UnitedHealth (UNH) AI Stock Analysis

• Market Cap: $320.35B
• Dividend Yield: 2.39%
• Average Volume (3M): 12.19M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.07
• Revenue Growth: 9.98%
• EPS Growth: 52.31%
• Country: US
• Employees: 400,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 4.08
• Shares Outstanding: 905,673,650
• 10 Day Avg. Volume: 9,065,873
• 30 Day Avg. Volume: 12,187,426
• PEG Ratio: -0.93
• Price to Book (P/B): 5.07
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 22.70
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: $328.67
• Price Target Upside: -8.75% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 72 Outperform
• Price Target: $386.00 ▲(7.16% Upside)

UnitedHealth's overall stock score reflects a strong financial performance and reasonable valuation, but is tempered by technical indicators suggesting potential volatility and significant challenges highlighted in the earnings call. The company's proactive governance changes are a positive factor, but the financial pressures from increased medical costs remain a concern.

Positive Factors

Revenue Growth

The 13% revenue growth reflects strong performance across UnitedHealthcare and Optum, indicating robust demand and market expansion.

Cash Flow Strength

Strong cash flow growth enhances financial flexibility, supporting strategic investments and operational resilience.

Governance Improvements

Strengthened governance and risk management through leadership changes can improve oversight and strategic decision-making.

Negative Factors

Rising Medical Costs

Increased medical costs strain profitability and necessitate strategic adjustments, impacting long-term financial performance.

Medicare Margin Pressure

Higher-than-expected cost trends in Medicare can compress margins, affecting overall profitability and financial health.

Optum Health Underperformance

Underperformance at Optum Health indicates challenges in execution and market conditions, impacting segment profitability.

UnitedHealth Business Overview & Revenue Model

Company Description

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage and well-being services to individuals age 50 and older addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; Medicaid plans, children's health insurance and health care programs; health and dental benefits; and hospital and clinical services. The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement, and financial services. This segment serves individuals directly through care delivery systems, employers, payers, and government entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.

How the Company Makes Money

UnitedHealth generates revenue primarily through its health insurance premiums and fees collected from members in the UnitedHealthcare segment. Key revenue streams include individual and employer-sponsored health plans, Medicare and Medicaid programs, and services provided to government entities. Additionally, the Optum segment contributes significantly to revenue through pharmacy care services, health management solutions, and technology-driven health services. Strategic partnerships with healthcare providers and organizations enhance their service offerings and access to patients, further bolstering their revenue. The company also benefits from economies of scale, which allow it to negotiate better rates with providers and lower costs for members, ultimately driving profitability.

UnitedHealth Financial Statement Overview

Summary

UnitedHealth's financial performance is robust, characterized by strong revenue growth, high profitability, and efficient cash flow management. The company maintains a balanced leverage position with a solid equity base, reducing financial risk. Despite slight fluctuations in profit margins, the overall financial health is commendable, positioning UnitedHealth well within the healthcare plans industry.

Income Statement

UnitedHealth has demonstrated strong revenue growth with a 5.22% increase from 2024 to the TTM period. The gross profit margin is robust at 20.53% for TTM, indicating effective cost management. However, the net profit margin slightly decreased from 3.60% in 2024 to 5.05% in TTM, reflecting efficiency in converting revenue into profit. The EBIT and EBITDA margins are solid at 7.30% and 8.53% respectively, showcasing strong operational performance.

Balance Sheet

The company's balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.79, showcasing moderate leverage. The return on equity stands at 21.21% for TTM, reflecting high profitability relative to shareholder equity. The equity ratio is 32.56%, indicating a solid equity base and mitigated financial risk.

Cash Flow

UnitedHealth displays a strong cash flow position with a 22.05% increase in free cash flow from 2024 to TTM. The operating cash flow to net income ratio is 1.36, suggesting effective cash conversion from earnings. Additionally, the free cash flow to net income ratio is 1.19, indicating healthy cash generation relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.82B	400.28B	371.62B	324.16B	287.60B	257.14B
Gross Profit	88.12B	89.40B	90.96B	79.62B	69.65B	67.00B
EBITDA	34.92B	28.08B	36.33B	31.84B	27.07B	25.30B
Net Income	21.30B	14.40B	22.38B	20.12B	17.29B	15.40B
Balance Sheet
Total Assets	308.57B	298.28B	273.72B	245.71B	212.21B	197.29B
Cash, Cash Equivalents and Short-Term Investments	32.02B	29.11B	29.63B	27.91B	23.91B	19.78B
Total Debt	79.19B	76.90B	67.44B	57.62B	46.00B	43.47B
Total Liabilities	203.79B	195.69B	174.80B	159.36B	135.73B	126.75B
Stockholders Equity	94.72B	92.66B	88.76B	77.77B	71.76B	65.49B
Cash Flow
Free Cash Flow	25.27B	20.70B	25.68B	23.40B	19.89B	20.12B
Operating Cash Flow	28.96B	24.20B	29.07B	26.21B	22.34B	22.17B
Investing Cash Flow	-8.29B	-20.53B	-15.57B	-28.48B	-10.37B	-12.53B
Financing Cash Flow	-18.39B	-3.51B	-11.53B	4.23B	-7.46B	-3.59B

UnitedHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 360.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNH, the sentiment is Positive. The current price of 360.2 is above the 20-day moving average (MA) of 344.71, above the 50-day MA of 306.01, and below the 200-day MA of 396.60, indicating a neutral trend. The MACD of 11.78 indicates Positive momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 79.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNH.

UnitedHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	77 Outperform	$98.23B	21.45	5.95%	3.43%	6.27%	-36.28%
MOH	73 Outperform	$10.53B	9.96	23.93%	―	16.12%	10.99%
UNH	72 Outperform	$320.35B	15.32	23.14%	2.39%	9.98%	52.31%
HUM	71 Outperform	$29.68B	18.94	9.03%	1.25%	9.88%	-7.25%
ELV	71 Outperform	$76.61B	14.48	12.48%	1.93%	10.21%	-17.79%
CNC	70 Outperform	$18.08B	9.57	7.50%	―	12.96%	-23.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

UnitedHealth Corporate Events

UnitedHealth to Reaffirm 2025 Earnings Forecast

Between September 8 and September 10, 2025, UnitedHealth Group plans to meet with investors and analysts to reaffirm its adjusted 2025 earnings per share expectations, previously disclosed in July 2025. The company will discuss the impact of its recent acquisition of Amedisys, completed in August 2025, which is expected to slightly reduce adjusted earnings per share due to associated financing and integration costs.

UnitedHealth Announces New Board Leadership Changes

UnitedHealth Group has announced significant updates to its Board of Directors, including the establishment of a new Public Responsibility Committee and the appointment of F. William McNabb as the new lead independent director. These changes are part of UnitedHealth’s ongoing commitment to a culture of responsibility, integrity, and performance, with the new committee set to enhance oversight of financial, regulatory, and reputational risks, thereby strengthening governance and risk management.

UnitedHealth Appoints Wayne DeVeydt as New CFO

On July 31, 2025, UnitedHealth Group announced the appointment of Wayne S. DeVeydt as Chief Financial Officer, effective September 2, 2025. DeVeydt, with extensive experience in the health care sector, will succeed John F. Rex, who will transition to a strategic advisory role. This leadership change is part of UnitedHealth’s ongoing strategy to enhance its operational efficiency and growth, reflecting its commitment to maintaining a strong leadership team to navigate the evolving health care landscape.

UnitedHealth Cooperates with DOJ on Medicare Inquiry

UnitedHealth Group has initiated cooperation with the Department of Justice following media reports about investigations into its Medicare program participation. The company has begun complying with formal requests and maintains confidence in its practices, supported by independent audits and a court-appointed Special Master’s findings. To ensure transparency and stakeholder confidence, UnitedHealth has launched third-party reviews of its policies and practices, reinforcing its commitment to integrity and effective stewardship of American tax dollars.

UnitedHealth Sells $3 Billion in Notes

On June 17, 2025, UnitedHealth Group agreed to sell various notes totaling $3 billion, with maturities ranging from 2028 to 2055, as part of an underwriting agreement with several major financial institutions. The issuance of these notes, registered under the Securities Act of 1933, is expected to impact the company’s financial strategy and market positioning by potentially enhancing liquidity and funding future operations.