UnitedHealth Group Inc.
Find Ratings ReportsUNITEDHEALTH GROUP INC's gross profit margin for the first quarter of its fiscal year 2018 has increased 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 very weak liquidity. Currently, the Quick Ratio is 0.50 which clearly 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 19.40% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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| Income Statement | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 55188.0 | 48723.0 |
| EBITDA ($mil) | 4635.0 | 3946.0 |
| EBIT ($mil) | 4053.0 | 3413.0 |
| Net Income ($mil) | 2836.0 | 2172.0 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 22041.0 | 19352.0 |
| Total Assets ($mil) | 155569.0 | 137157.0 |
| Total Debt ($mil) | 35585.0 | 33901.0 |
| Equity ($mil) | 50036.0 | 41903.0 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 23.81 | 22.51 |
| EBITDA Margin | 8.39 | 8.09 |
| Operating Margin | 7.34 | 7.0 |
| Sales Turnover | 1.33 | 1.38 |
| Return on Assets | 7.21 | 5.52 |
| Return on Equity | 22.42 | 18.08 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 0.71 | 0.71 |
| Debt/Capital | 0.42 | 0.45 |
| Interest Expense | 329.0 | 283.0 |
| Interest Coverage | 12.32 | 12.06 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 969.0 | 965.0 |
| Div / share | 0.75 | 0.63 |
| EPS | 2.87 | 2.23 |
| Book value / share | 51.64 | 43.42 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4046035.0 | 2886931.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 19.18 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 24.63. For additional comparison, its price-to-book ratio of 4.62 indicates a premium versus the S&P 500 average of 3.20 and a premium versus the industry average of 3.59. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, UNITEDHEALTH GROUP INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UNH 21.02 | Peers 19.18 | UNH 14.93 | Peers 11.95 | |||||||||||||||||||||
|
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. |
Premium. 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 premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| UNH 16.93 | Peers 15.93 | UNH 1.20 | Peers 1.01 | |||||||||||||||||||||
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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. |
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 premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| UNH 4.62 | Peers 3.59 | UNH 45.32 | Peers 54.72 | |||||||||||||||||||||
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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 significant 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 trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| UNH 1.11 | Peers 0.96 | UNH 9.83 | Peers 6.82 | |||||||||||||||||||||
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Premium. 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 premium to 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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