Elevance Health (ELV) AI Stock Analysis

• Market Cap: $73.25B
• Dividend Yield: 1.93%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.23
• Revenue Growth: 11.96%
• EPS Growth: -11.11%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.03
• Shares Outstanding: 222,238,770
• 10 Day Avg. Volume: 1,637,652
• 30 Day Avg. Volume: 1,713,730
• 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: 1.43
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 10.44
• 1Y Price Target: $392.07
• Price Target Upside: 16.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 30
• Revenue Forecast (FY): $198.41B

• Rating: 68 Neutral
• Price Target: $351.00 ▲(4.38% Upside)

Elevance Health's overall stock score is driven by strong financial performance and strategic growth initiatives, particularly in the Carelon segment. However, technical indicators suggest potential bearish momentum, and challenges in Medicaid margins and ACA market pressures pose risks. The valuation remains reasonable, providing some investor appeal.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Technology Investments

Strategic investments in technology enhance operational efficiency and customer experience, providing a competitive edge in the healthcare sector.

Carelon Segment Growth

Strong growth in the Carelon segment reflects successful integration and expansion efforts, contributing to diversified revenue streams.

Negative Factors

Medicaid Margin Decline

Declining Medicaid margins could pressure profitability, affecting long-term financial performance and necessitating strategic adjustments.

Challenges in ACA Market

Challenges in the ACA market could lead to reduced profitability and increased risk, impacting the company's financial stability.

Potential Impact of Subsidies Expiration

The potential expiration of subsidies could lead to a contracted marketplace, affecting revenue and increasing the risk of adverse selection.

Elevance Health Business Overview & Revenue Model

Company Description

Elevance Health, formerly known as Anthem, Inc., is a leading health benefits company headquartered in Indianapolis, Indiana. The company operates within the health insurance sector, offering a wide range of health insurance products and services, including medical, dental, vision, and pharmacy coverage. Elevance Health serves individuals, families, and businesses, providing managed care solutions and wellness programs to promote healthier lifestyles. The company also focuses on technology-driven health solutions and partnerships to enhance healthcare delivery and accessibility.

How the Company Makes Money

Elevance Health generates revenue primarily through its health insurance premiums, which are collected from members and employers in exchange for coverage. The company offers various plans, including individual and group health plans, government programs like Medicare and Medicaid, and specialty services. Significant revenue streams include enrollment fees from members, reimbursements from government programs, and payments from employers for employee health insurance plans. Additionally, Elevance Health engages in value-based care initiatives and collaborates with healthcare providers to improve patient outcomes, which can lead to cost savings and enhanced profitability. Partnerships with pharmacy benefit managers and other healthcare organizations further contribute to the company's revenue by optimizing drug costs and improving service delivery.

Elevance Health Financial Statement Overview

Summary

Elevance Health shows consistent revenue growth and a strong balance sheet with low leverage. However, the decline in net profit margin and free cash flow growth indicates potential areas for improvement in operational efficiency and cash flow management.

Income Statement

Elevance Health shows a consistent revenue growth trend with a TTM growth rate of 2.94%. The gross profit margin remains strong at 77.66% for TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 2.84% in TTM, reflecting potential cost pressures or competitive pricing. EBIT and EBITDA margins have also seen a slight decline in TTM, suggesting some operational challenges.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.02 in TTM, indicating strong financial stability and low leverage. Return on equity is healthy at 12.91%, showcasing effective use of equity to generate profits. The equity ratio is solid, reflecting a strong capital structure.

Cash Flow

Elevance Health's cash flow statement shows a decline in free cash flow growth by 29.42% in TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is 0.12, indicating moderate cash generation from operations. The free cash flow to net income ratio remains strong at 76.69%, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.82B	176.81B	171.34B	156.59B	138.64B	121.87B
Gross Profit	151.30B	176.81B	171.34B	156.59B	138.64B	121.87B
EBITDA	10.02B	10.48B	10.49B	10.13B	10.10B	8.18B
Net Income	5.53B	5.98B	5.99B	5.89B	6.16B	4.57B
Balance Sheet
Total Assets	122.75B	116.89B	108.93B	102.75B	97.46B	86.61B
Cash, Cash Equivalents and Short-Term Investments	8.71B	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	929.00M	31.23B	25.12B	24.11B	23.03B	20.04B
Total Liabilities	78.67B	75.46B	69.52B	66.42B	61.33B	53.42B
Stockholders Equity	43.95B	41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow
Free Cash Flow	3.77B	4.55B	6.76B	7.25B	7.28B	9.67B
Operating Cash Flow	4.91B	5.81B	8.06B	8.40B	8.36B	10.69B
Investing Cash Flow	-3.45B	-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
Financing Cash Flow	-566.00M	1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 336.27
• 50DMA: Positive
• 100DMA: Positive
• 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 336.27 is above the 20-day moving average (MA) of 321.49, above the 50-day MA of 331.73, and below the 200-day MA of 358.35, indicating a neutral trend. The MACD of -1.47 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 72.37 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	74 Outperform	$98.89B	203.55	0.63%	3.39%	6.71%	-90.11%
ELV	68 Neutral	$73.25B	13.48	12.61%	1.93%	11.96%	-11.11%
UNH	67 Neutral	$289.01B	16.65	18.48%	2.66%	10.48%	24.25%
HUM	63 Neutral	$27.57B	21.48	7.15%	1.21%	9.87%	-5.58%
MOH	61 Neutral	$7.47B	9.01	19.71%	―	13.71%	-18.02%
CNC	58 Neutral	$19.49B	―	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Elevance Health Corporate Events

Elevance Health Reaffirms 2025 Earnings Guidance

Elevance Health, Inc. has announced that its officers will engage with investors to reaffirm the company’s earnings guidance for the full year 2025. The company expects earnings to be approximately $24.70 per diluted share, including $5.30 per share of net unfavorable items, and adjusted earnings to be around $30.00 per diluted share. Additionally, the benefit expense ratio is anticipated to be approximately 90.0%. These projections are based on current market conditions and operational performance, but actual results may vary if business factors or assumptions change.

The most recent analyst rating on (ELV) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.

Elevance Health Reports Strong Q3 2025 Revenue Growth

Elevance Health, Inc. is a healthcare company that provides a diverse range of medical, pharmacy, behavioral, clinical, home health, and complex care solutions, serving over 109 million consumers. The company operates primarily in the health insurance sector, focusing on improving health outcomes through value-based care partnerships and digital solutions.

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.

Elevance Health Reaffirms 2025 Earnings Guidance

Elevance Health, Inc. announced that its officers will engage with investors to reaffirm the company’s earnings guidance for the full year 2025, projecting approximately $24.10 per diluted share, including net unfavorable items, and $30.00 per diluted share when adjusted. The company also maintains its guidance for a benefit expense ratio of about 90.0% for 2025, reflecting its current market and operational assessments. These projections highlight Elevance Health’s strategic positioning and operational expectations, although actual results may vary due to changing business factors.

The most recent analyst rating on (ELV) stock is a Buy with a $355.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.