UnitedHealth Group Incorporated(UNH) - Stock detail

UnitedHealth Group Incorporated

US
UNH
UnitedHealth Group Incorporated(Listing date: 10/19/1984)

UnitedHealth Group Incorporated is a Delaware corporation. It is a diversified company dedicated to helping people live healthy lives and work better. The company provides a wide range of products and services through two distinct platforms: UnitedHealthcare, which offers healthcare coverage and benefit services; and Optum, which provides information and technology-enabled health services.

AI Value AnalystHold
Overall Rating4.3/10
Generated at:2026-03-04 16:36:34
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes annual and quarterly financial statements, market valuation data as of 2026-03-05, and comprehensive fundamental analysis metrics.
Overview

UnitedHealth Group is a leading healthcare company with strong revenue growth but facing significant margin compression and profitability challenges. The company maintains market leadership with diversified healthcare segments but shows mixed financial health with liquidity constraints and moderate leverage.

Valuation
5/10
Profitability
3/10
Financial health
5/10
Operation Advice
  • Existing shareholders should maintain positions while monitoring margin trends.
  • New investors might consider waiting for clearer signs of margin stabilization or more attractive entry points below $280.
  • Target price ranges: conservative $275-$300, base case $300-$325, optimistic $325-$350.

Valuation

P/E TTM
21.77
P/E LYR
21.96
P/B MRQ
2.79
P/S TTM
--
AI Analysis
  • Current valuation multiples appear reasonable but not compellingly cheap, with P/E of 21.77, P/B of 2.79, and P/S of 0.59 indicating potential undervaluation relative to sales. The 18% price decline from recent highs partially reflects challenges but may not fully account for ongoing margin pressures.
  • Current P/E multiple of ~22x is reasonable for a healthcare leader but reflects premium pricing
  • P/B ratio of 2.79x suggests moderate premium to book value
  • P/S ratio of 0.59x indicates potential undervaluation relative to sales
  • Valuation multiples appear fair relative to historical averages and industry peers
  • Significant price decline from January highs (~$356) to current levels (~$292) represents approximately 18% correction, potentially creating value opportunity
  • Conservative estimate target price: $275-$300 based on 20-22x P/E multiple on normalized earnings
  • Base case estimate: $300-$325 reflecting historical average multiples and growth potential
  • Optimistic scenario: $325-$350 if margin pressures ease and growth accelerates
Valuation trend

Profitability

ROE TTM
12.51%
Net margin
2.86%
Gross margin
5.21%
Total revenue
447.57B
AI Analysis
  • Profitability shows significant challenges with gross margin compression from 9.09% to 5.21% and net margin decline from 3.81% to 2.86%. Return metrics are solid but declining, with ROE at 12.51% (down from 15.88%) and ROA at 3.97%.
  • Return on Equity (ROE): 12.51% (TTM) - Solid but declining from previous 15.88%
  • Return on Assets (ROA): 3.97% (TTM) - Moderate efficiency in asset utilization
  • Gross Margin: 5.21% (2025 annual) vs 9.09% (2024) - Significant compression
  • Net Margin: 2.86% (2025) vs 3.81% (2024) - Continuing pressure on bottom-line profitability
  • Margin decline appears consistent across recent quarters, indicating structural rather than temporary challenges
  • Q1 2025 showed exceptional growth (546.56% net income growth) followed by normalization
  • Recent quarters show revenue growth stability (9.80%-11.65% range) but margin volatility
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--6.70%10.35%12.78%12.51%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue400.28B109.58B221.19B334.35B447.57B

Financial health

Debt/Asset
67.15%
Current ratio
0.79
Quick ratio
--
Cash ratio
0.79
AI Analysis
  • Mixed financial health with current ratio of 0.79 indicating potential liquidity constraints, moderate debt-to-equity of 67.15%, and strong revenue growth of 11.81% year-over-year to $447.57B.
  • Current Ratio: 0.79 (below optimal level of 1.0+) indicating potential short-term liquidity constraints
  • Sub-1.0 current ratio is common in healthcare services companies with predictable cash flows
  • Debt-to-Equity: 67.15% (moderate leverage for the industry)
  • Leverage ratio is manageable but requires monitoring given rising interest rate environments
  • Total Revenue: $447.57B (2025 annual), representing 11.81% year-over-year growth
  • Consistent revenue growth demonstrates strong market position and demand for healthcare services
  • Gross Profit: $23.32B (-35.90% YoY) with gross margin compression to 5.21%
  • Net Income: $12.06B (-16.31% YoY) with net margin of 2.86%
  • Margin compression suggests pricing pressures or increased costs in the healthcare sector
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset65.61%66.05%66.04%66.44%67.15%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.830.850.850.820.79