UnitedHealth (UNH) AI Stock Analysis

• Market Cap: $281.72B
• Dividend Yield: 2.64%
• Average Volume (3M): 24.70M
• Price to Earnings (P/E): 13.0
• Beta (1Y): -0.15
• Revenue Growth: 8.68%
• EPS Growth: 45.24%
• Country: US
• Employees: 400,000
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Healthcare Plans
• EPS (TTM): 7.20
• Shares Outstanding: 907,140,440
• 10 Day Avg. Volume: 13,988,466
• 30 Day Avg. Volume: 24,698,111
• PEG Ratio: 1.41
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.16
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 2.86
• 1Y Price Target: $367.68
• Price Target Upside: 17.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 69 Neutral
• Price Target: $332.00 ▲(5.89%Upside)

UnitedHealth's strong financial performance and reasonable valuation are overshadowed by bearish technical indicators and challenges detailed in the recent earnings call. The CEO transition adds uncertainty, though the company's strategic growth focus provides some optimism. Investors should monitor the impact of increased care activity and member profile changes on future performance.

Positive Factors

Earnings

The 2026 rate update of +5% should help offset cost trends as UnitedHealth Group tries to recapture margins in 2026.

Leadership

The new CEO is expected to guide conservatively, potentially leaving room for the company to beat guidance.

Strategic Initiatives

UNH plans to provide more transparency around Optum Health with new initiatives related to risk assessment coding.

Negative Factors

Market Rating

Shares of UNH have been downgraded from Buy to Hold, with a reduced price target from $520 to $308, suggesting a lack of expected growth.

Medicare Advantage

There is an expectation that the MA margins are unlikely to return to the target margins in 2026 due to incremental pressure from changes and high-cost trends.

Regulatory Risks

There is further uncertainty due to a potential criminal investigation highlighted in a WSJ article, although UNH has stated they have not been notified by the DOJ.

UnitedHealth Business Overview & Revenue Model

Company Description

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage and well-being services to individuals age 50 and older addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; Medicaid plans, children's health insurance and health care programs; health and dental benefits; and hospital and clinical services. The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement, and financial services. This segment serves individuals directly through care delivery systems, employers, payers, and government entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.

How the Company Makes Money

UnitedHealth Group generates revenue through its diverse range of healthcare services and products. The primary source of income comes from premiums collected by UnitedHealthcare from its insurance products, which cover a broad spectrum of health benefits for both individuals and organizations. OptumHealth contributes to the revenue with its health management and care delivery services, earning money through fees for service and care coordination. OptumInsight derives revenue from providing data analytics, technology solutions, and consulting services to healthcare entities. OptumRx generates income through pharmacy benefit management, including prescription drug sales, home delivery, and specialty pharmacy services. Together, these segments enable UnitedHealth Group to capitalize on the growing demand for integrated healthcare solutions. Strategic partnerships with healthcare providers, government agencies, and technology firms also play a crucial role in expanding its service offerings and market reach, further driving its profitability.

UnitedHealth Financial Statement Overview

Summary

UnitedHealth exhibits a strong financial profile characterized by consistent revenue growth, robust profit margins, and effective cash flow management. The company's leverage is well-controlled, supporting financial stability, while profitability metrics indicate efficient operations. Overall, UnitedHealth is well-positioned within the industry, with a solid foundation for future growth, though ongoing attention to margin stability and leverage is advisable.

Income Statement

UnitedHealth has demonstrated strong revenue growth with a consistent upward trajectory in total revenue over the past years, highlighted by a 22.97% increase from 2021 to 2022. The TTM (Trailing-Twelve-Months) gross profit margin of 21.49% and net profit margin of 5.43% reflect robust profitability. The EBIT and EBITDA margins underscore operational efficiency, with EBIT margin at 8.21% and EBITDA margin at 7.89%. These metrics indicate a solid financial performance, though slight fluctuations in margins warrant monitoring.

Balance Sheet

The balance sheet reflects a stable financial position with a modest debt-to-equity ratio of 0.85, indicating prudent leverage. The return on equity (ROE) of 23.26% for TTM suggests efficient use of equity capital to generate profits. However, the equity ratio at 30.67% shows a moderate level of equity financing. The balance between liabilities and equity appears well-managed, with a focus on maintaining long-term solvency.

Cash Flow

Cash flow analysis reveals strong operational cash generation, with an operating cash flow to net income ratio of 1.29 for TTM, highlighting effective conversion of profits into cash. Free cash flow has shown consistent growth, with a recent increase of 20.10% from 2024 to TTM. The free cash flow to net income ratio of 1.12 reflects healthy cash flow management, ensuring sufficient liquidity for reinvestment and shareholder returns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
407.42B	400.28B	367.53B	322.13B	285.27B	255.64B
	Gross Profit
87.53B	89.40B	86.87B	77.59B	67.33B	65.50B
	EBIT
33.48B	32.29B	32.36B	28.43B	23.97B	22.41B
	EBITDA
32.14B	9.77B	32.52B	31.84B	27.07B	25.30B
	Net Income Common Stockholders
22.11B	14.40B	22.38B	20.12B	17.29B	15.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.50B	29.11B	29.63B	27.91B	23.91B	19.78B
	Total Assets
283.68B	298.28B	273.72B	245.71B	212.21B	197.29B
	Total Debt
70.59B	76.90B	62.54B	57.62B	46.00B	43.47B
	Net Debt
28.68B	51.59B	37.11B	34.26B	24.63B	26.55B
	Total Liabilities
193.06B	195.69B	174.80B	159.36B	135.73B	126.75B
	Stockholders Equity
81.31B	92.66B	88.76B	77.77B	71.76B	65.49B
Cash Flow		Free Cash Flow
24.86B	20.70B	25.68B	23.40B	19.89B	20.12B
	Operating Cash Flow
28.52B	24.20B	29.07B	26.21B	22.34B	22.17B
	Investing Cash Flow
-14.26B	-20.53B	-15.57B	-28.48B	-10.37B	-12.53B
	Financing Cash Flow
-11.64B	-3.51B	-11.53B	4.23B	-7.46B	-3.59B

UnitedHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 313.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNH, the sentiment is Negative. The current price of 313.53 is above the 20-day moving average (MA) of 303.64, below the 50-day MA of 391.84, and below the 200-day MA of 506.30, indicating a neutral trend. The MACD of -18.79 indicates Negative momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 87.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNH.

UnitedHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNC	77 Outperform	$27.50B	8.25	12.59%	―	8.85%	33.30%
HUM	72 Outperform	$28.00B	16.40	10.09%	1.51%	10.09%	-12.18%
ELV	71 Outperform	$86.07B	14.86	14.24%	1.80%	6.63%	-3.26%
UNH	69 Neutral	$281.72B	12.98	24.33%	2.64%	8.68%	45.24%
CI	69 Neutral	$82.87B	17.19	12.37%	1.92%	24.65%	48.38%
CVS	69 Neutral	$83.14B	15.70	7.00%	4.01%	4.84%	-26.54%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%

UnitedHealth Corporate Events

UnitedHealth Cancels Stock Units for Former CEO

On June 2, 2025, UnitedHealth Group’s Board of Directors canceled performance-based restricted stock units for former CEO Andrew Witty following his retirement. During the same day, the company held its 2025 Annual Meeting of Shareholders, where nine directors were elected, executive compensation was approved, Deloitte & Touche LLP’s appointment was ratified, and a shareholder proposal on golden parachutes was rejected.

The most recent analyst rating on (UNH) stock is a Buy with a $647.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.

UnitedHealth Board Accepts Andrew Witty’s Resignation

On May 20, 2025, UnitedHealth Group’s Board of Directors accepted the resignation of Andrew Witty as a director, effective immediately. Consequently, Mr. Witty will not seek re-election at the upcoming annual shareholder meeting on June 2, 2025.

The most recent analyst rating on (UNH) stock is a Buy with a $647.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.

UnitedHealth CEO Transition Amid Financial Uncertainty

On May 12, 2025, UnitedHealth Group announced that CEO Andrew Witty would step down, with Steve Hemsley taking over as CEO while continuing as Board Chair. The company also suspended its 2025 outlook due to higher-than-expected medical expenditures, with plans to return to growth in 2026.

The most recent analyst rating on (UNH) stock is a Buy with a $647.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.