Elevance Health Inc.
Elevance Health Inc. Fundamental Analysis
Elevance Health Inc. (ELV) shows moderate financial fundamentals with a PE ratio of 13.24, profit margin of 2.84%, and ROE of 13.01%. The company generates $198.1B in annual revenue with moderate year-over-year growth of 3.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ELV's fundamental strength across five key dimensions:
Efficiency Score
WeakELV struggles to generate sufficient returns from assets.
Valuation Score
ModerateELV shows balanced valuation metrics.
Growth Score
WeakELV faces weak or negative growth trends.
Financial Health Score
ModerateELV shows balanced financial health with some risks.
Profitability Score
WeakELV struggles to sustain strong margins.
Key Financial Metrics
Is ELV Expensive or Cheap?
P/E Ratio
ELV trades at 13.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELV's PEG of 5.15 indicates potential overvaluation.
Price to Book
The market values Elevance Health Inc. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.39 times EBITDA. This is generally considered low.
How Well Does ELV Make Money?
Net Profit Margin
For every $100 in sales, Elevance Health Inc. keeps $2.84 as profit after all expenses.
Operating Margin
Core operations generate 4.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.01 in profit for every $100 of shareholder equity.
ROA
Elevance Health Inc. generates $4.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elevance Health Inc. generates limited operating cash flow of $4.27B, signaling weaker underlying cash strength.
Free Cash Flow
Elevance Health Inc. generates weak or negative free cash flow of $3.16B, restricting financial flexibility.
FCF Per Share
Each share generates $14.31 in free cash annually.
FCF Yield
ELV converts 4.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ELV Stacks Against Its Sector Peers
| Metric | ELV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.24 | 29.28 | Better (Cheaper) |
| ROE | 13.01% | 820.00% | Weak |
| Net Margin | 2.84% | -19743.00% (disorted) | Weak |
| Debt/Equity | 0.73 | 0.26 | Weak (High Leverage) |
| Current Ratio | 0.60 | 4.69 | Weak Liquidity |
| ROA | 4.66% | -17807.00% (disorted) | Weak |
ELV outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Elevance Health Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.15%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
36.49%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
5.14%
Industry Style: Defensive, Growth, Innovation
Growing