UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNH - US91324P1021 - Common Stock
334.96 USD
+1.03 (+0.31%)
334.66 USD
-0.3 (-0.09%)
We assign a fundamental rating of 5 out of 10 to UNH. UNH was compared to 100 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of UNH get a neutral evaluation. Nothing too spectacular is happening here. UNH has a decent growth rate and is not valued too expensively. 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.
- 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
- UNH's Return On Assets of 5.58% is fine compared to the rest of the industry. UNH outperforms 79.00% of its industry peers.
- The Return On Equity of UNH (18.36%) is better than 86.00% of its industry peers.
- With a decent Return On Invested Capital value of 7.55%, UNH is doing good in the industry, outperforming 71.00% 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 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 18.36% | ||
| ROIC | 7.55% |
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
- With a decent Profit Margin value of 4.04%, UNH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of UNH has declined.
- With a decent Operating Margin value of 6.06%, UNH is doing good in the industry, outperforming 69.00% 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 | 6.06% | ||
| PM (TTM) | 4.04% | ||
| 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.
- Compared to 1 year ago, UNH has less shares outstanding
- UNH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, UNH has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.91 indicates that UNH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of UNH (2.91) is better than 61.00% of its industry peers.
- UNH has a debt to FCF ratio of 4.61. This is a neutral value as UNH would need 4.61 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.61, UNH is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
- UNH has a Debt/Equity ratio of 0.76. This is a neutral value indicating UNH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.76, UNH perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.87
WACC8.72%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
- The Current ratio of UNH (0.95) is worse than 74.00% of its industry peers.
- A Quick Ratio of 0.95 indicates that UNH may have some problems paying its short term obligations.
- UNH has a worse Quick ratio (0.95) than 69.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- The earnings per share for UNH have decreased strongly by -22.96% in the last year.
- 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 10.48%.
- 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)-22.96%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-59.16%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.24%
3.2 Future
- The Earnings Per Share is expected to grow by 2.69% on average over the next years.
- Based on estimates for the next years, UNH will show a small growth in Revenue. The Revenue will grow by 6.13% on average per year.
EPS Next Y-40.98%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
EPS Next 5Y2.69%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
Revenue Next 3Y6.02%
Revenue Next 5Y6.13%
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
- Based on the Price/Earnings ratio of 15.94, the valuation of UNH can be described as correct.
- UNH's Price/Earnings ratio is rather cheap when compared to the industry. UNH is cheaper than 82.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (27.33), we can say UNH is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 18.68, the valuation of UNH can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than 68.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
- UNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNH is cheaper than 68.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, UNH is valued a bit cheaper than the industry average as 71.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 11.6 |
4.3 Compensation for Growth
- The decent profitability rating of UNH may justify a higher PE ratio.
- UNH's earnings are expected to decrease with -8.89% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
5. Dividend
5.1 Amount
- UNH has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
- UNH's Dividend Yield is rather good when compared to the industry average which is at 0.59. UNH pays more dividend than 95.00% of the companies in the same industry.
- UNH's Dividend Yield is a higher than the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 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
- UNH pays out 44.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
- UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.61%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
334.96
+1.03 (+0.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-27 2026-01-27/amc
Inst Owners83.63%
Inst Owner Change-0.11%
Ins Owners0.16%
Ins Owner Change-0.95%
Market Cap303.42B
Revenue(TTM)435.16B
Net Income(TTM)17.59B
Analysts75.15
Price Target404.12 (20.65%)
Short Float %1.65%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP44.61%
Div Incr Years15
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.22%
Min EPS beat(2)-9.92%
Max EPS beat(2)3.48%
EPS beat(4)2
Avg EPS beat(4)-2.08%
Min EPS beat(4)-9.92%
Max EPS beat(4)3.48%
EPS beat(8)6
Avg EPS beat(8)0.38%
EPS beat(12)10
Avg EPS beat(12)0.9%
EPS beat(16)14
Avg EPS beat(16)1.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)0.91%
PT rev (3m)15.87%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 18.68 | ||
| P/S | 0.7 | ||
| P/FCF | 17.46 | ||
| P/OCF | 14.47 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)21.01
EY6.27%
EPS(NY)17.93
Fwd EY5.35%
FCF(TTM)19.18
FCFY5.73%
OCF(TTM)23.14
OCFY6.91%
SpS480.39
BVpS105.74
TBVpS-41.22
PEG (NY)N/A
PEG (5Y)1.22
Graham Number223.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 18.36% | ||
| ROCE | 9.71% | ||
| ROIC | 7.55% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 23.23% | ||
| OM | 6.06% | ||
| PM (TTM) | 4.04% | ||
| GM | N/A | ||
| FCFM | 3.99% |
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%
ROICexgc growth 3Y-2.11%
ROICexgc 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-Score9
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 83.69% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.42% | ||
| Profit Quality | 98.8% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.91 |
F-Score9
WACC8.72%
ROIC/WACC0.87
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)-22.96%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-59.16%
EPS Next Y-40.98%
EPS Next 2Y-19.86%
EPS Next 3Y-8.89%
EPS Next 5Y2.69%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.24%
Revenue Next Year11.62%
Revenue Next 2Y6.47%
Revenue Next 3Y6.02%
Revenue Next 5Y6.13%
EBIT growth 1Y-18.15%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-24.8%
EBIT Next 3Y-3.54%
EBIT Next 5Y4.13%
FCF growth 1Y-34.26%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-29.48%
OCF growth 3Y2.39%
OCF growth 5Y5.37%
UNITEDHEALTH GROUP INC / UNH FAQ
Can you provide the ChartMill fundamental rating for UNITEDHEALTH GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to UNH.
Can you provide the valuation status for UNITEDHEALTH GROUP INC?
ChartMill assigns a valuation rating of 5 / 10 to UNITEDHEALTH GROUP INC (UNH). This can be considered as Fairly Valued.
Can you provide the profitability details for UNITEDHEALTH GROUP INC?
UNITEDHEALTH GROUP INC (UNH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of UNITEDHEALTH GROUP INC (UNH) stock?
The Price/Earnings (PE) ratio for UNITEDHEALTH GROUP INC (UNH) is 15.94 and the Price/Book (PB) ratio is 3.17.
Is the dividend of UNITEDHEALTH GROUP INC sustainable?
The dividend rating of UNITEDHEALTH GROUP INC (UNH) is 7 / 10 and the dividend payout ratio is 44.61%.