UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
USA - NYSE:UNH - US91324P1021 - Common Stock
356.67 USD
-4.48 (-1.24%)
354.87 USD
-1.8 (-0.5%)
Overall UNH gets a fundamental rating of 5 out of 10. We evaluated UNH against 100 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of UNH while its profitability can be described as average. UNH has a correct valuation and a medium growth rate. 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.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.90%, UNH belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
UNH has a Return On Equity of 21.20%. This is amongst the best in the industry. UNH outperforms 88.00% of its industry peers.
With a decent Return On Invested Capital value of 7.89%, UNH is doing good in the industry, outperforming 72.00% 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 9.33%.
| 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 has a better Profit Margin (5.04%) than 77.00% of its industry peers.
UNH's Profit Margin has declined in the last couple of years.
UNH's Operating Margin of 7.27% is fine compared to the rest of the industry. UNH outperforms 71.00% 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 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
UNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UNH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
Compared to 1 year ago, UNH has a worse debt to assets ratio.
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.
UNH's Debt to FCF ratio of 3.13 is fine compared to the rest of the industry. UNH outperforms 77.00% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that UNH is somewhat dependend on debt financing.
UNH has a Debt to Equity ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.93
WACC8.46%
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.
With a Current ratio value of 0.88, UNH is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.88, UNH is doing worse than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
UNH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.40%.
UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.07% yearly.
The Revenue has grown by 9.70% in the past year. This is quite good.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
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 2.92% on average over the next years.
UNH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y-41.32%
EPS Next 2Y-20.06%
EPS Next 3Y-9.21%
EPS Next 5Y2.92%
Revenue Next Year11.7%
Revenue Next 2Y7.76%
Revenue Next 3Y6.88%
Revenue Next 5Y6.32%
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 14.13, the valuation of UNH can be described as correct.
Based on the Price/Earnings ratio, UNH is valued cheaper than 81.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.31. UNH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.99, the valuation of UNH can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as UNH.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, UNH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
UNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNH is cheaper than 67.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UNH is valued cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The decent profitability rating of UNH may justify a higher PE ratio.
A cheap valuation may be justified as UNH's earnings are expected to decrease with -9.21% in the coming years.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-20.06%
EPS Next 3Y-9.21%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.40%. 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 2.44. UNH pays more dividend than 94.00% 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 | 2.4% |
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
5.3 Sustainability
UNH pays out 36.54% 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.
DP36.54%
EPS Next 2Y-20.06%
EPS Next 3Y-9.21%
356.67
-4.48 (-1.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change0.06%
Ins Owners0.17%
Ins Owner Change2.84%
Market Cap323.03B
Analysts75.63
Price Target348.76 (-2.22%)
Short Float %1.59%
Short Ratio0.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)4.55%
PT rev (3m)-10.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.82%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-26.59%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 19.99 | ||
| P/S | 0.76 | ||
| P/FCF | 12.77 | ||
| P/OCF | 11.15 | ||
| P/B | 3.22 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)25.24
EY7.08%
EPS(NY)17.84
Fwd EY5%
FCF(TTM)27.93
FCFY7.83%
OCF(TTM)32
OCFY8.97%
SpS466.86
BVpS110.93
TBVpS110.93
PEG (NY)N/A
PEG (5Y)1.08
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
WACC8.46%
ROIC/WACC0.93
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-41.32%
EPS Next 2Y-20.06%
EPS Next 3Y-9.21%
EPS Next 5Y2.92%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
Revenue Next Year11.7%
Revenue Next 2Y7.76%
Revenue Next 3Y6.88%
Revenue Next 5Y6.32%
EBIT growth 1Y-3.97%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-25.01%
EBIT Next 3Y-3.56%
EBIT Next 5Y4.32%
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%