UNITEDHEALTH GROUP INC (UNH)
US91324P1021 - Common Stock
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 117 industry peers in the Health Care Providers & Services industry. While UNH belongs to the best of the industry regarding profitability, there are concerns on its financial health. UNH is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years UNH always reported a positive cash flow from operatings.
1.2 Ratios
UNH has a Return On Assets of 5.40%. This is amongst the best in the industry. UNH outperforms 81.90% of its industry peers.
UNH has a better Return On Equity (16.63%) than 87.07% of its industry peers.
UNH's Return On Invested Capital of 9.26% is amongst the best of the industry. UNH outperforms 88.79% of its industry peers.
UNH had an Average Return On Invested Capital over the past 3 years of 10.46%. This is in line with the industry average of 8.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROIC | 9.26% |
ROA(3y)8.17%
ROA(5y)8.06%
ROE(3y)25.06%
ROE(5y)24.54%
ROIC(3y)10.46%
ROIC(5y)10.41%
1.3 Margins
The Profit Margin of UNH (4.05%) is better than 80.17% of its industry peers.
UNH's Profit Margin has improved in the last couple of years.
UNH's Operating Margin of 8.49% is amongst the best of the industry. UNH outperforms 83.62% of its industry peers.
UNH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| GM | N/A |
OM growth 3Y-0.02%
OM growth 5Y2.58%
PM growth 3Y0.18%
PM growth 5Y2.6%
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
Compared to 5 years ago, UNH has less shares outstanding
UNH has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UNH is 7.00, which is on the high side as it means it would take UNH, 7.00 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.00, UNH is doing good in the industry, outperforming 65.52% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that UNH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, UNH perfoms like the industry average, outperforming 49.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 7 | ||
| Altman-Z | N/A |
ROIC/WACC1.07
WACC8.67%
2.3 Liquidity
UNH has a Current Ratio of 0.66. 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 0.66, UNH is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.66 indicates that UNH may have some problems paying its short term obligations.
UNH's Quick ratio of 0.66 is on the low side compared to the rest of the industry. UNH is outperformed by 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.33% over the past year.
UNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.31% yearly.
The Revenue has grown by 12.96% in the past year. This is quite good.
The Revenue has been growing by 10.43% on average over the past years. This is quite good.
EPS 1Y (TTM)13.33%
EPS 3Y14.19%
EPS 5Y14.31%
EPS growth Q2Q14.38%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
Revenue growth 5Y10.43%
Revenue growth Q2Q8.56%
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 12.57% yearly.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y11.42%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
EPS Next 5Y12.57%
Revenue Next Year8.57%
Revenue Next 2Y8.15%
Revenue Next 3Y8.19%
Revenue Next 5Y7.25%
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.
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
With a Price/Earnings ratio of 18.98, UNH is valued on the expensive side.
UNH's Price/Earnings ratio is a bit cheaper when compared to the industry. UNH is cheaper than 76.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, UNH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.63, UNH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a somewhat cheap valuation: UNH is cheaper than 77.59% 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 (21.63), we can say UNH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
UNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNH is cheaper than 66.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.3 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UNH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UNH's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)1.66
PEG (5Y)1.33
EPS Next 2Y12.15%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 2.76, UNH pays a better dividend. On top of this UNH pays more dividend than 87.93% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, UNH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of UNH is nicely growing with an annual growth rate of 16.15%!
UNH has been paying a dividend for at least 10 years, so it has a reliable track record.
UNH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.15%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
UNH pays out 45.26% 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.
DP45.26%
EPS Next 2Y12.15%
EPS Next 3Y12.46%
UNITEDHEALTH GROUP INC
NYSE:UNH (4/25/2024, 4:36:25 PM)
After market: 492.001 -1.86 (-0.38%)493.86
+6.56 (+1.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap455.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 15.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.66
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 16.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.49% | ||
| PM (TTM) | 4.05% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.33%
EPS 3Y14.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.96%
Revenue growth 3Y13.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y