Elevance Health (ELV) AI Stock Analysis

• Market Cap: $78.96B
• Dividend Yield: 1.97%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.20
• Revenue Growth: 6.63%
• EPS Growth: -3.26%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Plans
• EPS (TTM): 11.97
• Shares Outstanding: 225,934,600
• 10 Day Avg. Volume: 1,848,827
• 30 Day Avg. Volume: 1,767,239
• PEG Ratio: -10.93
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.99
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: 3.29
• 1Y Price Target: $489.73
• Price Target Upside: 41.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $387.00 ▲(11.89%Upside)

Elevance Health's overall stock score is driven by strong financial performance and strategic growth in key segments like Medicare Advantage. However, technical analysis indicates a bearish trend, and challenges with Medicaid costs and ACA membership effectuation rates present risks. The valuation is reasonable, providing a balanced outlook.

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

Medicaid Pressure

Pockets of emerging pressure include exchanges, slower improvement in Medicaid, and Behavioral.

Membership Trends

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

Utilization Concerns

The exchange business saw higher utilization in April than ELV anticipated.

Elevance Health Business Overview & Revenue Model

Company Description

Elevance Health Inc. (ELV) is a leading healthcare company in the United States, primarily engaged in the health insurance industry. The company operates through various segments, offering a range of health benefit plans and services to individuals, employers, and government entities. Elevance Health provides medical, pharmaceutical, dental, and behavioral health services, as well as disability insurance and life insurance. The company is committed to improving health outcomes and advancing healthcare solutions through innovation and collaboration.

How the Company Makes Money

Elevance 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 Financial Statement Overview

Summary

Elevance Health demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The balance sheet is stable with low leverage, and the cash flow remains healthy despite a decline in free cash flow growth. Opportunities exist for further optimization in net margins and 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
EBITDA	10.09B	9.09B	10.49B	10.13B	6.00B	8.18B
Net Income	5.92B	5.98B	5.99B	5.89B	6.10B	4.57B
Balance Sheet
Total Assets	119.72B	116.89B	108.93B	102.75B	97.46B	86.61B
Cash, Cash Equivalents and Short-Term Investments	7.50B	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	30.00B	31.23B	25.12B	24.11B	23.03B	20.04B
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: 345.86
• 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 345.86 is below the 20-day moving average (MA) of 370.13, below the 50-day MA of 384.16, and below the 200-day MA of 406.77, indicating a bearish trend. The MACD of -10.40 indicates Positive momentum. The RSI at 33.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 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
CVS	79 Outperform	$84.33B	15.68	7.00%	3.99%	4.84%	-26.54%
HUM	77 Outperform	$28.66B	16.79	10.09%	1.50%	10.09%	-12.18%
UNH	73 Outperform	$279.13B	12.86	24.33%	2.92%	8.34%	45.24%
ELV	71 Outperform	$78.96B	13.63	14.24%	1.97%	6.63%	-3.26%
CNC	71 Outperform	$16.22B	4.93	12.59%	―	8.85%	33.30%
CI	68 Neutral	$83.35B	17.29	12.37%	1.95%	24.65%	48.38%
Sector *	52 Neutral	$7.53B	0.20	-61.87%	2.28%	16.72%	1.10%

Elevance Health Corporate Events

Elevance Health Reaffirms 2025 Earnings Guidance

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.

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.