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UnitedHealth Group Inc UNH

Morningstar Rating
$558.72 −6.73 (1.19%)
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Company Report

UnitedHealth Earnings: Raising Valuation on Solid Performance, Maintained Outlook Despite Challenges

On an adjusted basis, narrow-moat UnitedHealth turned in stronger second-quarter results than expected. This allowed it to maintain its 2024 outlook despite Change Healthcare-related challenges, South American exit costs, and elevated medical utilization pressuring the firm. After tinkering with our near-term estimates and recognizing cash flows generated since our last valuation update, we are increasing our fair value estimate by 6%, to $550 per share from $520.

Price vs Fair Value

UNH is trading at a 372% premium.
Price
$565.33
Fair Value
$786.00
Uncertainty
Medium
1-Star Price
$726.50
5-Star Price
$462.00
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 should create a powerful alignment of incentives to 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 or demand for healthcare services shrink.

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News

Trading Information

Previous Close Price
$565.45
Day Range
$558.72564.35
52-Week Range
$436.38581.28
Bid/Ask
$558.61 / $558.79
Market Cap
$514.39 Bil
Volume/Avg
1.5 Mil / 4.2 Mil

Key Statistics

Price/Earnings (Normalized)
21.94
Price/Sales
1.38
Dividend Yield (Trailing)
1.37%
Dividend Yield (Forward)
1.49%
Total Yield
2.40%

Company Profile

UnitedHealth Group is one of the largest private health insurers, providing medical benefits to about 50 million members globally, including 1 million outside the US as June 2024. 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
ELV
CVS
Price/Earnings (Normalized)
21.9414.147.59
Price/Book Value
5.502.751.01
Price/Sales
1.380.680.21
Price/Cash Flow
18.6812.836.27
Price/Earnings
UNH
ELV
CVS

Financial Strength

Metric
UNH
ELV
CVS
Quick Ratio
0.760.54
Current Ratio
0.850.81
Interest Coverage
7.539.074.55
Quick Ratio
UNH
ELV
CVS

Profitability

Metric
UNH
ELV
CVS
Return on Assets (Normalized)
8.58%7.50%4.07%
Return on Equity (Normalized)
28.44%20.90%13.68%
Return on Invested Capital (Normalized)
16.43%13.90%7.90%
Return on Assets
UNH
ELV
CVS
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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
BbjvwcmsTqfkbp$116.0 Bil
The Cigna Group
CI
HwdlxhrmfTfwwdd$95.4 Bil
CVS Health Corp
CVS
GjmsvldmTtjxqyl$74.8 Bil
Humana Inc
HUM
NkcghsswxNcltxj$46.7 Bil
Centene Corp
CNC
TdltscdssWxgxfl$35.3 Bil
Molina Healthcare Inc
MOH
Jybjcx$16.9 Bil
Oscar Health Inc Class A
OSCR
Wjcd$3.6 Bil
Alignment Healthcare Inc
ALHC
Rtj$1.9 Bil
Clover Health Investments Corp Ordinary Shares - Class A
CLOV
Ryxfr$809.2 Mil

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