UNITEDHEALTH GROUP INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. UNITEDHEALTH GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.83% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||32759.0||30624.0|
|Net Income ($mil)||1602.0||1570.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||9212.0||10719.0|
|Total Assets ($mil)||85426.0||81863.0|
|Total Debt ($mil)||17517.0||16783.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||26.59||25.63|
|Return on Assets||6.48||6.64|
|Return on Equity||16.97||16.99|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||962.0||998.0|
|Div / share||0.38||0.28|
|Book value / share||33.89||32.08|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3970482.0||3710122.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 29.07 for the Health Care Providers & Services industry and a value on par with the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 2.94 indicates valuation on par with the S&P 500 average of 2.73 and a discount versus the industry average of 3.80. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, UNITEDHEALTH GROUP INC proves to trade at a discount to investment alternatives within the industry.
|UNH 17.94||Peers 29.07||UNH 14.28||Peers 15.04|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
UNH is trading at a significant discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
UNH is trading at a valuation on par to its peers.
|UNH 16.19||Peers 20.28||UNH 6.60||Peers 2.53|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
UNH is trading at a discount to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
UNH trades at a significant premium to its peers.
|UNH 2.94||Peers 3.80||UNH 5.10||Peers -180.20|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
UNH is trading at a discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
UNH is expected to have an earnings growth rate that significantly exceeds its peers.
|UNH 0.75||Peers 0.80||UNH 6.67||Peers 14.21|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
UNH is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
UNH significantly trails its peers on the basis of sales growth
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