UnitedHealth logged a 0.4% change during today's morning session, and is now trading at a price of $262.19 per share.
UnitedHealth returned losses of -54.7% last year, with its stock price reaching a high of $630.73 and a low of $248.88. Over the same period, the stock underperformed the S&P 500 index by -70.1%. AThe company's 50-day average price was $300.18. UnitedHealth Group Incorporated operates as a health care company in the United States and internationally. Based in Eden Prairie, MN, the Large-Cap Health Care company has 400,000 full time employees. UnitedHealth has offered a 3.3% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $242,155 | $257,141 | $287,597 | $324,162 | $371,622 | $400,278 |
| Operating Margins | 8% | 9% | 8% | 9% | 9% | 8% |
| Net Margins | 6% | 6% | 6% | 6% | 6% | 4% |
| Net Income (M) | $13,839 | $15,403 | $17,285 | $20,120 | $22,381 | $14,405 |
| Net Interest Expense (M) | $1,704 | $1,663 | $1,660 | $2,092 | $3,246 | $3,906 |
| Depreciation & Amort. (M) | $2,720 | $2,891 | $3,103 | $3,400 | $3,972 | $1,000 |
| Diluted Shares (M) | 966 | 961 | 956 | 950 | 938 | 929 |
| Earnings Per Share | $14.33 | $16.03 | $18.08 | $21.18 | $23.86 | $15.51 |
| EPS Growth | n/a | 11.86% | 12.79% | 17.15% | 12.65% | -35.0% |
| Avg. Price | $235.1 | $288.6 | $392.65 | $484.27 | $537.87 | $261.07 |
| P/E Ratio | 16.16 | 17.78 | 21.42 | 22.56 | 22.3 | 16.69 |
| Free Cash Flow (M) | $16,392 | $20,123 | $19,889 | $23,404 | $25,682 | $20,705 |
| CAPEX (M) | $2,071 | $2,051 | $2,454 | $2,802 | $3,386 | $3,499 |
| EV / EBITDA | 11.39 | 11.87 | 14.62 | 15.39 | 14.83 | 8.78 |
| Total Debt (M) | $40,678 | $43,467 | $46,003 | $57,623 | $62,537 | $76,904 |
| Net Debt / EBITDA | 1.33 | 1.05 | 0.91 | 1.08 | 1.02 | 1.55 |
| Current Ratio | 0.69 | 0.74 | 0.79 | 0.77 | 0.79 | 0.83 |
UnitedHealth has growing revenues and increasing reinvestment in the business and strong operating margins with a stable trend. Additionally, the company's financial statements display generally positive cash flows and healthy leverage levels. However, the firm suffers from EPS growth achieved by reducing the number of outstanding shares and not enough current assets to cover current liabilities because its current ratio is 0.83.
a Lower P/B Ratio Than Its Sector Average but Priced at a Premium:
UnitedHealth has a trailing twelve month P/E ratio of 13.0, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $29.9, the company has a forward P/E ratio of 10.0. The 11.1% compound average growth rate of UnitedHealth's historical and projected earnings per share yields a PEG ratio of 1.17. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing UnitedHealth in terms of its equity because its P/B ratio is 2.37 whereas the sector average is 3.19. The company's shares are currently trading 36.5% below their Graham number.
There's an Analyst Consensus of Strong Upside Potential for UnitedHealth:
The 24 analysts following UnitedHealth have set target prices ranging from $270.0 to $626.0 per share, for an average of $349.96 with a buy rating. The company is trading -25.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
UnitedHealth has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 90.7% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $23,788,390,112.
