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 Rating4/10
Generated at:2026-06-03 17:40:56
Analysis based on real financial data from 5 quarterly reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Market price data as of 2026-06-03 close. Data includes company basic information, financial condition metrics, profitability analysis, and valuation metrics. Ownership data includes The Vanguard Group's 9.21% stake.
Overview

UnitedHealth Group Incorporated (UNH) is a leading healthcare company with massive scale and an entrenched market position. However, recent fundamental analysis reveals near-term challenges including stagnating profit growth, margin compression, high financial leverage, and tight liquidity. The stock appears fairly valued at its current price, balancing the company's strengths with its current risks.

Valuation
5/10
Profitability
4/10
Financial health
3/10
Operation Advice
  • For existing investors, the recommendation is to Hold.
  • New investors should consider waiting for a more attractive entry point below the $340-$350 range or for clearer signs of a rebound in profitability and margin stability before initiating a position.
  • The stock is currently trading at fair value with no compelling margin of safety.

Valuation

P/E TTM
27.96
P/E LYR
21.96
P/B MRQ
3.24
P/S TTM
--
AI Analysis
  • Valuation presents mixed signals with a low Price-to-Sales ratio being attractive while P/E is in a fair-to-full range. The stock is assessed as fairly valued at the current price of $377, which aligns closely with the fundamental target price of $375 and sits within the reasonable price range of $340-$410.
  • Forward P/E (Dynamic) is 21.96 based on forecasted earnings
  • Trailing P/E (TTM) is 27.96 based on last twelve months of actual earnings
  • The discrepancy between forward and trailing P/E suggests analysts expect earnings growth
  • A P/E in the low 20s is generally reasonable for a large, stable healthcare leader, though not deeply cheap
  • Price-to-Book (P/B) ratio is 3.24, indicating the stock trades at a premium to book value
  • The premium P/B is expected for a company with strong intangible assets and high profitability (ROE > 12%)
  • Price-to-Sales (P/S-TTM) is 0.76, a relatively low multiple for a company of this scale and market position
  • The low P/S suggests the market is valuing each dollar of revenue conservatively, which could be a point of value
  • At $377, the stock is trading at the upper end of the reasonable range ($340-$410) and very close to the calculated target price of $375
  • The current price assessment suggests the stock is fairly valued based on current fundamental data, neither significantly undervalued nor overvalued
Valuation trend

Profitability

ROE TTM
12.75%
Net margin
5.80%
Gross margin
8.97%
Total revenue
111.72B
AI Analysis
  • Profitability metrics show a mixed picture with recent quarterly results indicating pressure on margins. While revenue growth has been healthy annually, net income and gross profit have declined significantly, suggesting margin compression from rising costs.
  • Recent Performance (Q1 2026): Revenue grew modestly by 1.96% year-over-year to $111.72B
  • Net income saw a slight decline of -0.19% in Q1 2026
  • Gross profit decreased by -1.58% in Q1 2026
  • The net margin for Q1 2026 was 5.80%
  • Annual Performance (2025): Full-year 2025 revenue grew healthily by 11.81%
  • Net income declined significantly by -16.31% in 2025
  • Gross profit fell sharply by -35.90% in 2025
  • The margin compression suggests potential issues from rising medical costs or other operational expenses
  • Return on Equity (ROE-TTM) is 12.75%, indicating the company generates reasonable returns on shareholder equity
  • Return on Assets (ROA-TTM) is 3.92%, which is respectable though relatively low, typical for service-based businesses with large asset bases
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 strengths and areas of concern. The company maintains massive scale with over $447B in annual revenue, but faces high financial leverage and tight liquidity that require close monitoring of cash flow and debt management.
  • The current ratio of 0.80 is below the ideal threshold of 1.0, indicating potential short-term liquidity constraints
  • The low current ratio may reflect a business model that efficiently utilizes current liabilities
  • The absence of a quick ratio figure limits a more precise analysis of immediate liquidity
  • The debt-to-asset ratio of 66.31% reflects a significant level of financial leverage
  • High leverage is common in capital-intensive industries like healthcare but increases financial risk
  • The financial risk is particularly concerning in a rising interest rate environment
  • The company maintains massive scale with over $447B in annual revenue (2025)
  • The high leverage and low current ratio suggest investors should monitor cash flow and debt management closely
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset66.05%66.04%66.44%67.15%66.31%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio0.850.850.820.790.80