Elevance Health (ELV) AI Stock Analysis

• Market Cap: $78.21B
• Dividend Yield: 1.98%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 14.4
• 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: 1,718,436
• 30 Day Avg. Volume: 1,534,022
• 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: 0.83
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.43
• Enterprise Value/Ebitda: 6.51
• 1Y Price Target: $390.69
• Price Target Upside: 12.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 30
• Revenue Forecast (FY): $198.54B

• Rating: 76 Outperform
• Price Target: $385.00 ▲(11.28% Upside)

Elevance Health's overall stock score is driven by strong financial performance and attractive valuation metrics. The company's strategic initiatives in technology and Carelon are promising, but challenges in Medicaid margins and ACA market pressures present risks. The technical indicators suggest positive momentum, while the recent board appointment supports future strategic direction.

Positive Factors

Revenue Growth

The 12% revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Technology Investments

Strategic investments in AI and technology enhance operational efficiency and customer experience, positioning Elevance Health for sustainable growth.

Board Expertise

Adding experienced leadership strengthens governance and strategic oversight, aligning with long-term goals and improving health outcomes.

Negative Factors

Medicaid Margin Decline

Declining Medicaid margins due to elevated acuity and utilization trends could pressure profitability and financial stability.

ACA Market Challenges

Challenges in the ACA market, including cost trends and morbidity, may impact operating margins and market competitiveness.

Subsidies Expiration Risk

Potential expiration of enhanced subsidies could reduce ACA membership and increase risk pool morbidity, affecting revenue and market position.

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 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 demonstrates strong revenue growth and a stable balance sheet with low leverage. However, the decline in net profit margin and free cash flow growth indicates potential areas for improvement. The company maintains a solid capital structure, but operational efficiency and cash flow management could be enhanced to sustain long-term growth.

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	35.00B	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	32.10B	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: 345.96
• 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 345.96 is above the 20-day moving average (MA) of 335.55, above the 50-day MA of 334.26, and below the 200-day MA of 353.26, indicating a neutral trend. The MACD of 6.95 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 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
ELV	76 Outperform	$78.21B	14.39	12.61%	1.98%	11.96%	-11.11%
UNH	72 Outperform	$302.73B	17.44	18.48%	2.63%	10.48%	24.25%
MOH	71 Outperform	$8.27B	10.06	19.71%	―	13.71%	-18.02%
HUM	69 Neutral	$31.05B	24.20	7.15%	1.36%	9.87%	-5.58%
CVS	64 Neutral	$99.38B	204.57	0.63%	3.42%	6.71%	-90.11%
CNC	58 Neutral	$19.15B	-3.59	-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 Appoints Amy Schulman as Independent Director

On December 10, 2025, Elevance Health announced the appointment of Amy W. Schulman as an independent director, effective January 12, 2026, with a term expiring at the 2028 annual meeting of shareholders. Schulman, a recognized healthcare executive and governance leader, will serve on the Audit and Finance Committees, bringing her expertise in healthcare innovation and regulatory strategy to the board. This appointment is part of Elevance Health’s strategy to ensure diverse and future-focused leadership, aligning with its long-term goals and stakeholder priorities. Schulman’s addition is expected to enhance the board’s ability to deliver long-term value for shareholders and improve health outcomes.

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.

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.