Elevance Health (ELV) AI Stock Analysis

Compare

2,780 Followers

Top Page

Elevance Health

(NYSE:ELV)

Rating:73Outperform

Price Target:

$355.00

▲(11.41% Upside)

Elevance Health's overall stock score reflects strong financial fundamentals and attractive valuation, tempered by technical indicators suggesting limited short-term upside and challenges highlighted in the earnings call. The strategic board appointment adds a positive outlook for future governance and growth.

Positive Factors

Earnings Performance

Adjusted EPS of $8.84 was above estimates, indicating better-than-expected earnings performance.

Revenue Growth

Operational revenue of $49.4 billion grew by 14.3% year-over-year and exceeded estimates.

Service Performance

Carelon Services revenue increased by 63.7% year-over-year, showcasing strong performance.

Negative Factors

Guidance and Forecasting

The company revised full year 2025 guidance based on elevated cost trend in HIX and a slower-than-expected recovery in MDCD.

Price Target Adjustment

Lowering of the Price Target from $484 to $330, reflecting pressures in MDCD and HIX.

Uncertainty and Risk

The lack of clarity into '26 is concerning in light of aforementioned headwinds that could prove more enduring.

Elevance Health (ELV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$71.75B

Dividend Yield2.1%

Average Volume (3M)2.57M

Price to Earnings (P/E)13.6

Beta (1Y)0.24

Revenue Growth10.21%

EPS Growth-17.79%

CountryUS

Employees104,200

SectorHealthcare

Sector Strength51

IndustryMedical - Healthcare Plans

Share Statistics

EPS (TTM)8.84

Shares Outstanding225,178,300

10 Day Avg. Volume2,069,889

30 Day Avg. Volume2,568,946

Financial Highlights & Ratios

PEG Ratio8.48

Price to Book (P/B)2.08

Price to Sales (P/S)0.49

P/FCF Ratio18.87

Enterprise Value/Market Cap1.65

Enterprise Value/Revenue0.62

Enterprise Value/Gross Profit0.62

Enterprise Value/Ebitda11.97

Forecast

1Y Price Target

$357.00

Price Target Upside12.04% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering17

Elevance Health Business Overview & Revenue Model

Company DescriptionElevance Health, formerly known as Anthem, Inc., is a leading health benefits company based in the United States. The company operates in the healthcare sector, primarily focusing on providing a wide range of health insurance products and services. Elevance Health serves millions of members across various segments, including individual, group, and government-sponsored health plans. Its core offerings include medical, dental, vision, and pharmacy benefit management services, as well as specialized solutions such as behavioral health and wellness programs.

How the Company Makes MoneyElevance Health generates revenue primarily through premiums received from its members for health insurance coverage. The company's revenue model is built on various key streams, including individual and group health plans, Medicaid and Medicare programs, and specialty services such as pharmacy benefit management. Additionally, Elevance Health earns income from government contracts and partnerships, especially in the Medicare Advantage and Medicaid markets. The company's strategic collaborations with healthcare providers and technology firms also enhance its service offerings and operational efficiencies, contributing to its overall earnings. Furthermore, Elevance Health invests in data analytics and innovative healthcare solutions, which help reduce costs and improve care quality, ultimately driving profitability.

Elevance Health Key Performance Indicators (KPIs)

Any

Medical Memberships

Medical Memberships
Tracks the number of individuals enrolled in the company's health plans, indicating market reach, customer base size, and potential revenue from premiums.

Chart InsightsElevance Health's medical memberships have declined since 2023, with a notable drop in 2024, primarily due to reduced Medicaid memberships and lower ACA effectuation rates. The recent earnings call highlighted challenges in the ACA and Medicaid markets, including elevated medical costs and slower Medicaid rate alignment, prompting a downward revision in EPS guidance. Despite strong revenue growth in other areas like Carelon, these membership declines and cost pressures underscore significant headwinds in stabilizing core health insurance operations.

Data provided by:

Main Street Data

Elevance Health Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a challenging environment with significant pressures in the ACA and Medicaid markets leading to a downward revision of the full-year outlook. Despite strong revenue growth and segment expansion, the persistent elevated cost trends and revised guidance indicate a cautious approach towards recovery.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Elevance Health reported operating revenue of $49.4 billion, an increase of 14% year-over-year, driven by higher premium yields and recent acquisitions in home health and specialty pharmacy.

Carelon Segment Expansion

Carelon Rx's operating revenue grew by over 20%, and Carelon Services achieved more than 50% revenue growth with the expansion of risk-based relationships and integration of CareBridge.

Stable Medicare Advantage Trends

Medicare Advantage cost trends remained in line with expectations, and stable margins are targeted for the year.

Operating Expense Reduction

The adjusted operating expense ratio improved by 140 basis points year-over-year to 10.0%, reflecting strategic investments in care models and technology.

Negative Updates

Revised Full Year Outlook

Elevance Health revised its full year 2025 adjusted EPS guidance to approximately $30 due to elevated medical cost trends in the ACA and slower-than-expected Medicaid rate alignment.

ACA Market Pressures

The ACA business faces pressure from elevated medical cost trends, primarily due to membership shifts from Medicaid and lower effectuation rates, leading to a market-wide increase in morbidity.

Medicaid Margin Challenges

Medicaid cost trends decelerated more slowly than expected. The company anticipates a prolonged Medicaid margin recovery as states adjust to new acuity levels.

Membership Decline

Medical membership decreased by approximately 200,000 sequentially, driven by a reduction in Medicaid membership and lower effectuation rates in the ACA business.

Company Guidance

During the Elevance Health Second Quarter 2025 Earnings Conference Call, the company provided revised guidance for the full year 2025, setting adjusted EPS expectations to approximately $30. This revision reflects elevated medical cost trends in the ACA market and slower Medicaid rate alignments. Despite these pressures, Elevance Health reported second-quarter GAAP diluted EPS of $7.72 and adjusted diluted EPS of $8.84, with operating revenue increasing by 14% year-over-year to $49.4 billion. The company ended the quarter with 45.6 million medical members, a sequential decrease of approximately 200,000, due to reductions in Medicaid membership and lower effectuation rates in the ACA business. Elevance Health's benefit expense ratio was 88.9%, a 260 basis point increase from the previous year, driven by ACA and Medicaid business dynamics. The company highlighted its continued focus on strategic cost management and care delivery innovations, including AI-enabled tools and value-based care, to stabilize margins and improve long-term earnings potential.

Elevance Health Financial Statement Overview

Summary

Elevance Health demonstrates strong revenue growth and operational efficiency, supported by a robust balance sheet with low leverage. However, profitability and cash flow conversion present areas for improvement, particularly with a net profit margin of 2.96% and a decline in operating cash flow.

Income Statement

Very Positive

Elevance Health demonstrates strong financial performance with a substantial revenue growth rate of 12.85% from the previous year to TTM (Trailing-Twelve-Months). The company maintains a robust gross profit margin of 75.86% and an EBIT margin of 40.41%, indicating efficient cost management and operational effectiveness. However, the net profit margin of 2.96% suggests that profitability could be further optimized.

Balance Sheet

Positive

The balance sheet reflects a solid equity position with an equity ratio of 35.85%, highlighting strong financial stability. The debt-to-equity ratio of 0.05 indicates low financial leverage, reducing risk in volatile market conditions. Return on equity stands at 13.48%, showcasing a decent return for shareholders but with room for improvement.

Cash Flow

Positive

Elevance Health's cash flow analysis shows a decline in operating cash flow by 13.58% in TTM compared to the previous year. The free cash flow to net income ratio of 0.68 indicates moderate conversion of earnings into cash flow. The operating cash flow to net income ratio of 0.85 suggests effective cash management, though there is potential for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.25B	176.81B	171.34B	156.59B	138.64B	121.87B
Gross Profit	189.25B	176.81B	171.34B	156.59B	138.64B	121.87B
EBITDA	9.87B	10.48B	10.49B	10.13B	10.10B	8.18B
Net Income	5.36B	5.98B	5.99B	5.89B	6.16B	4.57B
Balance Sheet
Total Assets	121.94B	116.89B	108.93B	102.75B	97.46B	86.61B
Cash, Cash Equivalents and Short-Term Investments	33.86B	33.49B	36.14B	33.34B	31.15B	29.17B
Total Debt	30.19B	31.23B	25.12B	24.11B	23.03B	20.04B
Total Liabilities	78.09B	75.46B	69.52B	66.42B	61.33B	53.42B
Stockholders Equity	43.72B	41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow
Free Cash Flow	5.34B	4.55B	6.76B	7.25B	7.28B	9.67B
Operating Cash Flow	6.45B	5.81B	8.06B	8.40B	8.36B	10.69B
Investing Cash Flow	-2.62B	-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
Financing Cash Flow	-1.72B	1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price318.65

Price Trends

50DMA

318.46

Positive

100DMA

359.76

Negative

200DMA

377.81

Negative

Market Momentum

MACD

1.23

Negative

RSI

58.77

Neutral

STOCH

54.83

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Neutral. The current price of 318.65 is above the 20-day moving average (MA) of 300.41, above the 50-day MA of 318.46, and below the 200-day MA of 377.81, indicating a neutral trend. The MACD of 1.23 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELV.

Elevance Health Risk Analysis

Elevance Health disclosed 28 risk factors in its most recent earnings report. Elevance Health reported the most risks in the "Ability to Sell" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Elevance Health Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	77 Outperform	$92.78B	20.41	5.95%	3.64%	6.27%	-36.28%
ELV	73 Outperform	$71.75B	13.56	12.48%	2.10%	10.21%	-17.79%
UNH	73 Outperform	$280.64B	13.42	23.14%	2.75%	9.98%	52.31%
HUM	71 Outperform	$36.52B	23.31	9.03%	1.17%	9.88%	-7.25%
MOH	70 Outperform	$9.80B	8.92	23.93%	―	16.12%	10.99%
CNC	63 Neutral	$14.26B	7.18	7.50%	―	12.96%	-23.25%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%

* Healthcare Sector Average

Performance Comparison

ELV

Elevance Health

318.65

-234.90

-42.44%

CNC

Centene

29.04

-51.19

-63.80%

CVS

CVS Health

73.15

18.29

33.34%

HUM

Humana

303.66

-55.09

-15.36%

MOH

Molina Healthcare

180.83

-175.20

-49.21%

UNH

UnitedHealth

309.87

-277.71

-47.26%

Elevance Health Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Elevance Health Elects Steven H. Collis as Director

Positive

Jul 28, 2025

On July 28, 2025, Elevance Health announced the election of Steven H. Collis as an independent director, effective August 1, 2025. Collis, a seasoned healthcare executive, will join the Audit and Finance Committees, enhancing the board’s expertise and governance. His appointment aligns with Elevance Health’s strategy to refresh its board to support growth and stakeholder needs in the evolving healthcare market.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 30, 2025