NYSE:UNH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UNH's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.5%

UNH

3.6%

US Healthcare

0.9%

US Market


1 Year Return

24.9%

UNH

16.4%

US Healthcare

22.1%

US Market

Return vs Industry: UNH exceeded the US Healthcare industry which returned 16.4% over the past year.

Return vs Market: UNH exceeded the US Market which returned 22.1% over the past year.


Shareholder returns

UNHIndustryMarket
7 Day3.5%3.6%0.9%
30 Day-1.3%8.7%10.2%
90 Day12.1%13.6%9.7%
1 Year26.9%24.9%17.9%16.4%24.8%22.1%
3 Year63.7%56.3%41.4%35.7%48.6%38.7%
5 Year226.4%201.7%81.2%68.3%99.6%77.6%

Long-Term 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

Valuation

Is UnitedHealth Group undervalued compared to its fair value and its price relative to the market?

39.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNH ($349.89) is trading below our estimate of fair value ($573.88)

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 (19.8x) compared to the US Healthcare industry average (23.4x).

PE vs Market: UNH is poor value based on its PE Ratio (19.8x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: UNH is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: UNH is overvalued based on its PB Ratio (5.1x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is UnitedHealth Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNH's forecast earnings growth (9.8% per year) is above the savings rate (2.2%).

Earnings vs Market: UNH's earnings (9.8% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: UNH's earnings are forecast to grow, but not significantly.

Revenue vs Market: UNH's revenue (7.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: UNH's revenue (7.7% 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 (26.9%)


Next Steps

Past Performance

How has UnitedHealth Group performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNH has high quality earnings.

Growing Profit Margin: UNH's current net profit margins (6.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: UNH's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: UNH's earnings growth over the past year (25.4%) exceeds its 5-year average (21.5% per year).

Earnings vs Industry: UNH earnings growth over the past year (25.4%) exceeded the Healthcare industry 22.6%.


Return on Equity

High ROE: UNH's Return on Equity (24.4%) 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 ($51.0B) do not cover its short term liabilities ($66.6B).

Long Term Liabilities: UNH's short term assets ($51.0B) do not cover its long term liabilities ($54.4B).


Debt to Equity History and Analysis

Debt Level: UNH's debt to equity ratio (56.9%) is considered high.

Reducing Debt: UNH's debt to equity ratio has reduced from 91.6% to 56.9% over the past 5 years.

Debt Coverage: UNH's debt is well covered by operating cash flow (55.9%).

Interest Coverage: UNH's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNH's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: UNH's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 (26.4%), 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 (22.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Dave Wichmann (57 yo)

3.25yrs

Tenure

US$18,886,989

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 ($USD18.89M) is above average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Wichmann
CEO & Director3.25yrsUS$18.89m0.10%
$ 337.7m
Andrew Witty
Group President1.08yrsUS$16.53m0.00077%
$ 2.5m
John Rex
Executive VP & CFO4.5yrsUS$10.63m0.011%
$ 37.6m
Marianne Short
Executive VP & Chief Legal Officer7.92yrsUS$6.96m0.014%
$ 46.8m
Dirk McMahon
Executive VP & CEO of UnitedHealthcare1.5yrsUS$8.97m0.0067%
$ 22.3m
Thomas Roos
Senior VP & Chief Accounting Officer5.33yrsno data0.0035%
$ 11.6m
Philip McKoy
Chief Information Officerno datano datano data
Ken Ehlert
Chief Scientific Officer & Member of Office of the Chief Executive1.92yrsno datano data
Jennifer Whitlow
Senior VP & Chief Communications Officer1.92yrsno datano data
James Barry
Director of Sales for Western Pennsylvaniano datano datano data
Terry Clark
Chief Marketing Officer & Senior VP6.92yrsno datano data
Patricia Lewis
Executive VP & Chief Human Resources Officerno datano data0.00031%
$ 1.0m

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: UNH's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Wichmann
CEO & Director3.25yrsUS$18.89m0.10%
$ 337.7m
Glenn Renwick
Independent Director19.92yrsUS$379.28k0.0038%
$ 12.5m
Stephen Hemsley
Non-Executive Chairman3.25yrsUS$7.54m0.22%
$ 727.8m
Michele Hooper
Independent Director13.17yrsUS$365.90k0.00036%
$ 1.2m
Richard Burke
Lead Independent Director3.25yrsUS$433.40k0.16%
$ 518.0m
Gail Wilensky
Independent Director27.92yrsUS$368.28k0.0047%
$ 15.4m
Timothy Flynn
Independent Director3.92yrsUS$353.17k0.00021%
$ 694.8k
Frederick McNabb
Independent Director2.83yrsUS$330.33k0.00068%
$ 2.2m
John Noseworthy
Independent Director1.83yrsUS$221.29kno data
Valerie C. Rice
Independent Director3.33yrsUS$346.72kno data

3.3yrs

Average Tenure

66yo

Average Age

Experienced Board: UNH's board of directors are considered experienced (3.3 years average tenure).


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: 1977
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$330.835b
  • Shares outstanding: 948.82m
  • 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
UNHXTRA (XETRA Trading Platform)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
UNHETLX (Eurotlx)YesCommon StockITEUROct 1984
UNHH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 35 REP 1 COMBRBRLMay 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 Analysis2020/12/04 23:13
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.