UnitedHealth Group
Market Cap
US$217.7b
Last Updated
2020/04/04 03:33 UTC
Data Sources
Company Financials +
Executive Summary
UnitedHealth Group Incorporated operates as a diversified health care company in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
Similar Companies
Share Price & News
How has UnitedHealth Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: UNH's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.3%
UNH
-3.4%
US Healthcare
-2.0%
US Market
1 Year Return
-7.8%
UNH
-6.5%
US Healthcare
-15.1%
US Market
Return vs Industry: UNH underperformed the US Healthcare industry which returned -6.5% over the past year.
Return vs Market: UNH exceeded the US Market which returned -15.1% over the past year.
Shareholder returns
| UNH | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -3.4% | -2.0% |
| 30 Day | -18.9% | -16.5% | -19.7% |
| 90 Day | -20.7% | -19.1% | -23.2% |
| 1 Year | -6.1%-7.8% | -5.2%-6.5% | -13.4%-15.1% |
| 3 Year | 44.7%38.2% | 16.1%10.9% | 10.9%3.7% |
| 5 Year | 108.8%92.8% | 19.7%11.6% | 28.4%14.4% |
Price Volatility Vs. Market
How volatile is UnitedHealth Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
You Have To Love UnitedHealth Group Incorporated's (NYSE:UNH) Dividend3 weeks ago | Simply Wall St
There's A Lot To Like About UnitedHealth Group Incorporated's (NYSE:UNH) Upcoming US$1.08 Dividend1 month ago | Simply Wall St
A Closer Look At UnitedHealth Group Incorporated's (NYSE:UNH) Impressive ROEValuation
Is UnitedHealth Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UNH ($229.49) is trading below our estimate of fair value ($627.73)
Significantly Below Fair Value: UNH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UNH is good value based on its PE Ratio (15.8x) compared to the Healthcare industry average (19.4x).
PE vs Market: UNH is poor value based on its PE Ratio (15.8x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: UNH is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: UNH is overvalued based on its PB Ratio (3.8x) compared to the US Healthcare industry average (2.3x).
Next Steps
Future Growth
How is UnitedHealth Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UNH's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).
Earnings vs Market: UNH's earnings (10.6% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: UNH's earnings are forecast to grow, but not significantly.
Revenue vs Market: UNH's revenue (7% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: UNH's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UNH's Return on Equity is forecast to be high in 3 years time (25.1%)
Next Steps
Past Performance
How has UnitedHealth Group performed over the past 5 years?
20.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UNH has high quality earnings.
Growing Profit Margin: UNH's current net profit margins (5.7%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: UNH's earnings have grown significantly by 20.8% per year over the past 5 years.
Accelerating Growth: UNH's earnings growth over the past year (15.5%) is below its 5-year average (20.8% per year).
Earnings vs Industry: UNH earnings growth over the past year (15.5%) exceeded the Healthcare industry 14%.
Return on Equity
High ROE: UNH's Return on Equity (22.9%) is considered high.
Next Steps
Financial Health
How is UnitedHealth Group's financial position?
Financial Position Analysis
Short Term Liabilities: UNH's short term assets ($39.6B) do not cover its short term liabilities ($61.8B).
Long Term Liabilities: UNH's short term assets ($39.6B) do not cover its long term liabilities ($49.9B).
Debt to Equity History and Analysis
Debt Level: UNH's debt to equity ratio (65.4%) is considered high.
Reducing Debt: UNH's debt to equity ratio has increased from 51.6% to 65.4% over the past 5 years.
Debt Coverage: UNH's debt is well covered by operating cash flow (45.4%).
Interest Coverage: UNH's interest payments on its debt are well covered by EBIT (11.6x coverage).
Balance Sheet
Inventory Level: UNH has a low level of unsold assets or inventory.
Debt Coverage by Assets: UNH's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is UnitedHealth Group's current dividend yield, its reliability and sustainability?
1.88%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UNH's dividend (1.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: UNH's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
Stable Dividend: UNH's dividends per share have been stable in the past 10 years.
Growing Dividend: UNH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.4%), UNH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UNH's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Dave Wichmann (56yo)
2.58s
Tenure
US$18,107,356
Compensation
Mr. David Scott Wichmann, also known as Dave, serves as a Director of Surgical Care Affiliates, Inc. Mr. Wichmann has been the Chief Executive Officer and Director of UnitedHealth Group Incorporated since ...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD18.11M) is above average for companies of similar size in the US market ($USD11.95M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.58yrs | US$18.11m | 0.10% $222.3m | |
| Group President | 0.42yr | US$22.00m | 0.0070% $15.3m | |
| Executive VP & CFO | 3.83yrs | US$8.59m | 0.010% $22.4m | |
| Executive VP & Office of the Chief Executive | 2.58yrs | US$9.76m | 0.0041% $8.8m | |
| Senior VP & Chief Accounting Officer | 4.67yrs | no data | 0.0010% $2.2m | |
| Chief Information Officer | no data | no data | no data | |
| Chief Scientific Officer & Member of Office of the Chief Executive | 1.25yrs | no data | no data | |
| Executive VP & Chief Legal Officer | 7.25yrs | US$6.49m | 0.013% $28.2m | |
| Senior VP & Chief Communications Officer | 1.25yrs | no data | no data | |
| Director of Sales for Western Pennsylvania | no data | no data | no data |
2.6yrs
Average Tenure
56yo
Average Age
Experienced Management: UNH's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.58yrs | US$18.11m | 0.10% $222.3m | |
| Independent Director | 19.25yrs | US$352.72k | 0.0049% $10.7m | |
| Non-Executive Chairman | 2.58yrs | US$11.35m | 0.28% $612.6m | |
| Independent Director | 12.5yrs | US$338.71k | 0.00036% $783.7k | |
| Independent Director | 27.25yrs | US$325.31k | 0.0039% $8.6m | |
| Lead Independent Director | 2.58yrs | US$405.99k | 0.17% $368.7m | |
| Independent Director | 27.25yrs | US$338.60k | 0.0046% $10.1m | |
| Independent Director | 3.25yrs | US$325.55k | 0.00021% $457.1k | |
| Independent Director | 2.17yrs | US$189.63k | 0.00068% $1.5m | |
| Independent Director | 2.67yrs | US$318.33k | 0.00021% $457.1k |
3.0yrs
Average Tenure
65yo
Average Age
Experienced Board: UNH's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: UNH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
UnitedHealth Group Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: UnitedHealth Group Incorporated
- Ticker: UNH
- Exchange: NYSE
- Founded: 1974
- Industry: Managed Health Care
- Sector: Healthcare
- Market Cap: US$217.688b
- Shares outstanding: 948.57m
- Website: https://www.unitedhealthgroup.com
Number of Employees
Location
- UnitedHealth Group Incorporated
- UnitedHealth Group Center
- 9900 Bren Road East
- Minnetonka
- Minnesota
- 55343
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UNH | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1984 |
| UNH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1984 |
| UNH | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Oct 1984 |
| UNH * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 1984 |
| UNH | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Oct 1984 |
| UNH | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Oct 1984 |
| 0R0O | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 1984 |
| UNH | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Oct 1984 |
| UNH | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Oct 1984 |
| UNHH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 0.2 COM USD0.01 | BR | BRL | May 2019 |
Biography
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; Medicaid plans, Children’s Health Insurance Program, and health care programs; medical and dental benefits; and health care delivery. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 03:33 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.