UnitedHealth Group Inc

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UNH : NYSE : Health Care
$140.42 -0.37 | -0.26%
Today's Range: 139.66 - 141.71
Avg. Daily Volume: 2,965,300
09/28/16 - 3:03 PM ET

Financial Analysis


UNITEDHEALTH GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. UNITEDHEALTH GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 10.19% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)46485.036263.0
EBITDA ($mil)3714.03274.0
EBIT ($mil)3203.02895.0
Net Income ($mil)1754.01585.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)10974.09802.0
Total Assets ($mil)119603.091423.0
Total Debt ($mil)33198.018071.0
Equity ($mil)36386.033020.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin22.624.85
EBITDA Margin7.989.02
Operating Margin6.897.98
Sales Turnover1.471.51
Return on Assets5.166.68
Return on Equity16.9818.5
Debt Q2 FY16 Q2 FY15
Current Ratio0.70.77
Debt/Capital0.480.35
Interest Expense271.0151.0
Interest Coverage11.8219.17


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)951.0952.0
Div / share0.630.5
EPS1.811.64
Book value / share38.2634.68
Institutional Own % n/a n/a
Avg Daily Volume3069205.03073295.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 20.69 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 3.69 indicates a premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 3.14. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, UNITEDHEALTH GROUP INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UNH 22.07 Peers 20.69   UNH 13.03 Peers 12.71

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

UNH is trading at a valuation on par with 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UNH 15.55 Peers 15.78   UNH 0.70 Peers 0.85

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

UNH is trading at a premium to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UNH 3.69 Peers 3.14   UNH 1.75 Peers 27.83

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

UNH is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, UNH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UNH 0.76 Peers 0.78   UNH 27.41 Peers 14.36

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

UNH has a sales growth rate that significantly exceeds its peers.

 

 

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