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. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. UNITEDHEALTH GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.60 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 13.48% 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 | 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) | 47553.0 | 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 | 23.59 | 18.08 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 0.71 | 0.71 |
| Debt/Capital | 0.43 | 0.45 |
| Interest Expense | 329.0 | 283.0 |
| Interest Coverage | 12.32 | 12.06 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 962.0 | 965.0 |
| Div / share | 0.75 | 0.63 |
| EPS | 2.87 | 2.23 |
| Book value / share | 49.43 | 43.42 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3023407.0 | 3794476.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 43.03 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 5.10 indicates a significant premium versus the S&P 500 average of 3.25 and a significant premium versus the industry average of 3.53. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UNH 22.19 | Peers 43.03 | UNH 15.70 | Peers 14.45 | |||||||||||||||||||||
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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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| UNH 17.61 | Peers 16.43 | UNH 1.27 | Peers 0.90 | |||||||||||||||||||||
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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 significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| UNH 5.10 | Peers 3.53 | UNH 45.32 | Peers 52.24 | |||||||||||||||||||||
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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 1.17 | Peers 0.98 | UNH 9.83 | Peers 6.26 | |||||||||||||||||||||
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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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