Elevance Health (ELV) AI Stock Analysis

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Elevance Health

(NYSE:ELV)

Rating:61Neutral

Price Target:

$319.00

▲(5.47%Upside)

Elevance Health's overall score reflects strong financial performance and reasonable valuation, overshadowed by bearish technical indicators and challenges highlighted in the earnings call. The strategic focus on cost management and operational efficiency is crucial to address market headwinds.

Positive Factors

Business Momentum

Carelon Services revenue increased significantly, driven by mergers and acquisitions, with new behavioral and post-acute risk-based contracts highlighting business momentum.

Earnings Potential

Price target for Elevance Health, Inc. has been raised from $463 to $510, reflecting increased confidence in its future earnings potential.

Medicaid Performance

Medicaid performance is expected to improve, which supports the case for above-average EPS growth and diminishing controversies.

Negative Factors

Earnings Uncertainty

Analyst downgrades ELV to Market Perform due to no apparent earnings growth in 2026 and potential risks across almost all lines of business.

Exchange and Medicaid Risks

Recent peer disclosures suggest there is some risk on Exchange and Medicaid assumptions.

Sector Challenges

The sector challenges may worsen before improving, with volatility in Medicaid and potential negative impacts on margins.

Elevance Health (ELV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$77.85B

Dividend Yield1.98%

Average Volume (3M)1.73M

Price to Earnings (P/E)12.9

Beta (1Y)0.19

Revenue Growth10.21%

EPS GrowthN/A

CountryUS

Employees104,200

SectorHealthcare

Sector Strength44

IndustryMedical - Healthcare Plans

Share Statistics

EPS (TTM)8.84

Shares Outstanding225,934,600

10 Day Avg. Volume1,750,171

30 Day Avg. Volume1,734,545

Financial Highlights & Ratios

PEG Ratio0.01

Price to Book (P/B)1.58

Price to Sales (P/S)0.00

P/FCF Ratio17.08

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue0.08

Enterprise Value/Gross Profit0.41

Enterprise Value/Ebitda1.51

Forecast

1Y Price Target

$448.60

Price Target Upside48.32% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Elevance Health Business Overview & Revenue Model

Company DescriptionElevance 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 MoneyElevance Health makes money primarily through premiums collected from its health insurance plans. These plans are offered to a diverse client base, including individuals, small and large businesses, and government programs such as Medicare and Medicaid. The company also generates revenue from administrative services fees, which are charged to self-insured customers who use Elevance Health’s network and administrative capabilities. Another significant revenue stream comes from pharmacy benefit management services, where Elevance Health manages prescription drug plans for its clients. Additionally, the company earns income through partnerships with healthcare providers and various wellness programs aimed at reducing healthcare costs and improving patient outcomes. These combined efforts contribute to the company’s financial performance, driven by a focus on expanding membership, optimizing operational efficiency, and enhancing customer experience.

Elevance Health Key Performance Indicators (KPIs)

Any

Medical Memberships

Medical Memberships
Tracks the number of individuals enrolled in the company's health plans, indicating market reach, customer base size, and potential revenue from premiums.

Chart InsightsElevance Health's medical memberships have been declining since mid-2023, reflecting challenges in Medicaid costs and lower-than-expected ACA membership effectuation rates. Despite this, the company achieved a slight membership increase in Q1 2025, driven by strategic growth in Medicare Advantage and Carelon Services. The focus on whole-person health and operational excellence, along with digital platform expansion, supports future membership stabilization. However, ongoing cost pressures and elevated utilization trends could continue to impact membership growth.

Data provided by:

Main Street Data

Elevance Health Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q2-2025)

% Change Since: -12.22%|

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Negative

The earnings call highlighted strong growth in Carelon and disciplined cost management but was overshadowed by significant challenges in the Medicaid and ACA markets, leading to a revision in EPS guidance. The combination of increased operating revenue and improvements in operating expense ratio was not enough to offset the concerns over elevated cost trends and risk pool issues.

Q2-2025 Updates

Positive Updates

Strong Performance in Carelon

Carelon Rx grew operating revenue by over 20% with traction in larger clients and scaling specialty pharmacy assets. Carelon Services delivered greater than 50% growth in revenue and operating gain through expansion of risk-based relationships and integration of CareBridge.

Disciplined Cost Management

Elevation Health delivered adjusted EPS consistent with expectations, reflecting disciplined cost management across key parts of the business.

Increased Operating Revenue

Operating revenue increased by 14% year-over-year to $49.4 billion, driven by higher premium yields and recent acquisitions in home health and specialty pharmacy.

Improvements in Operating Expense Ratio

Adjusted operating expense ratio improved by 140 basis points year-over-year, reflecting ongoing strategic investments.

Negative Updates

Revised Full-Year EPS Guidance

The full-year 2025 adjusted EPS guidance was revised to approximately $30, reflecting elevated medical cost trends across ACA and slower Medicaid rate alignment.

Decreased Medical Membership

Medical membership decreased by approximately 200,000 sequentially, driven by a reduction in Medicaid membership and lower effectuation rates in the ACA business.

Increased Benefit Expense Ratio

The consolidated benefit expense ratio increased by 260 basis points year-over-year to 88.9%, driven by ACA and Medicaid businesses.

Challenges in Medicaid and ACA Markets

Elevated medical cost trends and slower-than-expected Medicaid rate alignment pose significant challenges, with expectations that elevated trends will persist.

Risk Pool Acuity Issues

Increased morbidity in the ACA market due to shifts in the risk pool, particularly from Medicaid to ACA, impacting medical costs negatively.

Company Guidance

During the Elevance Health Second Quarter 2025 Earnings Conference Call, CEO Gail Boudreaux announced a revised full-year 2025 adjusted EPS guidance of approximately $30, down from previous expectations. This adjustment reflects pressures such as elevated medical cost trends in the ACA market and slower-than-expected Medicaid rate alignment. The call highlighted a strategic focus on managing costs and reinforcing operational foundations to support long-term value creation. In the second quarter, Elevance Health reported a GAAP diluted EPS of $7.72 and an adjusted EPS of $8.84, with operating revenue reaching $49.4 billion, a 14% increase year-over-year. The consolidated benefit expense ratio rose to 88.9%, up 260 basis points from the previous year, while the adjusted operating expense ratio improved by 140 basis points to 10.0%. The company ended the quarter with 45.6 million medical members, a sequential decrease of approximately 200,000. Looking forward, Elevance Health is focusing on stabilizing trends, particularly in high-cost areas, and leveraging technology to enhance care delivery and payment integrity.

Elevance Health Financial Statement Overview

Summary

Elevance Health shows strong revenue growth and stable profitability. The balance sheet indicates rising leverage but maintains financial stability. Cash flows are positive, though recent declines suggest challenges in maintaining growth.

Income Statement

Very Positive

Elevance Health has demonstrated strong revenue growth over the years, with a notable increase from $104.2 billion in 2019 to $176.8 billion in 2024. The gross profit margin is robust, reflecting efficient cost management. However, the EBIT and EBITDA margins have seen slight fluctuations, indicating some variability in operational efficiency. The net profit margin remains stable, showcasing consistent profitability.

Balance Sheet

Positive

The company's balance sheet reflects a solid equity base with a debt-to-equity ratio that has increased over time, suggesting rising leverage. Despite this, the return on equity remains healthy, indicating effective use of shareholder funds. The equity ratio has slightly decreased, but the company maintains a strong asset base, supporting its financial stability.

Cash Flow

Positive

Elevance Health's cash flow statements reveal a positive trend in free cash flow, although there was a decline in 2024 compared to previous years. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.81B	171.34B	156.59B	138.64B	121.87B
Gross Profit	157.26B	47.01B	39.95B	35.99B	33.82B
EBITDA	9.09B	10.49B	10.13B	6.00B	8.18B
Net Income	5.98B	5.99B	5.89B	6.10B	4.57B
Balance Sheet
Total Assets	116.89B	108.93B	102.75B	97.46B	86.61B
Cash, Cash Equivalents and Short-Term Investments	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	31.23B	25.12B	24.11B	23.03B	20.04B
Total Liabilities	75.46B	69.52B	66.42B	61.33B	53.42B
Stockholders Equity	41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow
Free Cash Flow	4.55B	6.76B	7.25B	7.28B	9.67B
Operating Cash Flow	5.81B	8.06B	8.40B	8.36B	10.69B
Investing Cash Flow	-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
Financing Cash Flow	1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

Technical Analysis Sentiment

Negative

Last Price302.45

Price Trends

50DMA

376.25

Negative

100DMA

397.20

Negative

200DMA

402.05

Negative

Market Momentum

MACD

-14.92

Positive

RSI

23.68

Positive

STOCH

18.77

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Negative. The current price of 302.45 is below the 20-day moving average (MA) of 358.16, below the 50-day MA of 376.25, and below the 200-day MA of 402.05, indicating a bearish trend. The MACD of -14.92 indicates Positive momentum. The RSI at 23.68 is Positive, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELV.

Elevance Health Risk Analysis

Elevance Health disclosed 28 risk factors in its most recent earnings report. Elevance Health reported the most risks in the "Ability to Sell" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Elevance Health Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	77 Outperform	$26.78B	15.69	10.09%	1.56%	10.09%	-12.18%
UNH	73 Outperform	$265.33B	12.04	24.33%	3.02%	8.34%	45.24%
CVS	72 Outperform	$80.71B	15.12	7.00%	4.17%	4.84%	-26.54%
CNC	70 Outperform	$14.93B	4.53	12.59%	―	8.85%	33.30%
CI	68 Neutral	$81.70B	16.53	12.37%	1.98%	24.65%	48.38%
ELV	61 Neutral	$77.85B	12.87	12.48%	1.98%	10.21%	―
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%

* Healthcare Sector Average

Performance Comparison

ELV

Elevance Health

302.45

-189.89

-38.57%

CNC

Centene

29.14

-37.10

-56.01%

Cigna

298.28

-31.66

-9.60%

CVS

CVS Health

63.30

6.36

11.17%

HUM

Humana

223.55

-158.74

-41.52%

UNH

UnitedHealth

288.07

-266.78

-48.08%

Elevance Health Corporate Events

Financial Disclosures

Elevance Health Reaffirms 2025 Earnings Guidance

Neutral

May 28, 2025

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.

Executive/Board ChangesShareholder Meetings

Elevance Health Holds Annual Shareholders Meeting

Neutral

May 14, 2025

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025