UnitedHealth Group Inc

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UNH : NYSE : Health Care
$177.5 | %
Today's Range: 177.0 - 178.89
Avg. Daily Volume: 3352800.0
05/26/17 - 4:01 PM ET

Financial Analysis


UNITEDHEALTH GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 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 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.14% 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 FY17 Q1 FY16
Net Sales ($mil)48723.044527.0
EBITDA ($mil)3946.03462.0
EBIT ($mil)3413.02960.0
Net Income ($mil)2172.01611.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)19352.013014.0
Total Assets ($mil)137157.0117855.0
Total Debt ($mil)33901.033722.0
Equity ($mil)41903.035169.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin22.5122.95
EBITDA Margin8.097.77
Operating Margin7.06.65
Sales Turnover1.381.41
Return on Assets5.525.1
Return on Equity18.0817.09
Debt Q1 FY17 Q1 FY16
Current Ratio0.710.73
Debt/Capital0.450.49
Interest Expense283.0259.0
Interest Coverage12.0611.43


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)965.0954.0
Div / share0.630.5
EPS2.231.67
Book value / share43.4236.86
Institutional Own % n/a n/a
Avg Daily Volume3518837.03792709.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.94 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 3.95 indicates a premium versus the S&P 500 average of 3.00 and a premium versus the industry average of 3.31. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UNH 21.95 Peers 22.94   UNH 11.78 Peers 11.23

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 15.97 Peers 16.12   UNH 0.63 Peers 1.27

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

UNH is trading at a valuation on par with 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UNH 3.95 Peers 3.31   UNH 25.56 Peers 17.26

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UNH 0.88 Peers 0.86   UNH 13.96 Peers 10.61

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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