Elevance Health (ELV) AI Stock Analysis

• Market Cap: $65.86B
• Dividend Yield: 2.27%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.24
• Revenue Growth: 10.21%
• EPS Growth: -17.79%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Plans
• EPS (TTM): 8.84
• Shares Outstanding: 225,178,300
• 10 Day Avg. Volume: 2,561,859
• 30 Day Avg. Volume: 2,887,301
• 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: 1.79
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 0.62
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $358.75
• Price Target Upside: 21.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 71 Outperform
• Price Target: $315.00 ▲(6.99% Upside)

Elevance Health's overall stock score is primarily supported by strong financial performance and favorable valuation metrics. However, bearish technical analysis and challenges highlighted in the earnings call, such as cost pressures and membership declines, moderate the score. The company's ability to navigate these challenges will be crucial for its future performance.

Positive Factors

Earnings Performance

Adjusted EPS of $8.84 was above estimates, indicating better-than-expected earnings performance.

Revenue Growth

Operational revenue of $49.4 billion grew by 14.3% year-over-year and exceeded estimates.

Service Revenue Performance

Carelon Services revenue increased by 63.7% year-over-year, showcasing strong performance.

Negative Factors

Earnings Guidance

The company revised full year 2025 guidance based on elevated cost trend in HIX and a slower-than-expected recovery in MDCD.

Medicaid Challenges

The Medicaid & Exchange books will see continued elevated utilization, particularly in ER visits, behavioral health, and some specialty Rx.

Stock Sell-off

The stock sold off as the magnitude of the cut was bigger than expected.

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 demonstrates strong revenue growth and operational efficiency, supported by a robust balance sheet with low leverage. However, profitability and cash flow conversion present areas for improvement, particularly with a net profit margin of 2.96% and a decline in operating cash flow.

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: Neutral
• Last Price: 294.43
• 50DMA: Negative
• 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 Neutral. The current price of 294.43 is above the 20-day moving average (MA) of 285.63, below the 50-day MA of 335.58, and below the 200-day MA of 383.96, indicating a neutral trend. The MACD of -13.00 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELV.

Elevance Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	75 Outperform	$33.07B	21.10	9.03%	1.26%	9.88%	-7.25%
CVS	73 Outperform	$83.09B	18.28	5.95%	4.04%	6.27%	-36.28%
CI	73 Outperform	$74.87B	15.32	12.31%	2.03%	20.93%	43.98%
ELV	71 Outperform	$65.86B	12.45	12.48%	2.27%	10.21%	-17.79%
UNH	68 Neutral	$236.90B	11.33	23.14%	3.13%	9.98%	52.31%
CNC	58 Neutral	$12.85B	6.47	7.50%	―	12.96%	-23.25%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%

Elevance Health Corporate Events

Elevance Health Elects Steven H. Collis as Director

On July 28, 2025, Elevance Health announced the election of Steven H. Collis as an independent director, effective August 1, 2025. Collis, a seasoned healthcare executive, will join the Audit and Finance Committees, enhancing the board’s expertise and governance. His appointment aligns with Elevance Health’s strategy to refresh its board to support growth and stakeholder needs in the evolving healthcare market.

The most recent analyst rating on (ELV) stock is a Buy with a $600.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.

Elevance Health Reaffirms 2025 Earnings Guidance

Elevance Health, Inc. announced that its officers will meet with investors to reaffirm the company’s earnings guidance for the full year 2025. The company expects adjusted shareholders’ earnings to range from $34.15 to $34.85 per diluted share, excluding net unfavorable items, and anticipates that 60% of these earnings will be realized in the first half of 2025. This guidance reflects the company’s current assessment of market conditions, regulatory landscape, and operational performance, though actual results may vary based on changes in business factors or assumptions.

The most recent analyst rating on (ELV) stock is a Buy with a $600.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.

Elevance Health Holds Annual Shareholders Meeting

On May 14, 2025, Elevance Health, Inc. held its Annual Meeting of Shareholders where several key decisions were made. The election of directors saw Susan D. DeVore, Bahija Jallal, and Ryan M. Schneider elected for three-year terms. The advisory vote on executive compensation was approved, and the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified. However, a shareholder proposal requesting a report on Diversity, Equity, and Inclusion efforts was not approved.

The most recent analyst rating on (ELV) stock is a Buy with a $600.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.