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 103 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. UNH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UNH had positive earnings in the past year.
UNH had a positive operating cash flow in the past year.
In the past 5 years UNH has always been profitable.
UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNH's Return On Assets of 6.90% is amongst the best of the industry. UNH outperforms 86.41% of its industry peers.
Looking at the Return On Equity, with a value of 21.20%, UNH belongs to the top of the industry, outperforming 88.35% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.89%, UNH is doing good in the industry, outperforming 74.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNH is in line with the industry average of 9.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 21.2% | ||
| ROIC | 7.89% |
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 5.04% is fine compared to the rest of the industry. UNH outperforms 77.67% of its industry peers.
UNH's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.27%, UNH is doing good in the industry, outperforming 72.82% of the companies in the same industry.
In the last couple of years the Operating Margin of UNH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 5.04% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNH is 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
UNH has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as UNH would need 3.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.13, UNH is doing good in the industry, outperforming 76.70% of the companies in the same industry.
UNH has a Debt/Equity ratio of 0.73. This is a neutral value indicating UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: UNH outperforms 47.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC8.17%
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 on the low side compared to the rest of the industry. UNH is outperformed by 75.73% of its industry peers.
UNH has a Quick 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.
With a Quick ratio value of 0.88, UNH is not doing good in the industry: 68.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for UNH have decreased by -5.40% 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.
Looking at the last year, UNH shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
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)-5.4%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-40%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
3.2 Future
The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
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-20.07%
EPS Next 2Y-3.77%
EPS Next 3Y1.93%
EPS Next 5Y8.37%
Revenue Next Year12.01%
Revenue Next 2Y9.08%
Revenue Next 3Y8.3%
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
A Price/Earnings ratio of 9.43 indicates a reasonable valuation of UNH.
87.38% of the companies in the same industry are more expensive than UNH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.82. UNH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of UNH.
Based on the Price/Forward Earnings ratio, UNH is valued cheaply inside the industry as 85.44% of the companies are valued more expensively.
UNH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
77.67% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
86.41% of the companies in the same industry are more expensive than UNH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.53 | ||
| EV/EBITDA | 7.52 |
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)0.72
EPS Next 2Y-3.77%
EPS Next 3Y1.93%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 3.72%.
In the last 3 months the price of UNH has falen by -40.55%. 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 2.95, UNH pays a better dividend. On top of this UNH pays more dividend than 94.17% of the companies listed in the same industry.
UNH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
On average, the dividend of UNH grows each year by 14.73%, which is quite nice.
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
36.54% of the earnings are spent on dividend by UNH. This is a low number and sustainable payout ratio.
UNH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.54%
EPS Next 2Y-3.77%
EPS Next 3Y1.93%
NYSE:UNH (8/4/2025, 9:41:10 AM)
237.92
+0.15 (+0.06%)
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 Change-1.85%
Ins Owners0.19%
Ins Owner Change3.91%
Market Cap215.83B
Analysts75
Price Target382.97 (60.97%)
Short Float %1.4%
Short Ratio0.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP36.54%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.05%
Min EPS beat(2)-9.92%
Max EPS beat(2)-2.18%
EPS beat(4)2
Avg EPS beat(4)-2.67%
Min EPS beat(4)-9.92%
Max EPS beat(4)1.12%
EPS beat(8)6
Avg EPS beat(8)0.29%
EPS beat(12)10
Avg EPS beat(12)1.09%
EPS beat(16)14
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.12%
PT rev (1m)-1.43%
PT rev (3m)-34.33%
EPS NQ rev (1m)-28.55%
EPS NQ rev (3m)-51.67%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-23.3%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 9.2 | ||
| P/S | 0.51 | ||
| P/FCF | 8.53 | ||
| P/OCF | 7.45 | ||
| P/B | 2.15 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)25.24
EY10.61%
EPS(NY)25.86
Fwd EY10.87%
FCF(TTM)27.88
FCFY11.72%
OCF(TTM)31.95
OCFY13.43%
SpS466.1
BVpS110.75
TBVpS110.75
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 21.2% | ||
| ROCE | 10.15% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 33.7% | ||
| OM | 7.27% | ||
| PM (TTM) | 5.04% | ||
| GM | N/A | ||
| FCFM | 5.98% |
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-Score8
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 87.23% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.85% | ||
| Profit Quality | 118.76% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score8
WACC8.17%
ROIC/WACC0.97
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)-5.4%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%-40%
EPS Next Y-20.07%
EPS Next 2Y-3.77%
EPS Next 3Y1.93%
EPS Next 5Y8.37%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
Revenue Next Year12.01%
Revenue Next 2Y9.08%
Revenue Next 3Y8.3%
Revenue Next 5Y8.02%
EBIT growth 1Y-3.97%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-3.21%
EBIT Next 3Y6.93%
EBIT Next 5Y8.55%
FCF growth 1Y-33.78%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-29.96%
OCF growth 3Y2.39%
OCF growth 5Y5.37%