Now trading at a price of $547.73, UnitedHealth has moved -5.4% so far today.
UnitedHealth returned gains of 5.3% last year, with its stock price reaching a high of $630.73 and a low of $436.38. Over the same period, the stock underperformed the S&P 500 index by -26.6%. The company's 50-day average price was $586.79. UnitedHealth Group Incorporated operates as a diversified health care company in the United States. Based in Minnetonka, MN, the Large-Cap Health Care company has 440,000 full time employees. UnitedHealth has offered a 1.4% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $226,247 | $242,155 | $257,141 | $287,597 | $324,162 | $371,622 |
| Operating Margins | 8% | 8% | 9% | 8% | 9% | 9% |
| Net Margins | 5% | 6% | 6% | 6% | 6% | 6% |
| Net Income (M) | $11,986 | $13,839 | $15,403 | $17,285 | $20,120 | $22,381 |
| Net Interest Expense (M) | $1,400 | $1,704 | $1,663 | $1,660 | $2,092 | $3,246 |
| Depreciation & Amort. (M) | $2,428 | $2,720 | $2,891 | $3,103 | $3,400 | $3,972 |
| Diluted Shares (M) | 983 | 966 | 961 | 956 | 950 | 938 |
| Earnings Per Share | $12.19 | $14.33 | $16.03 | $18.08 | $21.18 | $23.86 |
| EPS Growth | n/a | 17.56% | 11.86% | 12.79% | 17.15% | 12.65% |
| Avg. Price | $230.56 | $235.1 | $288.6 | $392.65 | $484.27 | $549.68 |
| P/E Ratio | 18.52 | 16.16 | 17.78 | 21.42 | 22.56 | 22.79 |
| Free Cash Flow (M) | $13,650 | $16,392 | $20,123 | $19,889 | $23,404 | $25,682 |
| CAPEX (M) | $2,063 | $2,071 | $2,051 | $2,454 | $2,802 | $3,386 |
| EV / EBITDA | 12.58 | 11.39 | 11.87 | 14.62 | 15.39 | 15.14 |
| Total Debt (M) | $36,554 | $40,678 | $43,467 | $46,003 | $57,623 | $62,537 |
| Net Debt / EBITDA | 1.3 | 1.33 | 1.05 | 0.91 | 1.08 | 1.02 |
| Current Ratio | 0.73 | 0.69 | 0.74 | 0.79 | 0.77 | 0.79 |
UnitedHealth benefits from growing revenues and increasing reinvestment in the business, strong operating margins with a stable trend, and generally positive cash flows. The company's financial statements show a strong EPS growth trend and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.79.
UnitedHealth's Valuation Is in Line With Its Sector Averages:
UnitedHealth has a trailing twelve month P/E ratio of 38.1, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $29.9, the company has a forward P/E ratio of 19.6. The 13.7% compound average growth rate of UnitedHealth's historical and projected earnings per share yields a PEG ratio of 2.79. This suggests that these shares are overvalued. Furthermore, UnitedHealth is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.35 is higher than the sector average of 3.53. The company's shares are currently trading 135.6% below their Graham number. Ultimately, UnitedHealth's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Analysts Give UnitedHealth an Average Rating of Buy:
The 27 analysts following UnitedHealth have set target prices ranging from $551.12 to $715.0 per share, for an average of $636.45 with a buy rating. The company is trading -13.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
UnitedHealth has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 90.2% of the company's shares, and the insider ownership rate stands at 0.23%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $46,531,207,390.
