Elevance Health (ELV) AI Stock Analysis

• Market Cap: $69.46B
• Dividend Yield: 2.16%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.26
• Revenue Growth: 10.21%
• EPS Growth: -17.79%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 8.84
• Shares Outstanding: 225,178,300
• 10 Day Avg. Volume: 2,113,543
• 30 Day Avg. Volume: 2,042,913
• PEG Ratio: 8.48
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 18.87
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 0.62
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $360.69
• Price Target Upside: 14.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 71 Outperform
• Price Target: $349.00 ▲(11.25% Upside)

Elevance Health's overall score reflects strong financial performance and reasonable valuation, tempered by technical challenges and pressures highlighted in the earnings call. The company's strategic focus on cost management and technology-driven care delivery is crucial for navigating current market headwinds.

Positive Factors

Revenue Growth

The robust revenue growth of 14% YoY, driven by higher premium yields and strategic acquisitions, indicates strong market demand and effective business expansion strategies.

Carelon Segment Expansion

Significant growth in the Carelon segment shows successful diversification and expansion into high-growth areas, enhancing long-term revenue streams and market positioning.

Operating Expense Reduction

The reduction in operating expenses reflects effective cost management and strategic investments, improving operational efficiency and supporting margin sustainability.

Negative Factors

Revised Full Year Outlook

The downward revision of EPS guidance due to rising medical costs highlights ongoing challenges in cost management, potentially impacting profitability and investor confidence.

ACA Market Pressures

Pressures in the ACA market from cost trends and membership shifts suggest structural challenges that could affect future growth and margin stability in this segment.

Medicaid Margin Challenges

Slow recovery in Medicaid margins indicates persistent cost pressures and regulatory adjustments, potentially straining financial performance in the medium term.

Elevance Health Business Overview & Revenue Model

Company Description

Elevance Health Inc. operates as a health benefits company. It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier lives. It serves approximately 118 million people through a portfolio of medical, digital, pharmacy, behavioral, clinical, and care solutions. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health Inc. in June 2022. Elevance Health Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana.

How the Company Makes Money

Elevance Health generates revenue primarily through premiums received from its members for health insurance coverage. The company's revenue model is built on various key streams, including individual and group health plans, Medicaid and Medicare programs, and specialty services such as pharmacy benefit management. Additionally, Elevance Health earns income from government contracts and partnerships, especially in the Medicare Advantage and Medicaid markets. The company's strategic collaborations with healthcare providers and technology firms also enhance its service offerings and operational efficiencies, contributing to its overall earnings. Furthermore, Elevance Health invests in data analytics and innovative healthcare solutions, which help reduce costs and improve care quality, ultimately driving profitability.

Elevance Health Financial Statement Overview

Summary

Elevance Health exhibits strong revenue growth and operational efficiency, supported by a solid balance sheet with low leverage. However, profitability and cash flow conversion present areas for improvement, which slightly dampens the overall financial performance score.

Income Statement

Elevance Health demonstrates strong financial performance with a substantial revenue growth rate of 12.85% from the previous year to TTM (Trailing-Twelve-Months). The company maintains a robust gross profit margin of 75.86% and an EBIT margin of 40.41%, indicating efficient cost management and operational effectiveness. However, the net profit margin of 2.96% suggests that profitability could be further optimized.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 35.85%, highlighting strong financial stability. The debt-to-equity ratio of 0.05 indicates low financial leverage, reducing risk in volatile market conditions. Return on equity stands at 13.48%, showcasing a decent return for shareholders but with room for improvement.

Cash Flow

Elevance Health's cash flow analysis shows a decline in operating cash flow by 13.58% in TTM compared to the previous year. The free cash flow to net income ratio of 0.68 indicates moderate conversion of earnings into cash flow. The operating cash flow to net income ratio of 0.85 suggests effective cash management, though there is potential for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.25B	176.81B	171.34B	156.59B	138.64B	121.87B
Gross Profit	189.25B	176.81B	171.34B	156.59B	138.64B	121.87B
EBITDA	9.87B	10.48B	10.49B	10.13B	10.10B	8.18B
Net Income	5.36B	5.98B	5.99B	5.89B	6.16B	4.57B
Balance Sheet
Total Assets	121.94B	116.89B	108.93B	102.75B	97.46B	86.61B
Cash, Cash Equivalents and Short-Term Investments	33.86B	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	30.19B	31.23B	25.12B	24.11B	23.03B	20.04B
Total Liabilities	78.09B	75.46B	69.52B	66.42B	61.33B	53.42B
Stockholders Equity	43.72B	41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow
Free Cash Flow	5.34B	4.55B	6.76B	7.25B	7.28B	9.67B
Operating Cash Flow	6.45B	5.81B	8.06B	8.40B	8.36B	10.69B
Investing Cash Flow	-2.62B	-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
Financing Cash Flow	-1.72B	1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 313.71
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Positive. The current price of 313.71 is above the 20-day moving average (MA) of 311.81, above the 50-day MA of 302.16, and below the 200-day MA of 369.73, indicating a neutral trend. The MACD of 1.47 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELV.

Elevance Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	77 Outperform	95.02B	20.76	5.86%	3.55%	6.27%	-36.28%
UNH	72 Outperform	304.93B	14.50	21.20%	2.56%	9.98%	52.31%
ELV	71 Outperform	$69.46B	13.13	12.48%	2.16%	10.21%	-17.79%
MOH	71 Outperform	9.49B	8.64	24.55%	―	16.12%	10.99%
CNC	70 Outperform	15.60B	7.85	7.49%	―	12.96%	-23.25%
HUM	70 Outperform	30.39B	20.33	8.64%	1.40%	9.88%	-7.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Elevance Health Corporate Events

Elevance Health Issues New Series of Notes

Elevance Health has announced the issuance of several series of notes maturing between 2028 and 2055, with specific redemption terms and conditions. This strategic financial move allows the company flexibility in managing its debt obligations and may impact its financial positioning and stakeholder relations.

The most recent analyst rating on (ELV) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.