)27.07
FCFY8.82%
OCF(TTM)31.09
OCFY10.13%
SpS452.03
BVpS111.13
TBVpS111.13
PEG (NY)N/A
PEG (5Y)0.84
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
WACC8.16%
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 Y-12.93%
EPS Next 2Y0.03%
EPS Next 3Y4.28%
EPS Next 5Y8.37%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.32%
Revenue Next 2Y9.49%
Revenue Next 3Y8.71%
Revenue Next 5Y8.02%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-3.21%
EBIT Next 3Y6.93%
EBIT Next 5Y8.55%
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%