UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
NYSE:UNH - US91324P1021 - Common Stock
307.42 USD
+4.07 (+1.34%)
307.35 USD
-0.07 (-0.02%)
Overall UNH gets a fundamental rating of 5 out of 10. We evaluated UNH against 101 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 has a decent growth rate and is not valued too expensively. UNH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNH was profitable.
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 has a Return On Assets of 6.90%. This is amongst the best in the industry. UNH outperforms 86.54% of its industry peers.
With an excellent Return On Equity value of 21.20%, UNH belongs to the best of the industry, outperforming 89.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.89%, UNH is in the better half of the industry, outperforming 73.08% 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 9.15%.
| 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 Profit Margin of 5.04%. This is in the better half of the industry: UNH outperforms 78.85% of its industry peers.
In the last couple of years the Profit Margin of UNH has declined.
Looking at the Operating Margin, with a value of 7.27%, UNH is in the better half of the industry, outperforming 72.12% 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.
Compared to 1 year ago, UNH has less shares outstanding
The number of shares outstanding for UNH has been reduced compared to 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UNH is 3.13, which is a good value as it means it would take UNH, 3.13 years of fcf income to pay off all of its debts.
UNH has a better Debt to FCF ratio (3.13) than 78.85% of its industry peers.
UNH has a Debt/Equity ratio of 0.73. This is a neutral value indicating UNH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, UNH is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC7.92%
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 75.00% 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: 68.27% 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.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
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
Based on estimates for the next years, UNH will show a small growth in Earnings Per Share. The EPS will grow by 3.11% on average per year.
Based on estimates for the next years, UNH will show a small growth in Revenue. The Revenue will grow by 6.35% on average per year.
EPS Next Y-41.39%
EPS Next 2Y-20.21%
EPS Next 3Y-9.29%
EPS Next 5Y3.11%
Revenue Next Year11.73%
Revenue Next 2Y7.77%
Revenue Next 3Y6.89%
Revenue Next 5Y6.35%
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 12.18, the valuation of UNH can be described as correct.
Based on the Price/Earnings ratio, UNH is valued cheaply inside the industry as 85.58% of the companies are valued more expensively.
UNH is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.30, which indicates a rather expensive current valuation of UNH.
Based on the Price/Forward Earnings ratio, UNH is valued a bit cheaper than 68.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, UNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 85.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
UNH has a very decent profitability rating, which may justify a higher PE ratio.
UNH's earnings are expected to decrease with -9.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-20.21%
EPS Next 3Y-9.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, UNH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, UNH pays a better dividend. On top of this UNH pays more dividend than 94.23% of the companies listed in the same industry.
UNH's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 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
36.54% 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.
DP36.54%
EPS Next 2Y-20.21%
EPS Next 3Y-9.29%
307.42
+4.07 (+1.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.48%
Inst Owner Change-5.23%
Ins Owners0.19%
Ins Owner Change2.62%
Market Cap278.42B
Analysts75
Price Target333.92 (8.62%)
Short Float %1.68%
Short Ratio0.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)-12.81%
PT rev (3m)-40.47%
EPS NQ rev (1m)-39.25%
EPS NQ rev (3m)-62.64%
EPS NY rev (1m)-26.67%
EPS NY rev (3m)-32.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 17.3 | ||
| P/S | 0.66 | ||
| P/FCF | 11.01 | ||
| P/OCF | 9.61 | ||
| P/B | 2.77 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)25.24
EY8.21%
EPS(NY)17.77
Fwd EY5.78%
FCF(TTM)27.93
FCFY9.08%
OCF(TTM)32
OCFY10.41%
SpS466.86
BVpS110.93
TBVpS110.93
PEG (NY)N/A
PEG (5Y)0.93
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
WACC7.92%
ROIC/WACC1
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-41.39%
EPS Next 2Y-20.21%
EPS Next 3Y-9.29%
EPS Next 5Y3.11%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%12.66%
Revenue Next Year11.73%
Revenue Next 2Y7.77%
Revenue Next 3Y6.89%
Revenue Next 5Y6.35%
EBIT growth 1Y-3.97%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year-27.23%
EBIT Next 3Y-3.46%
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%