NYSE:UNH

Stock Analysis Report

Executive Summary

UnitedHealth Group Incorporated operates as a diversified health care company in the United States.

Snowflake

Fundamentals

Solid track record established 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


Market Performance


7 Day Return

-0.3%

UNH

-0.3%

US Healthcare

-0.6%

US Market


1 Year Return

-12.7%

UNH

-9.2%

US Healthcare

0.7%

US Market

UNH underperformed the Healthcare industry which returned -9.1% over the past year.

UNH underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

UNHIndustryMarket
7 Day-0.3%-0.3%-0.6%
30 Day1.0%2.1%4.9%
90 Day-6.7%-0.8%1.7%
1 Year-11.2%-12.7%-7.8%-9.2%3.0%0.7%
3 Year73.4%65.7%29.7%24.4%44.8%35.4%
5 Year190.9%168.9%66.1%56.2%62.0%44.3%

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

Do UnitedHealth Group's (NYSE:UNH) Earnings Warrant Your Attention?

Valuation

Is UnitedHealth Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

UnitedHealth Group is poor value based on expected growth next year.


Price Based on Value of Assets

UnitedHealth Group is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is UnitedHealth Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

UnitedHealth Group's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

UnitedHealth Group's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

UnitedHealth Group's revenue growth is positive but not above the United States of America market average.

UnitedHealth Group's earnings growth is positive but not above the United States of America market average.

UnitedHealth Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

UnitedHealth Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has UnitedHealth Group performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

UnitedHealth Group has delivered over 20% year on year earnings growth in the past 5 years.

UnitedHealth Group's 1-year earnings growth is less than its 5-year average (9.5% vs 20.5%)

UnitedHealth Group's earnings growth has exceeded the US Healthcare industry average in the past year (9.5% vs 5.6%).


Return on Equity

UnitedHealth Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

UnitedHealth Group used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

UnitedHealth Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is UnitedHealth Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

UnitedHealth Group's level of debt (72.8%) 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% vs 72.8% today).

Debt is well covered by operating cash flow (29.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is UnitedHealth Group's current dividend yield, its reliability and sustainability?

1.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

UnitedHealth Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

UnitedHealth Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

What is the CEO of UnitedHealth Group's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Dave Wichmann (56yo)

2yrs

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

Dave's remuneration is higher than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

The tenure for the UnitedHealth Group management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

65yo

Average Age

The average tenure for the UnitedHealth Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

UnitedHealth Group individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$1,163,39719 Sep 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,000
Max PriceUS$232.76
BuyUS$455,09429 Aug 19
Timothy Flynn
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$227.55
SellUS$463,00026 Aug 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$231.50
SellUS$1,232,00012 Aug 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,000
Max PriceUS$246.40
SellUS$3,063,66024 Jul 19
William Ballard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,000
Max PriceUS$255.31
SellUS$2,480,00012 Jun 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$248.00
SellUS$2,419,88330 May 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$241.99
BuyUS$4,635,73006 May 19
David Wichmann
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceUS$231.79
BuyUS$1,499,53403 May 19
Frederick McNabb
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,430
Max PriceUS$233.21
SellUS$2,297,50126 Apr 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$229.75
SellUS$1,286,58421 Mar 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,000
Max PriceUS$257.32
SellUS$1,225,05514 Mar 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,000
Max PriceUS$245.01
SellUS$3,082,00024 Jan 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares11,500
Max PriceUS$268.00
SellUS$3,908,25918 Jan 19
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares15,000
Max PriceUS$260.55
SellUS$1,715,68629 Nov 18
Richard Burke
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares6,090
Max PriceUS$281.72
SellUS$44,79613 Nov 18
Kenneth Shine
EntityIndividual
Shares163
Max PriceUS$274.83

Ownership Breakdown


Management Team

  • Steve Hemsley (66yo)

    Executive Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$11.35m
  • Larry Renfro (65yo)

    Office of the Chief Executive & Vice Chairman

    • Tenure: 4.8yrs
    • Compensation: US$14.24m
  • Richard Burke (76yo)

    Lead Independent Director

    • Tenure: 2yrs
    • Compensation: US$405.99k
  • Andrew Witty (54yo)

    Executive VP & Member of Office of the Chief Executive

    • Tenure: 1.7yrs
    • Compensation: US$22.00m
  • Steve Nelson (60yo)

    Executive VP & Office of the Chief Executive

    • Tenure: 2yrs
    • Compensation: US$9.76m
  • Dave Wichmann (56yo)

    CEO & Director

    • Tenure: 2yrs
    • Compensation: US$18.11m
  • John Rex (57yo)

    CFO, Executive VP & Member of the Office of the Chief Executive

    • Tenure: 3.3yrs
    • Compensation: US$8.59m
  • Phil McKoy (46yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Tom Roos (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.1yrs
  • Ken Ehlert

    Chief Scientific Officer & Member of Office of the Chief Executive

    • Tenure: 0.7yrs

Board Members

  • Glenn Renwick (64yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$352.72k
  • Steve Hemsley (66yo)

    Executive Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$11.35m
  • Michele Hooper (67yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: US$338.71k
  • Bill Ballard (78yo)

    Director

    • Tenure: 26.7yrs
    • Compensation: US$325.31k
  • Richard Burke (76yo)

    Lead Independent Director

    • Tenure: 2yrs
    • Compensation: US$405.99k
  • Gail Wilensky (76yo)

    Director

    • Tenure: 26.7yrs
    • Compensation: US$338.60k
  • Tim Flynn (62yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$325.55k
  • Dave Wichmann (56yo)

    CEO & Director

    • Tenure: 2yrs
    • Compensation: US$18.11m
  • Bill McNabb (62yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$189.63k
  • Valerie C. Rice (57yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$318.33k

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: 1977
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$220.705b
  • Shares outstanding: 947.68m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNHNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1984
UNHDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1984
UNH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1984
UNHSNSE (Santiago Stock Exchange)YesCommon StockCLUSDOct 1984
UNHSWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 1984
0R0OLSE (London Stock Exchange)YesCommon StockGBUSDOct 1984
UNHWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1984
UNHH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.2 COM USD0.01BRBRLMay 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 UnitedHe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:40
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.