UnitedHealth Group
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UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The last earnings update was 6 days ago. More info.
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UNH Share Price and Events
7 Day Returns
1 Year Returns
UNH Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| UnitedHealth Group (UNH) | -1.3% | -8.1% | -14.5% | -3.1% | 69.8% | 199.9% |
| US Healthcare | -3% | -7.7% | -11.8% | -5.1% | 10.9% | 60.2% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- UNH outperformed the Healthcare industry which returned -5.1% over the past year.
- UNH underperformed the Market in United States of America which returned 7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
UnitedHealth Group
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for UnitedHealth Group.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 15 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Healthcare Unlevered Beta | Simply Wall St/ S&P Global | 0.71 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (17.73%)) |
0.874 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.87 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.874 * 5.96%) |
7.94% |
Discounted Cash Flow Calculation for NYSE:UNH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for UnitedHealth Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.94%) |
|
|---|---|---|---|
| 2019 | 15,130.88 | Analyst x5 | 14,018.18 |
| 2020 | 17,787.46 | Analyst x7 | 15,267.52 |
| 2021 | 20,653.34 | Analyst x5 | 16,423.75 |
| 2022 | 23,052.67 | Analyst x3 | 16,983.63 |
| 2023 | 25,259.50 | Analyst x2 | 17,240.96 |
| 2024 | 27,082.79 | Est @ 7.22% | 17,126.06 |
| 2025 | 28,673.04 | Est @ 5.87% | 16,798.29 |
| 2026 | 30,086.40 | Est @ 4.93% | 16,330.10 |
| 2027 | 31,370.93 | Est @ 4.27% | 15,775.15 |
| 2028 | 32,565.42 | Est @ 3.81% | 15,171.55 |
| Present value of next 10 years cash flows | $161,135.18 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $32,565.42 × (1 + 2.73%) ÷ (7.94% – 2.73%) |
$642,418.75 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $642,418.75 ÷ (1 + 7.94%)10 |
$299,289.54 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $161,135.18 + $299,289.54 |
$460,424.72 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $460,424.72 / 952.24 |
$483.52 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $483.52 |
| Current discount | Discount to share price of
$227.11
= -1 x ($227.11 - $483.52) / $483.52 |
53% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- UnitedHealth Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
- UnitedHealth Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for UnitedHealth Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
UnitedHealth Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $13.14 |
| NYSE:UNH Share Price ** | NYSE (2019-04-22) in USD | $227.11 |
| United States of America Healthcare Industry PE Ratio | Median Figure of 53 Publicly-Listed Healthcare Companies | 20.9x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of UnitedHealth Group.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:UNH Share Price ÷ EPS (both in USD) = 227.11 ÷ 13.14 |
17.28x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- UnitedHealth Group is good value based on earnings compared to the US Healthcare industry average.
- UnitedHealth Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
UnitedHealth Group's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.28x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts |
10.7%per year |
| United States of America Healthcare Industry PEG Ratio | Median Figure of 40 Publicly-Listed Healthcare Companies | 1.48x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.28x ÷ 10.7% |
1.61x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- UnitedHealth Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
UnitedHealth Group's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $55.85 |
| NYSE:UNH Share Price * | NYSE (2019-04-22) in USD | $227.11 |
| United States of America Healthcare Industry PB Ratio | Median Figure of 92 Publicly-Listed Healthcare Companies | 2.33x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:UNH Share Price ÷ Book Value per Share (both in USD) = 227.11 ÷ 55.85 |
4.07x |
* Primary Listing of UnitedHealth Group.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- UnitedHealth Group is overvalued based on assets compared to the US Healthcare industry average.
Value checks
We assess UnitedHealth Group's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) UnitedHealth Group has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- UnitedHealth Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- UnitedHealth Group's earnings growth is positive but not above the United States of America market average.
- UnitedHealth Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:UNH Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts | 10.7% |
| NYSE:UNH Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts | 6.9% |
| United States of America Healthcare Industry Earnings Growth Rate | Market Cap Weighted Average | 13.2% |
| United States of America Healthcare Industry Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 308,285 | 25,586 | 20,592 | 1 |
| 2022-12-31 | 300,086 | 24,460 | 18,752 | 2 |
| 2021-12-31 | 286,128 | 21,352 | 17,211 | 8 |
| 2020-12-31 | 264,487 | 19,508 | 15,261 | 14 |
| 2019-12-31 | 244,501 | 16,964 | 13,580 | 15 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 231,367 | 10,578 | 12,617 |
| 2018-12-31 | 226,247 | 15,713 | 11,986 |
| 2018-09-30 | 219,891 | 10,740 | 12,563 |
| 2018-06-30 | 213,657 | 17,345 | 11,860 |
| 2018-03-31 | 207,624 | 15,509 | 11,222 |
| 2017-12-31 | 201,159 | 13,596 | 10,558 |
| 2017-09-30 | 196,633 | 14,764 | 8,625 |
| 2017-06-30 | 192,604 | 14,421 | 8,108 |
| 2017-03-31 | 189,036 | 13,933 | 7,578 |
| 2016-12-31 | 184,840 | 9,795 | 7,017 |
| 2016-09-30 | 180,904 | 14,715 | 6,551 |
| 2016-06-30 | 176,100 | 10,309 | 6,180 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
All data from UnitedHealth Group Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 22.49 | 22.49 | 22.49 | 1.00 |
| 2022-12-31 | 20.70 | 21.01 | 20.38 | 2.00 |
| 2021-12-31 | 18.23 | 18.79 | 17.67 | 6.00 |
| 2020-12-31 | 15.88 | 16.40 | 15.53 | 15.00 |
| 2019-12-31 | 13.98 | 14.11 | 13.90 | 15.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 13.14 |
| 2018-12-31 | 12.45 |
| 2018-09-30 | 13.02 |
| 2018-06-30 | 12.28 |
| 2018-03-31 | 11.60 |
| 2017-12-31 | 10.95 |
| 2017-09-30 | 8.99 |
| 2017-06-30 | 8.49 |
| 2017-03-31 | 7.96 |
| 2016-12-31 | 7.37 |
| 2016-09-30 | 6.88 |
| 2016-06-30 | 6.49 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess UnitedHealth Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
UnitedHealth Group has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has UnitedHealth Group performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- UnitedHealth Group's year on year earnings growth rate has been positive over the past 5 years.
- UnitedHealth Group's 1-year earnings growth is less than its 5-year average (12.4% vs 19.8%)
- UnitedHealth Group's earnings growth has exceeded the US Healthcare industry average in the past year (12.4% vs 7.3%).
Earnings and Revenue History
All data from UnitedHealth Group Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 231,367.00 | 12,617.00 | 34,085.00 | |
| 2018-12-31 | 226,247.00 | 11,986.00 | 34,074.00 | |
| 2018-09-30 | 219,891.00 | 12,563.00 | 33,191.00 | |
| 2018-06-30 | 213,657.00 | 11,860.00 | 32,099.00 | |
| 2018-03-31 | 207,624.00 | 11,222.00 | 31,041.00 | |
| 2017-12-31 | 201,159.00 | 10,558.00 | 29,557.00 | |
| 2017-09-30 | 196,633.00 | 8,625.00 | 29,554.00 | |
| 2017-06-30 | 192,604.00 | 8,108.00 | 29,200.00 | |
| 2017-03-31 | 189,036.00 | 7,578.00 | 28,665.00 | |
| 2016-12-31 | 184,840.00 | 7,017.00 | 28,401.00 | |
| 2016-09-30 | 180,904.00 | 6,551.00 | 27,146.00 | |
| 2016-06-30 | 176,100.00 | 6,180.00 | 26,291.00 | |
| 2016-03-31 | 165,878.00 | 6,011.00 | 25,236.00 | |
| 2015-12-31 | 157,107.00 | 5,813.00 | 24,312.00 | |
| 2015-09-30 | 146,941.00 | 6,105.00 | 23,177.00 | |
| 2015-06-30 | 138,211.00 | 6,110.00 | 22,435.00 | |
| 2015-03-31 | 134,522.00 | 5,933.00 | 21,903.00 | |
| 2014-12-31 | 130,474.00 | 5,619.00 | 21,263.00 | |
| 2014-09-30 | 128,158.00 | 5,536.00 | 20,890.00 | |
| 2014-06-30 | 126,023.00 | 5,504.00 | 20,323.00 | |
| 2014-03-31 | 123,857.00 | 5,532.00 | 19,942.00 | |
| 2013-12-31 | 122,489.00 | 5,625.00 | 18,941.00 | |
| 2013-09-30 | 120,141.00 | 5,442.00 | 19,161.00 | |
| 2013-06-30 | 116,819.00 | 5,429.00 | 18,569.00 | |
| 2013-03-31 | 113,676.00 | 5,330.00 | 17,824.00 | |
| 2012-12-31 | 110,618.00 | 5,526.00 | 17,306.00 | |
| 2012-09-30 | 107,765.00 | 5,540.00 | 16,761.00 | |
| 2012-06-30 | 105,743.00 | 5,254.00 | 16,383.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- UnitedHealth Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- UnitedHealth Group used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
- UnitedHealth Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess UnitedHealth Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
UnitedHealth Group has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is UnitedHealth Group's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up UnitedHealth Group's finances.
The net worth of a company is the difference between its assets and liabilities.
- UnitedHealth Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- UnitedHealth Group's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from UnitedHealth Group Company Filings, last reported 3 weeks ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 56,505.00 | 38,338.00 | 15,710.00 |
| 2018-12-31 | 56,227.00 | 36,554.00 | 14,324.00 |
| 2018-09-30 | 54,365.00 | 33,553.00 | 13,849.00 |
| 2018-06-30 | 52,622.00 | 35,055.00 | 21,860.00 |
| 2018-03-31 | 51,926.00 | 35,585.00 | 22,041.00 |
| 2017-12-31 | 52,022.00 | 31,692.00 | 15,490.00 |
| 2017-09-30 | 49,480.00 | 29,262.00 | 19,794.00 |
| 2017-06-30 | 46,993.00 | 31,936.00 | 17,970.00 |
| 2017-03-31 | 45,662.00 | 33,920.00 | 19,352.00 |
| 2016-12-31 | 40,189.00 | 32,970.00 | 13,275.00 |
| 2016-09-30 | 39,491.00 | 33,224.00 | 15,667.00 |
| 2016-06-30 | 38,031.00 | 33,198.00 | 10,974.00 |
| 2016-03-31 | 36,891.00 | 33,722.00 | 13,014.00 |
| 2015-12-31 | 35,461.00 | 31,976.00 | 12,911.00 |
| 2015-09-30 | 34,693.00 | 31,783.00 | 9,925.00 |
| 2015-06-30 | 34,635.00 | 18,104.00 | 9,802.00 |
| 2015-03-31 | 33,330.00 | 18,375.00 | 10,432.00 |
| 2014-12-31 | 33,842.00 | 17,461.00 | 9,236.00 |
| 2014-09-30 | 33,990.00 | 17,579.00 | 9,212.00 |
| 2014-06-30 | 34,238.00 | 16,777.00 | 8,289.00 |
| 2014-03-31 | 33,817.00 | 16,862.00 | 9,383.00 |
| 2013-12-31 | 33,324.00 | 17,023.00 | 9,213.00 |
| 2013-09-30 | 33,146.00 | 16,862.00 | 10,719.00 |
| 2013-06-30 | 32,150.00 | 16,717.00 | 10,097.00 |
| 2013-03-31 | 33,945.00 | 18,060.00 | 13,057.00 |
| 2012-12-31 | 33,299.00 | 16,765.00 | 11,437.00 |
| 2012-09-30 | 30,223.00 | 12,998.00 | 11,954.00 |
| 2012-06-30 | 29,375.00 | 12,617.00 | 14,430.00 |
- UnitedHealth Group's level of debt (67.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (49.9% vs 67.8% today).
- Debt is well covered by operating cash flow (27.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
Financial health checks
We assess UnitedHealth Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) UnitedHealth Group has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is UnitedHealth Group's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
UnitedHealth Group
shares you are expected to receive
$32
in your first year as a dividend.
Dividend Amount
- UnitedHealth Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- UnitedHealth Group's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| United States of America Healthcare Industry Average Dividend Yield | Market Cap Weighted Average of 21 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 4.66 | 3.00 |
| 2020-12-31 | 4.20 | 7.00 |
| 2019-12-31 | 3.82 | 7.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-27 | 3.600 | 1.488 |
| 2018-11-09 | 3.600 | 1.378 |
| 2018-08-08 | 3.600 | 1.360 |
| 2018-06-06 | 3.600 | 1.423 |
| 2018-02-14 | 3.000 | 1.297 |
| 2017-11-08 | 3.000 | 1.339 |
| 2017-08-16 | 3.000 | 1.504 |
| 2017-06-07 | 3.000 | 1.597 |
| 2017-02-09 | 2.500 | 1.477 |
| 2016-11-09 | 2.500 | 1.578 |
| 2016-08-03 | 2.500 | 1.795 |
| 2016-06-08 | 2.500 | 1.779 |
| 2016-02-10 | 2.000 | 1.570 |
| 2015-11-06 | 2.000 | 1.747 |
| 2015-08-12 | 2.000 | 1.694 |
| 2015-06-03 | 2.000 | 1.655 |
| 2015-02-11 | 1.500 | 1.289 |
| 2014-11-07 | 1.500 | 1.472 |
| 2014-08-13 | 1.500 | 1.720 |
| 2014-06-04 | 1.500 | 1.831 |
| 2014-02-13 | 1.120 | 1.441 |
| 2013-11-08 | 1.120 | 1.540 |
| 2013-08-14 | 1.120 | 1.564 |
| 2013-06-05 | 1.120 | 1.649 |
| 2013-02-08 | 0.850 | 1.451 |
| 2012-10-31 | 0.850 | 1.566 |
| 2012-08-08 | 0.850 | 1.546 |
| 2012-06-06 | 0.850 | 1.524 |
| 2012-02-09 | 0.650 | 1.160 |
| 2011-11-04 | 0.650 | 1.319 |
| 2011-08-03 | 0.650 | 1.401 |
| 2011-05-25 | 0.650 | 1.291 |
| 2011-02-10 | 0.500 | 1.102 |
| 2010-11-03 | 0.500 | 1.321 |
| 2010-08-04 | 0.500 | 1.461 |
| 2010-05-26 | 0.500 | 1.653 |
| 2010-02-10 | 0.030 | 0.095 |
| 2010-01-21 | 0.030 | 0.091 |
| 2009-11-03 | 0.030 | 0.099 |
| 2009-10-20 | 0.030 | 0.115 |
| 2009-08-06 | 0.030 | 0.111 |
| 2009-07-21 | 0.030 | 0.110 |
| 2009-04-23 | 0.030 | 0.118 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
UnitedHealth Group's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.7x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
Income/ dividend checks
We assess UnitedHealth Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can UnitedHealth Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) UnitedHealth Group has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $17,389,976 |
| AGE | 55 |
| TENURE AS CEO | 1.6 years |
CEO Bio
Mr. David Scott Wichmann, also known as Dave, has been the Chief Executive Officer and Director of UnitedHealth Group Incorporated since September 1, 2017. Mr. Wichmann served as President of UnitedHealth Group Incorporated since November 2014 until September 1, 2017. Mr. Wichmann has oversight responsibility for all of UnitedHealthcare's domestic and international businesses and for overall UnitedHealth Group performance. He is a member of the Office of the Chief Executive of UnitedHealth. Mr. Wichmann served as the Chief Financial Officer at UnitedHealth Group Incorporated from January 2011 to June 9, 2016. He served as Unit President at UnitedHealth Group Incorporated from July 2004 to April 2008. Mr. Wichmann served as an Executive Vice President of UnitedHealth Group Incorporated since December 2006 until November 2014 and served as its President of Operations since April 22, 2008. He served as Chief Executive Officer of Specialized Care Services (now OptumHealth) of UnitedHealth Group Inc. from June 2003 to July 2004. He served as President of Commercial Markets Group at UnitedHealth from January 1, 2007 to April 2008. He served as the President and Chief Operating Officer at UnitedHealthcare from July 2004 to December 2006. Mr. Wichmann joined UnitedHealth Group in 1998 and served as its Senior Vice President. He served as the President and Chief Operating Officer of Specialized Care Services of UnitedHealth Group from 2001 to June 2003. He served as Senior Vice President of Corporate Development at UnitedHealth since 1998. Previously, he gained extensive experience in mergers and acquisitions, financial management, manufacturing and international administration as a Partner at Arthur Andersen and as the Chief Financial Officer at Advance Machine Company. He serves as Vice Chairman and Director of Amil Participações S.A. He has been a Director of SCAI Holdings, LLC (formerly known as Surgical Care Affiliates, Inc.) since March 24, 2017. He serves as a Director at Fidelity Sedgwick Holdings, Inc. He has been an Independent Director of Tennant Company since August 19, 2009. He serves on the boards of the Minnesota Orchestra, YMCA of Metropolitan Minneapolis and the UnitedHealthcare Children's Foundation. Mr. Wichmann holds B.S. in Accounting from Illinois State University.
CEO Compensation
- Dave's compensation has increased by more than 20% in the past year.
- Dave's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the UnitedHealth Group management team in years:
- The tenure for the UnitedHealth Group management team is about average.
Management Team
Steve Hemsley
Executive Chairman of the Board
$18M
65
Dave Wichmann
CEO & Director
$17M
55
1.6 yrs
Larry Renfro
Office of the Chief Executive & Vice Chairman
$14M
64
4.4 yrs
John Rex
CFO, Executive VP & Member of the Office of the Chief Executive
$8M
56
2.8 yrs
Marianne Short
Office of the Chief Executive
$6M
66
6.3 yrs
Andrew Witty
Executive VP & Member of Office of the Chief Executive
$62K
53
1.3 yrs
Steve Nelson
Executive VP & Office of the Chief Executive
$8M
59
1.6 yrs
Tom Roos
Senior VP & Chief Accounting Officer
45
3.7 yrs
Phil McKoy
Chief Information Officer
45
Ken Ehlert
Chief Scientific Officer & Member of Office of the Chief Executive
0.3 yrs
Board of Directors Tenure
Average tenure and age of the UnitedHealth Group board of directors in years:
- The average tenure for the UnitedHealth Group board of directors is less than 3 years, this suggests a new board.
Board of Directors
Dave Wichmann
CEO & Director
$17M
55
1.6 yrs
Bill Ballard
Director
$318K
77
26.3 yrs
Steve Hemsley
Executive Chairman of the Board
$18M
65
1.6 yrs
Gail Wilensky
Director
$339K
75
26.3 yrs
Michele Hooper
Director
$339K
66
11.5 yrs
Glenn Renwick
Director
$348K
63
18.3 yrs
Richard Burke
Lead Independent Director
$608K
75
1.6 yrs
Tim Flynn
Director
$230K
61
2.3 yrs
Valerie C. Rice
Director
$62K
56
1.7 yrs
Bill McNabb
Director
61
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Mar 19 | Sell | Richard Burke | Individual | 19. Mar 19 | 19. Mar 19 | -5,000 | $257.32 | $-1,286,584 | ||
| 14. Mar 19 | Sell | Richard Burke | Individual | 12. Mar 19 | 12. Mar 19 | -5,000 | $245.01 | $-1,225,055 | ||
| 24. Jan 19 | Sell | Richard Burke | Individual | 23. Jan 19 | 23. Jan 19 | -11,500 | $268.00 | $-3,082,000 | ||
| 18. Jan 19 | Sell | Richard Burke | Individual | 17. Jan 19 | 17. Jan 19 | -15,000 | $260.55 | $-3,908,259 | ||
| 29. Nov 18 | Sell | Richard Burke | Individual | 28. Nov 18 | 28. Nov 18 | -6,090 | $281.72 | $-1,715,686 | ||
| 13. Nov 18 | Sell | Kenneth Shine | Individual | 09. Nov 18 | 09. Nov 18 | -163 | $274.83 | $-44,796 | ||
| 17. Sep 18 | Sell | Richard Burke | Individual | 13. Sep 18 | 13. Sep 18 | -10,000 | $264.90 | $-2,649,027 | ||
| 17. Sep 18 | Sell | Steven Nelson | Individual | 13. Sep 18 | 13. Sep 18 | -8,142 | $265.00 | $-2,157,630 | ||
| 13. Sep 18 | Sell | Richard Burke | Individual | 12. Sep 18 | 12. Sep 18 | -20,000 | $263.41 | $-5,268,164 | ||
| 03. Aug 18 | Sell | Richard Burke | Individual | 01. Aug 18 | 01. Aug 18 | -15,000 | $254.79 | $-3,821,913 | ||
| 19. Jul 18 | Sell | Gail Wilensky | Individual | 18. Jul 18 | 18. Jul 18 | -2,200 | $252.10 | $-554,629 | ||
| 19. Jul 18 | Sell | Kenneth Shine | Individual | 18. Jul 18 | 18. Jul 18 | -177 | $255.72 | $-45,262 | ||
| 19. Jun 18 | Sell | Larry Renfro | Individual | 15. Jun 18 | 15. Jun 18 | -19,652 | $254.55 | $-5,002,436 | ||
| 23. May 18 | Sell | Richard Burke | Individual | 21. May 18 | 21. May 18 | -15,000 | $248.82 | $-3,732,261 | ||
| 25. Apr 18 | Sell | Richard Burke | Individual | 23. Apr 18 | 23. Apr 18 | -15,000 | $234.20 | $-3,513,027 | ||
Management checks
We assess UnitedHealth Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) UnitedHealth Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
What Should We Expect From UnitedHealth Group Incorporated's (NYSE:UNH) Earnings Over The Next Few Years?
The latest earnings release UnitedHealth Group Incorporated's (NYSE:UNH) announced in December 2018a
Simply Wall St - – Full articleRead This Before You Buy UnitedHealth Group Incorporated (NYSE:UNH) Because Of Its P/E Ratio
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … UnitedHealth Group has a price to earnings ratio of 19.99, based on the last twelve months. … How Do I Calculate UnitedHealth Group's Price To Earnings Ratio
Simply Wall St - – Full articleIs UnitedHealth Group Incorporated (NYSE:UNH) A High Quality Stock To Own?
Over the last twelve months UnitedHealth Group has recorded a ROE of 22%. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.22. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Investors Should Know About UnitedHealth Group Incorporated's (NYSE:UNH) Financial Strength
The size of UnitedHealth Group Incorporated (NYSE:UNH), a US$247b large-cap, often attracts investors seeking a reliable investment in the stock market. … I will provide an overview of UnitedHealth Group’s financial liquidity and leverage to give you an idea of UnitedHealth Group’s position to take advantage of potential acquisitions or comfortably endure future downturns. … View our latest analysis for UnitedHealth Group
Simply Wall St - – Full articleUnitedHealth Group Incorporated (NYSE:UNH): Is Growth Priced In?
UnitedHealth Group Incorporated (NYSE:UNH) is considered a high growth stock. … However its last closing price of $237.29 left investors wondering whether this growth has already been factored into the share price. … Analysts are predicting good growth prospects for UnitedHealth Group over the next couple of years
Simply Wall St - – Full articleIs Now The Time To Look At Buying UnitedHealth Group Incorporated (NYSE:UNH)?
received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $286.33 at one point, and dropping to the lows of $232.94. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether UnitedHealth Group's current trading price of $242.22 reflective of the actual value of the?
Simply Wall St - – Full articleUnitedHealth Group Incorporated (NYSE:UNH) Earns Among The Best Returns In Its Industry
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleUnitedHealth Group Incorporated (NYSE:UNH): Is It A Smart Long Term Opportunity?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … After UnitedHealth Group Incorporated's (NYSE:UNH) earnings announcement on 31 December 2018,
Simply Wall St - – Full articleCould UnitedHealth Group Incorporated's (NYSE:UNH) Investor Composition Influence The Stock Price?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of US$256b, UnitedHealth Group is rather large. … Companies of this size are usually well known to retail investors, too.
Simply Wall St - – Full articleWhy You Should Care About UnitedHealth Group Incorporated’s (NYSE:UNH) Cash Levels
What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I will take you through UnitedHealth Group’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … UnitedHealth Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure
Simply Wall St - – Full articleCompany Info
Description
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health and well-being services to individuals age 50 and older, addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children’s Health Insurance Program, and health care programs; and health and dental benefits. The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement, and financial services. This segment serves individuals through programs offered by employers, payers, government entities, and directly with the care delivery systems. The OptumInsight segment offers software and information products, advisory consulting arrangements, and services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical, as well as develops programs in areas, such as step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.
Details
| Name: | UnitedHealth Group Incorporated |
| UNH | |
| Exchange: | NYSE |
| Founded: | 1974 |
| $216,264,254,754 | |
| 952,244,528 | |
| Website: | http://www.unitedhealthgroup.com |
| Address: |
UnitedHealth Group Incorporated UnitedHealth Group Center, 9900 Bren Road East, Minnetonka, Minnesota, 55343, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | UNH | Common Stock | New York Stock Exchange | US | USD | 17. Oct 1984 | |
| DB | UNH | Common Stock | Deutsche Boerse AG | DE | EUR | 17. Oct 1984 | |
| LSE | 0R0O | Common Stock | London Stock Exchange | GB | USD | 17. Oct 1984 | |
| SWX | UNH | Common Stock | SIX Swiss Exchange | CH | CHF | 17. Oct 1984 | |
| WBAG | UNH | Common Stock | Wiener Boerse AG | AT | EUR | 17. Oct 1984 | |
| SNSE | UNH | Common Stock | Santiago Stock Exchange | CL | USD | 17. Oct 1984 | |
| BMV | UNH * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 17. Oct 1984 |
Number of employees
Current staff
Industry
| Managed Health Care | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 23:47 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/04/16 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
