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 Rating3.7/10
Generated at:2026-06-11 17:41:43
Analysis based on 5 financial reports from periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31. Current price data as of 2026-06-11 close. TTM (Trailing Twelve Months) metrics calculated from available financial data. 60-day trading range data included. Data appears complete for the analysis periods specified.
Overview

UnitedHealth Group is a leading global healthcare company with massive scale and diversified operations across the healthcare value chain. However, recent financial data shows slowing revenue growth, significant profit margin compression, and a current stock price that appears overvalued relative to fundamental performance. The company's long-term competitive advantages remain intact, but near-term challenges warrant caution.

Valuation
2/10
Profitability
4/10
Financial health
5/10
Operation Advice
  • Hold existing positions but do not add new investments at the current price level.
  • Monitor upcoming quarters for signs of margin stabilization or improvement.
  • Consider the calculated reasonable price range of $265-$318 as a potential entry zone.
  • The target price is approximately $292 based on a more conservative earnings multiple given margin pressures.

Valuation

P/E TTM
27.96
P/E LYR
21.96
P/B MRQ
3.24
P/S TTM
--
AI Analysis
  • The current valuation appears full to overvalued with a trailing P/E of 27.96x and forward P/E of 21.96x. The stock trades near the upper end of its recent range ($255.96-$413.00) and above a calculated reasonable price range of $265-$318 based on conservative earnings multiples. The P/B ratio of 3.24x reflects market valuation above book value, while the P/S ratio of 0.82x suggests some value consideration but must be weighed against declining margins.
  • The trailing P/E (PE-TTM) is 27.96x, which is elevated, suggesting the market is pricing in future growth or stability.
  • The forward P/E (dynamic PE) is 21.96x, which is lower and may reflect analyst expectations for earnings recovery.
  • The P/B ratio is 3.24x, indicating the market values the company significantly above its accounting book value, typical for firms with strong intangible assets.
  • The P/S ratio is 0.82x, which for a low-margin business like managed care can be a point of value consideration, but must be weighed against the declining margin trend.
  • The 60-day trading data shows a range from a low near $255.96 to a recent high of $413.00, with the current price near the upper end of this short-term range.
  • Given the high P/E ratio, decelerating revenue growth, and clear pressure on profit margins, the current valuation appears to be Full to Overvalued.
  • The market price seems to be factoring in a robust recovery or stability that the most recent quarterly data does not yet confirm.
  • Based on a more conservative earnings multiple given the margin pressures, a P/E range of 20x-24x on TTM earnings seems appropriate.
  • Using the TTM EPS of $13.23, this implies a fundamental price range of approximately $265 to $318.
  • A target price towards the middle of this range would be approximately $292.
Valuation trend

Profitability

ROE TTM
12.75%
Net margin
5.80%
Gross margin
8.97%
Total revenue
111.72B
AI Analysis
  • Profitability shows massive scale with TTM revenue exceeding $447B annually, but recent data indicates significant margin pressures. Q1 2026 revenue grew only 1.96% year-over-year, a sharp deceleration from 2025. Net margin declined to 5.80% in Q1 2026 from 5.91% in Q1 2025, with full-year 2025 net margin at 2.86% impacted by a -35.90% decline in gross profit. ROE-TTM is 12.75% and ROA-TTM is 3.92%.
  • Revenue for the trailing twelve months (TTM) is enormous, exceeding $447B annually.
  • The most recent Q1 2026 revenue grew a modest 1.96% year-over-year, a significant deceleration from the double-digit growth seen in 2025.
  • Profitability has contracted notably, with the net margin for Q1 2026 at 5.80%, down from 5.91% in Q1 2025.
  • The full-year 2025 net margin was 2.86%, impacted by a -35.90% decline in gross profit.
  • This suggests rising medical costs or pricing pressures are squeezing profitability.
  • Return on Equity (ROE-TTM) is 12.75% and Return on Assets (ROA-TTM) is 3.92%.
  • These are respectable figures, particularly the ROE, which is supported by the company's leverage.
  • The ROA indicates relatively modest earnings generation from its total asset base.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--10.35%12.78%12.91%12.75%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue109.58B221.19B334.35B447.57B111.72B

Financial health

Debt/Asset
66.31%
Current ratio
0.80
Quick ratio
--
Cash ratio
0.80
AI Analysis
  • Financial health shows both strength and areas of concern. The current ratio of 0.80 indicates potential short-term liquidity constraints, though this is common for large insurers with predictable cash flows. The debt-to-asset ratio of 66.31% reflects significant leverage, increasing financial risk. The company generates substantial and consistent operating cash flows which support debt servicing and operations.
  • The current ratio of 0.80 is below 1.0, indicating potential short-term liquidity constraints where current liabilities exceed current assets.
  • This liquidity situation is common for large, efficient insurers with predictable cash flows but warrants monitoring.
  • The debt-to-asset ratio of 66.31% reflects a significant use of leverage.
  • While leverage can enhance returns on equity, it also increases financial risk, especially in a rising interest rate environment or during economic stress.
  • The company generates substantial and consistent operating cash flows (implied by its revenue scale), which supports its ability to service debt and fund operations despite the liquidity metric.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset66.05%66.04%66.44%67.15%66.31%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio0.850.850.820.790.80