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UnitedHealth Group Inc UNH

Morningstar Rating
$515.37 +3.84 (0.75%)
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Company Report

UnitedHealth Continues to Execute Well as the Top Managed Care Organization

Under one roof, UnitedHealth combines a top-tier health insurer (UnitedHealthcare), pharmacy benefit manager (Optum Rx), provider (Optum Health), and health analytics franchise (Optum Insight). The company's integrated strategy has resulted in some of the best returns in the industry in recent years and has been copied at least in part by the late 2018 mergers at CVS Health, which added Aetna's medical insurance assets to its existing retail stores and market-leading PBM, and Cigna, which added Express Scripts' PBM assets to its existing medical insurance operations. Outside of substantial regulator-led reforms, we think these vertically integrated organizations could help bend the healthcare cost curve in the United States, and UnitedHealth should be one of the key leaders of that charge.

Price vs Fair Value

UNH is trading at a 833% premium.
Price
$511.53
Fair Value
$318.00
Uncertainty
Medium
1-Star Price
$695.00
5-Star Price
$955.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

UnitedHealth's strategy of providing medical insurance, pharmacy benefits, and healthcare services creates a powerful alignment of incentives that should help clients control their healthcare costs better than pure-play competitors.

Bears

Economic downturns could cut into UnitedHealth's near-term earnings power, especially if employer-based insurance rolls shrink.

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News

Trading Information

Previous Close Price
$511.53
Day Range
$513.80530.83
52-Week Range
$436.38554.70
Bid/Ask
$517.20 / $518.78
Market Cap
$474.34 Bil
Volume/Avg
5.1 Mil / 4.2 Mil

Key Statistics

Price/Earnings (Normalized)
19.85
Price/Sales
1.26
Dividend Yield (Trailing)
1.51%
Dividend Yield (Forward)
1.64%
Total Yield
3.12%

Company Profile

UnitedHealth Group is one of the largest private health insurers, providing medical benefits to about 53 million members globally, including 5 million outside the U.S. as of mid-2023. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in managed care. Along with its insurance assets, UnitedHealth's continued investments in its Optum franchises have created a healthcare services colossus that spans everything from medical and pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.
Sector
Healthcare
Industry
Healthcare Plans
Stock Style Box
Large Core
Total Number of Employees
440,000

Competitors

Valuation

Metric
UNH
CVS
HUM
Price/Earnings (Normalized)
19.857.5216.03
Price/Book Value
5.431.002.86
Price/Sales
1.260.210.43
Price/Cash Flow
17.066.2113.72
Price/Earnings
UNH
CVS
HUM

Financial Strength

Metric
UNH
CVS
HUM
Quick Ratio
0.760.54
Current Ratio
0.850.81
Interest Coverage
7.534.556.16
Quick Ratio
UNH
CVS
HUM

Profitability

Metric
UNH
CVS
HUM
Return on Assets (Normalized)
8.58%4.07%5.46%
Return on Equity (Normalized)
28.44%13.68%17.15%
Return on Invested Capital (Normalized)
16.43%7.90%11.21%
Return on Assets
UNH
CVS
HUM
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Healthcare Plans Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Elevance Health Inc
ELV
GvttwbsFjykmrk$124.5 Bil
The Cigna Group
CI
WhpvrcpcGyjdkr$95.1 Bil
CVS Health Corp
CVS
DnnwwlhWmfkc$74.1 Bil
Humana Inc
HUM
ZjlzfkjmgXwcmwj$46.1 Bil
Centene Corp
CNC
SxvmltbxSbtzgb$36.2 Bil
Molina Healthcare Inc
MOH
Rscqrc$17.2 Bil
Oscar Health Inc Class A
OSCR
Xczjx$3.9 Bil
Alignment Healthcare Inc
ALHC
Lnk$1.7 Bil
Clover Health Investments Corp Ordinary Shares - Class A
CLOV
Lwhfn$749.6 Mil

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