UNITEDHEALTH GROUP INC (UNH) Stock Fundamental Analysis
NYSE:UNH - New York Stock Exchange, Inc. - US91324P1021 - Common Stock - Currency: USD
Taking everything into account, UNH scores 5 out of 10 in our fundamental rating. UNH was compared to 102 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. Finally 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.
UNH had positive earnings in each of the past 5 years.
UNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNH has a better Return On Assets (7.14%) than 88.24% of its industry peers.
UNH has a Return On Equity of 21.93%. This is amongst the best in the industry. UNH outperforms 87.25% of its industry peers.
The Return On Invested Capital of UNH (8.68%) is better than 77.45% of its industry peers.
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 9.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROIC | 8.68% |
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
Looking at the Profit Margin, with a value of 5.39%, UNH is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
In the last couple of years the Profit Margin of UNH has declined.
UNH has a Operating Margin of 8.16%. This is in the better half of the industry: UNH outperforms 75.49% 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 | 8.16% | ||
| PM (TTM) | 5.39% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNH is still creating some value.
The number of shares outstanding for UNH has been reduced compared to 1 year ago.
UNH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UNH is higher compared to a year ago.
2.2 Solvency
UNH has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as UNH would need 3.31 years to pay back of all of its debts.
UNH has a Debt to FCF ratio of 3.31. This is in the better half of the industry: UNH outperforms 71.57% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that UNH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, UNH is in line with its industry, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.17%
2.3 Liquidity
A Current Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
The Current ratio of UNH (0.88) is worse than 78.43% of its industry peers.
A Quick Ratio of 0.88 indicates that UNH may have some problems paying its short term obligations.
UNH has a worse Quick ratio (0.88) than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
UNH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
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 8.06%.
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)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
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 12.48% yearly.
Based on estimates for the next years, UNH will show a quite strong growth in Revenue. The Revenue will grow by 9.01% on average per year.
EPS Next Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue Next Year12.49%
Revenue Next 2Y10.29%
Revenue Next 3Y9.43%
Revenue Next 5Y9.01%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.88, which indicates a very decent valuation of UNH.
Compared to the rest of the industry, the Price/Earnings ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 82.35% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNH to the average of the S&P500 Index (24.83), we can say UNH is valued rather cheaply.
The Price/Forward Earnings ratio is 10.03, which indicates a very decent valuation of UNH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNH indicates a rather cheap valuation: UNH is cheaper than 84.31% 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 (20.94), we can say UNH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
68.63% of the companies in the same industry are more expensive than UNH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UNH is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.32 | ||
| EV/EBITDA | 10.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of UNH may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)0.91
EPS Next 2Y8.91%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
UNH has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of UNH has falen by -27.65%. 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 2.54, UNH pays a better dividend. On top of this UNH pays more dividend than 92.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, UNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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 34.90% 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.
DP34.9%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
NYSE:UNH (5/13/2025, 9:40:10 AM)
332.3
-46.45 (-12.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change1.25%
Ins Owners0.17%
Ins Owner Change0.51%
Market Cap302.47B
Analysts82.42
Price Target560.91 (68.8%)
Short Float %0.98%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend8.19
Dividend Growth(5Y)14.73%
DP34.9%
Div Incr Years15
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.94%
Min EPS beat(2)-2.18%
Max EPS beat(2)0.29%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-2.18%
Max EPS beat(4)1.12%
EPS beat(8)7
Avg EPS beat(8)1.73%
EPS beat(12)11
Avg EPS beat(12)2.42%
EPS beat(16)15
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.55%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.04%
PT rev (1m)-12.74%
PT rev (3m)-13.84%
EPS NQ rev (1m)-17.37%
EPS NQ rev (3m)-17.21%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.74 | ||
| P/FCF | 12.32 | ||
| P/OCF | 10.72 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)27.96
EY8.41%
EPS(NY)33.12
Fwd EY9.97%
FCF(TTM)26.97
FCFY8.12%
OCF(TTM)30.99
OCFY9.33%
SpS450.5
BVpS110.75
TBVpS110.76
PEG (NY)2.83
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 21.93% | ||
| ROCE | 11.17% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.8% | ||
| ROICexgc | 37.81% | ||
| OM | 8.16% | ||
| PM (TTM) | 5.39% | ||
| GM | N/A | ||
| FCFM | 5.99% |
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%
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-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 87.77% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.94% | ||
| Profit Quality | 111.07% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC8.17%
ROIC/WACC1.06
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)7.46%
EPS 3Y13.67%
EPS 5Y13.07%
EPS Q2Q%0.56%
EPS Next Y4.2%
EPS Next 2Y8.91%
EPS Next 3Y10.24%
EPS Next 5Y12.48%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y11.65%
Revenue growth 5Y10.57%
Sales Q2Q%9.49%
Revenue Next Year12.49%
Revenue Next 2Y10.29%
Revenue Next 3Y9.43%
Revenue Next 5Y9.01%
EBIT growth 1Y3.95%
EBIT growth 3Y10.44%
EBIT growth 5Y10.4%
EBIT Next Year18.42%
EBIT Next 3Y12.92%
EBIT Next 5Y12.34%
FCF growth 1Y-28.23%
FCF growth 3Y0.99%
FCF growth 5Y4.56%
OCF growth 1Y-24.21%
OCF growth 3Y2.39%
OCF growth 5Y5.37%