UnitedHealth Group, Inc. (UNH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Cigna Group

Alignment Healthcare, Inc.

Elevance Health, Inc.

UnitedHealth Group, Inc.

Humana, Inc.

Centene Corp.

Molina Healthcare, Inc.

NeueHealth, Inc.

Oscar Health, Inc.

Why is UnitedHealth Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.91%

The company declared very positive results in Mar'25 after flat results in Dec'24

NET PROFIT(HY) At USD 9,698 MM has Grown at 245.49%
DIVIDEND PER SHARE(HY) Highest at USD 0
DIVIDEND PAYOUT RATIO(Y) Highest at 59.05%

With ROE of 24.13%, it has a fair valuation with a 2.89 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -43.87%, its profits have risen by 42% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -43.87% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to UnitedHealth Group, Inc. should be less than 10%
Overall Portfolio exposure to Healthcare Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Healthcare Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is UnitedHealth Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

UnitedHealth Group, Inc.

-45.4%

-0.64

48.68%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.28%

EBIT Growth (5y)

-322.06%

EBIT to Interest (avg)

-0.49

Debt to EBITDA (avg)

17.72

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

2.35

Tax Ratio

18.59%

Dividend Payout Ratio

52.75%

Pledged Shares

Institutional Holding

90.42%

ROCE (avg)

ROE (avg)

23.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.89

EV to EBIT

EV to EBITDA

77.36

EV to Capital Employed

2.27

EV to Sales

0.79

PEG Ratio

0.28

Dividend Yield

282.88%

ROCE (Latest)

ROE (Latest)

24.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

At USD 9,698 MM has Grown at 245.49%

DIVIDEND PER SHARE(HY)

Highest at USD 0

DIVIDEND PAYOUT RATIO(Y)

Highest at 59.05%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

NET SALES(Q)

Highest at USD 111,616 MM

-6What is not working for the Company

OPERATING PROFIT(Q)

Lowest at USD 5,150 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.61 %

PRE-TAX PROFIT(Q)

Lowest at USD 4,082 MM

NET PROFIT(Q)

Lowest at USD 3,406 MM

EPS(Q)

Lowest at USD 3.74

Here's what is working for UnitedHealth Group, Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 111,616 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 59.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 1,084 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for UnitedHealth Group, Inc.

Operating Profit

Lowest at USD 5,150 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 4.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 4,082 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -27.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 3,406 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 3.74

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)