Elevance Health (ELV) AI Stock Analysis

• Market Cap: $84.11B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.17
• Revenue Growth: 6.63%
• EPS Growth: -3.26%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Plans
• EPS (TTM): 11.97
• Shares Outstanding: 225,934,600
• 10 Day Avg. Volume: 2,182,489
• 30 Day Avg. Volume: 1,679,583
• PEG Ratio: -404.09
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $497.67
• Price Target Upside: 32.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $415.00 ▲(10.38%Upside)

Elevance Health's overall score of 71 reflects a strong financial foundation with consistent revenue growth and solid profitability, though offset by technical weaknesses and challenges in the Medicaid segment. Valuation is fair, but not compelling enough alone to drive a strong buy recommendation. The earnings call provided positive strategic updates, yet acknowledged ongoing cost pressures. Overall, this positions Elevance Health as a stable investment with areas for improvement, especially in technical momentum and cost management.

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.

Revenue Growth

Elevance Health's revenue increased by 15.4% year over year, surpassing previous estimates.

Negative Factors

Commercial Risk Retention

HIX effectuation and commercial risk retention are trending weaker than original expectations, leading to a guidance cut in commercial risk membership.

Health Benefits Performance

The Health Benefits division's EBIT margin fell short of expectations, negatively impacting overall performance.

Membership Attrition

The company expects membership attrition in the second quarter as effectuation rates on renewing members are tracking below initial expectations.

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 makes money primarily through the sale of health insurance plans, which constitute its main revenue stream. The company generates income by providing a variety of insurance products, including private individual and group plans, as well as government-sponsored programs like Medicaid and Medicare Advantage. Premiums paid by members, both individuals and employers, form the bulk of its revenue. Additionally, Elevance Health earns from administrative fees for managing healthcare plans for other organizations. Significant partnerships with healthcare providers and pharmaceutical companies enhance its service offerings and allow for negotiated cost savings, which can lead to improved margins. The company's focus on value-based care arrangements also plays a role in its financial performance by incentivizing better health outcomes and cost efficiency.

Elevance Health Financial Statement Overview

Summary

Elevance Health demonstrates strong financial performance with robust revenue growth and solid profitability metrics. The balance sheet is stable with a low debt-to-equity ratio. However, there is room for improvement in net margins and free cash flow generation.

Income Statement

Elevance Health demonstrates robust revenue growth with a consistent upward trajectory, highlighted by a TTM revenue growth rate of 8.38%. The company maintains strong profitability metrics, including a gross profit margin of 62.60% and a notable EBIT margin of 23.67% in TTM. However, the net profit margin is relatively lower at 3.23%, signaling potential areas for cost optimization. Overall, the income statement reflects a healthy financial position with room for profitability enhancement.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 35.50%, indicating financial stability. The debt-to-equity ratio is relatively low at 0.04, suggesting prudent leverage management. Return on equity stands at 13.92%, reflecting efficient use of equity capital. The company shows a strong financial base, though continuous monitoring of liabilities is advisable to maintain balance sheet health.

Cash Flow

Elevance Health's cash flow statement is characterized by a healthy free cash flow, although there is a decline in the free cash flow growth rate of -19.30% in TTM. The operating cash flow to net income ratio is 0.82, indicating effective cash generation relative to net earnings. The company should focus on enhancing free cash flow generation to support future investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
183.12B	176.81B	171.34B	156.59B	138.64B	121.87B
	Gross Profit
114.62B	157.06B	47.01B	39.95B	35.99B	33.82B
	EBIT
7.54B	7.90B	8.74B	8.45B	8.95B	7.71B
	EBITDA
10.09B	9.09B	10.49B	10.13B	6.00B	8.18B
	Net Income Common Stockholders
5.92B	5.98B	5.99B	5.89B	6.10B	4.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.50B	33.49B	36.14B	33.34B	31.15B	29.17B
	Total Assets
119.72B	116.89B	108.93B	102.75B	97.46B	86.61B
	Total Debt
30.00B	31.23B	25.12B	24.11B	23.03B	20.04B
	Net Debt
22.50B	22.94B	18.59B	16.73B	18.15B	14.29B
	Total Liabilities
77.10B	75.46B	69.52B	66.42B	61.33B	53.42B
	Stockholders Equity
42.50B	41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow		Free Cash Flow
3.67B	4.55B	6.76B	7.25B	7.28B	9.67B
	Operating Cash Flow
4.85B	5.81B	8.06B	8.40B	8.36B	10.69B
	Investing Cash Flow
-2.75B	-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
	Financing Cash Flow
-748.00M	1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 375.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 375.98 is below the 20-day moving average (MA) of 401.30, below the 50-day MA of 418.53, and below the 200-day MA of 432.93, indicating a bearish trend. The MACD of -9.71 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 33.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELV.

Elevance Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNC	77 Outperform	$28.07B	8.40	12.59%	―	8.85%	33.30%
CI	74 Outperform	$84.41B	17.51	12.37%	1.81%	25.21%	-29.37%
ELV	71 Outperform	$84.11B	14.52	14.24%	1.77%	6.63%	-3.26%
UNH	69 Neutral	$268.12B	12.36	24.33%	2.84%	8.68%	45.24%
HUM	67 Neutral	$27.15B	15.90	10.09%	1.57%	10.09%	-12.18%
CVS	65 Neutral	$76.95B	14.53	7.00%	4.37%	4.84%	-26.54%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%

Elevance Health Corporate Events

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.

Elevance Health Projects Q1 2025 Earnings Expectations

Elevance Health, Inc. announced its expectations for the first quarter of 2025, projecting a GAAP net income of $9.61 per diluted share, with adjusted net income at $11.97 per diluted share after accounting for net unfavorable items. The company noted that medical cost trends, particularly in its Medicare Advantage business, aligned with their expectations, and they anticipate maintaining their full-year guidance for Medicare Advantage membership and adjusted net income.

Elevance Health Reaffirms 2025 Earnings Guidance to Investors

Elevance Health, Inc. announced that its officers will meet with investors to reaffirm the company’s earnings guidance for 2025, projecting earnings of $30.40 to $31.10 per diluted share, including net unfavorable items, and adjusted earnings of $34.15 to $34.85 per diluted share. The company also maintains its expectations for 2025 year-end total medical enrollment and Medicare Advantage membership, aligning with previous guidance. This announcement underscores Elevance Health’s commitment to transparency with its stakeholders and its strategic focus on maintaining stable enrollment figures and financial performance.