UnitedHealth Group Incorporated
UnitedHealth Group Incorporated Fundamental Analysis
UnitedHealth Group Incorporated (UNH) shows moderate financial fundamentals with a PE ratio of 21.92, profit margin of 2.69%, and ROE of 12.50%. The company generates $445.5B in annual revenue with strong year-over-year growth of 11.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UNH's fundamental strength across five key dimensions:
Efficiency Score
WeakUNH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUNH trades at attractive valuation levels.
Growth Score
ModerateUNH shows steady but slowing expansion.
Financial Health Score
ModerateUNH shows balanced financial health with some risks.
Profitability Score
WeakUNH struggles to sustain strong margins.
Key Financial Metrics
Is UNH Expensive or Cheap?
P/E Ratio
UNH trades at 21.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UNH's PEG of -0.71 indicates potential undervaluation.
Price to Book
The market values UnitedHealth Group Incorporated at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.23 times EBITDA. This is generally considered low.
How Well Does UNH Make Money?
Net Profit Margin
For every $100 in sales, UnitedHealth Group Incorporated keeps $2.69 as profit after all expenses.
Operating Margin
Core operations generate 4.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.50 in profit for every $100 of shareholder equity.
ROA
UnitedHealth Group Incorporated generates $3.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UnitedHealth Group Incorporated generates limited operating cash flow of $19.61B, signaling weaker underlying cash strength.
Free Cash Flow
UnitedHealth Group Incorporated produces free cash flow of $16.00B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $17.66 in free cash annually.
FCF Yield
UNH converts 6.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How UNH Stacks Against Its Sector Peers
| Metric | UNH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.92 | 29.43 | Better (Cheaper) |
| ROE | 12.50% | 800.00% | Weak |
| Net Margin | 2.69% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.78 | 0.30 | Weak (High Leverage) |
| Current Ratio | 0.79 | 4.64 | Weak Liquidity |
| ROA | 3.89% | -17936.00% (disorted) | Weak |
UNH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UnitedHealth Group Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.94%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-3.99%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
79.49%
Industry Style: Defensive, Growth, Innovation
High Growth