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 Rating2.7/10
Generated at:2026-04-17 17:42:46
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes real-time and TTM metrics with current price as of 2026-04-17. Analysis covers company basic information, financial condition assessment, profitability analysis, and valuation analysis using US Dollar.
Overview

UnitedHealth Group Incorporated (UNH) is a leading healthcare company with a dominant market position and diversified business model through UnitedHealthcare and Optum segments. The company shows strong revenue growth but faces significant challenges including severe margin compression, declining profitability, high debt load, and weak liquidity. The stock price has recovered from a low but appears overvalued based on trailing earnings, with the market pricing in a profitability recovery that hasn't yet materialized in reported financials.

Valuation
2/10
Profitability
3/10
Financial health
3/10
Operation Advice
  • New money is advised to wait for a better entry point or more concrete evidence of a profitability turnaround.
  • Existing shareholders might hold given the company's strong franchise but should be prepared for volatility.
  • Future quarterly reports will be critical to confirm whether margin pressure is abating.
  • Consider waiting for price to approach the $280-$330 range or until there's evidence of cost control and margin recovery.

Valuation

P/E TTM
19.50
P/E LYR
21.96
P/B MRQ
2.50
P/S TTM
--
AI Analysis
  • The current price of $324.63 appears overvalued on a strict trailing earnings basis, trading above both conservative fundamental targets and P/E-derived ranges. The market is pricing in a significant profitability recovery that hasn't yet materialized in reported financials.
  • The forward P/E is 21.96 and the trailing P/E (TTM) is 19.50, which must be evaluated in context of recent net income decline.
  • The P/B ratio is 2.50, suggesting the market values the company's equity at a premium to book value, justified by profitability but tempered by margin concerns.
  • The P/S ratio is 0.66, a relatively low multiple for a company with double-digit revenue growth, indicating the market is discounting the stock due to severe margin compression.
  • The stock price recovered from a low near $255.96 to current $324.63, with the sharp drop aligning with annual results showing significant profit decline.
  • Using TTM EPS of $13.23 and P/E range of 18x-22x, the implied price range is $238.14 - $291.06.
  • The current market price of $324.63 is significantly above the P/E-derived range, possibly driven by expectations of margin recovery or Optum segment growth.
  • A conservative target using 20x multiple on last reported annual EPS of $13.23 yields $264.60, while an optimistic target with 22x multiple yields $291.06.
  • The stock is overvalued on a strict trailing earnings basis as the current price sits above both conservative fundamental target and P/E-derived range.
Valuation trend

Profitability

ROE TTM
12.91%
Net margin
2.86%
Gross margin
5.21%
Total revenue
447.57B
AI Analysis
  • Revenue growth remains robust at 11.81% year-over-year, but the company faces severe margin compression with net income declining 16.31% and gross margin falling sharply from 9.09% to 5.21%.
  • Revenue growth remains robust at 11.81% year-over-year, reaching $447.57B, demonstrating strong market position and ability to grow top line.
  • Net income attributable to shareholders declined by 16.31% to $12.06B, preceded by a significant -35.64% decline in the prior year (2024 annual).
  • The annual net margin compressed to 2.86% from 3.81% a year prior.
  • The annual gross margin fell sharply to 5.21% from 9.09%.
  • Quarterly data shows gross margin volatility (Q1 2025: 9.29%, Q2: 7.42%, Q3: 6.53%, Annual: 5.21%), suggesting potential cost pressures or business mix changes.
  • The diluted EPS for fiscal year 2025 is $13.23.
  • Bottom-line pressure exists despite revenue growth, indicating profitability challenges.
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--6.70%10.35%12.78%12.91%
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
  • The company's financial health shows mixed signals with weak liquidity (current ratio below 1.0), high debt reliance (67.15% debt-to-asset ratio), but respectable profitability metrics (ROE 12.91%, ROA 3.97%).
  • The current ratio of 0.79 is below 1.0, indicating potential short-term liquidity constraints as current liabilities exceed current assets.
  • The debt-to-asset ratio is 67.15%, reflecting significant reliance on debt financing.
  • High leverage is common in the managed care industry due to predictable cash flows, but this level necessitates careful assessment of interest rate risk and debt servicing capability.
  • The TTM Return on Equity (ROE) is 12.91% and Return on Assets (ROA) is 3.97%, indicating effective, albeit not exceptional, use of shareholder equity and total assets to generate profits.
  • The weak liquidity is a point of concern that requires monitoring.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset65.61%66.05%66.04%66.44%67.15%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio0.830.850.850.820.79