Elevance Health (ELV) AI Stock Analysis

• Market Cap: $72.20B
• Dividend Yield: 1.99%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.26
• Revenue Growth: 11.96%
• EPS Growth: -11.11%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 3.33
• Shares Outstanding: 220,704,670
• 10 Day Avg. Volume: 1,078,464
• 30 Day Avg. Volume: 1,647,507
• PEG Ratio: -5.63
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 24.50
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 9.77
• 1Y Price Target: $389.07
• Price Target Upside: 20.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 25.99
• Revenue Forecast (FY): $194.82B

• Rating: 64 Neutral
• Price Target: $354.00 ▲(9.58% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

ELV scores in the mid-range primarily due to solid underlying financial strength and attractive valuation, partially offset by deteriorating recent cash-flow/margins. The outlook is constrained by earnings-call guidance pointing to 2026 membership and profitability headwinds, and the technical picture remains weak with the stock trading below key moving averages.

Positive Factors

Sustained revenue growth

Multi‑year top‑line expansion demonstrates durable market scale and broad demand across commercial, Medicaid and Medicare lines. Sustained revenue growth supports negotiating leverage with providers, spreads fixed costs, funds digital and care‑management investments, and underpins long‑term competitive positioning.

Services & pharmacy (Carillon) momentum

Rapid external growth in Carilon services and pharmacy builds a fee‑for‑service, higher‑margin revenue stream less correlated with underwriting cycles. Scaling these capabilities diversifies earnings, improves cross‑sell opportunities, and creates durable growth channels that can offset membership volatility.

Manageable leverage and capital base

A solid capital foundation and moderate leverage provide capacity to absorb insurance‑cycle shocks, fund reserves, support targeted investments and share repurchases. Historically healthy ROE indicates productive capital deployment, strengthening resilience through underwriting and regulatory cycles.

Negative Factors

Weakening cash generation

Material decline in operating cash flow and weaker free cash flow reduce financial flexibility to absorb claims volatility, invest in technology and care programs, and sustain capital returns. Persistent cash‑flow erosion raises questions about earnings quality and increases sensitivity to working‑capital timing.

Medicaid losses and membership declines

Projected negative Medicaid margins and sizable membership attrition create structural profitability headwinds because government rates often lag utilization. Sustained weakness in Medicaid and deliberate Medicare portfolio shrinkage compresses consolidated margins and limits underwriting leverage over multiple years.

Regulatory / legal overhang

A congressional subpoena in an ACA premium subsidy probe elevates litigation and compliance risk. Potential findings, restitution or heightened oversight can impose multi‑period costs, constrain ACA segment growth, and require increased reserves and controls, weakening structural growth prospects.

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

Solid overall fundamentals supported by steady multi-year revenue growth and a generally manageable leverage profile. The main detractors are recent margin compression (lower net/operating profitability vs prior years) and a notable decline in operating/free cash flow through 2025, raising near-term quality-of-earnings and cash-conversion concerns.

Income Statement

Revenue has expanded steadily from 2020 to 2025, indicating solid scale and demand. However, profitability has softened recently: net margin declined from ~4.4% (2021) to ~2.8% (2025) and operating profitability is also lower versus the 2022–2024 range. Net income is slightly down versus 2021–2024 despite higher revenue, suggesting cost pressure and/or pricing mix headwinds. Overall: strong top-line trajectory, but weakening margin profile is the key watch item.

Balance Sheet

Leverage looks manageable for a large insurer, with debt-to-equity generally in the ~0.60–0.76 range across 2020–2025 and equity building over time (roughly $33.2B in 2020 to $43.9B in 2025). Returns on equity remain healthy (low-to-mid teens historically), though they have eased in 2025 versus prior years. The main drawback is a modest uptick in leverage and a slight decline in returns recently.

Cash Flow

Cash generation has weakened: operating cash flow fell from ~$10.7B (2020) to ~$4.3B (2025) and free cash flow declined to ~$3.2B (2025). Free cash flow still covers a meaningful portion of earnings in 2025 (~74%), but the downward trend and negative free cash flow growth in the most recent year raise quality-of-earnings and working-capital timing concerns. Overall: still cash-generative, but momentum has deteriorated.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	199.13B	176.81B	171.34B	156.59B	138.64B
Gross Profit	50.90B	49.24B	47.01B	39.95B	35.99B
EBITDA	9.66B	10.48B	10.49B	10.13B	10.03B
Net Income	5.66B	5.98B	5.99B	5.89B	6.10B
Balance Sheet
Total Assets	121.49B	116.89B	108.93B	102.75B	97.46B
Cash, Cash Equivalents and Short-Term Investments	9.49B	8.29B	6.53B	7.39B	4.88B
Total Debt	33.23B	32.70B	26.65B	25.80B	24.89B
Total Liabilities	77.47B	75.46B	69.52B	66.42B	61.33B
Stockholders Equity	43.88B	41.31B	39.31B	36.24B	36.06B
Cash Flow
Free Cash Flow	3.17B	4.55B	6.76B	7.25B	7.28B
Operating Cash Flow	4.29B	5.81B	8.06B	8.40B	8.36B
Investing Cash Flow	-1.34B	-5.17B	-5.57B	-4.56B	-9.64B
Financing Cash Flow	-1.74B	1.19B	-3.35B	-1.32B	423.00M

Elevance Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 323.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 323.05 is below the 20-day moving average (MA) of 337.50, below the 50-day MA of 350.46, and below the 200-day MA of 337.54, indicating a bearish trend. The MACD of -5.49 indicates Positive momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 19.86 is Positive, 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
ELV	64 Neutral	$72.20B	12.98	13.29%	1.99%	11.96%	-11.11%
UNH	63 Neutral	$248.15B	20.70	―	2.69%	10.48%	24.25%
CVS	55 Neutral	$94.37B	53.33	2.35%	3.41%	6.71%	-90.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$20.84B	-3.13	-28.79%	―	14.92%	-286.72%
MOH	49 Neutral	$7.64B	17.02	11.02%	―	13.71%	-18.02%
HUM	46 Neutral	$21.06B	17.76	6.98%	1.38%	9.87%	-5.58%

Elevance Health Corporate Events

Elevance Health Restructures Leadership, Reaffirms 2026 Guidance

On February 26, 2026, Elevance Health announced a restructuring of its leadership to simplify decision-making across its Carelon healthcare services arm and Health Benefits businesses. Executive Vice President and CFO Mark Kaye will take on oversight of Carelon, which includes pharmacy, behavioral health, value-based care, and care delivery operations, while Executive Vice President and Chief Health Benefits Officer Felicia Norwood will lead a consolidated Health Benefits organization spanning commercial and government plans.

As part of the shake-up, Carelon president Peter D. Haytaian will step down from his role effective May 4, 2026, for family reasons and remain as a special advisor through December 31, 2026, to support a smooth transition, with the company emphasizing there is no disagreement underlying his departure. Elevance Health simultaneously reaffirmed its full-year 2026 earnings and benefit expense ratio guidance, signaling confidence that the management changes will not disrupt operational performance or its strategy to scale and execute more efficiently for shareholders, clients, and members.

The most recent analyst rating on (ELV) stock is a Hold with a $358.00 price target. To see the full list of analyst forecasts on Elevance Health stock, see the ELV Stock Forecast page.

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.

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.