UnitedHealth (UNH) AI Stock Analysis

• Market Cap: $279.90B
• Dividend Yield: 2.87%
• Average Volume (3M): 14.92M
• Price to Earnings (P/E): 12.9
• Beta (1Y): -0.09
• Revenue Growth: 8.34%
• EPS Growth: 45.24%
• Country: US
• Employees: 400,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Plans
• EPS (TTM): 7.20
• Shares Outstanding: 907,140,440
• 10 Day Avg. Volume: 12,595,392
• 30 Day Avg. Volume: 14,916,547
• 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: $361.91
• Price Target Upside: 17.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 73 Outperform
• Price Target: $364.00 ▲(17.97%Upside)

UnitedHealth Group's stock score reflects a strong financial performance and attractive valuation, partially offset by technical challenges and uncertainty from corporate events. The company's robust financial health and strategic growth initiatives in Medicare Advantage and Optum services are significant strengths. However, recent earnings call challenges and management transitions present risks that investors should monitor closely.

Positive Factors

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

Medicare Advantage Margins

The Medicare Advantage business margin is expected to be 0% in 2025, improving to 2% in 2027, which is below the long-term target of 3-5%.

Regulatory Challenges

The v28 risk model is suspected to disproportionally impact UNH due to outsized RAF scores compared to the industry, posing a challenge to maintaining competitive advantage.

Valuation

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.

UnitedHealth Business Overview & Revenue Model

Company Description

UnitedHealth Group Incorporated (UNH) is a diversified healthcare company headquartered in Minnetonka, Minnesota. It operates through four main segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. UnitedHealthcare provides health insurance benefits and services to individuals and employers, government programs, and Medicare and Medicaid beneficiaries. OptumHealth offers health management services, including wellness programs and care delivery. OptumInsight focuses on health data analytics, technology services, and consulting, while OptumRx provides pharmacy care services, including home delivery and specialty pharmacy services.

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
EBITDA	32.14B	9.77B	32.52B	31.84B	27.07B	25.30B
Net Income	22.11B	14.40B	22.38B	20.12B	17.29B	15.40B
Balance Sheet
Total Assets	309.79B	298.28B	273.72B	245.71B	212.21B	197.29B
Cash, Cash Equivalents and Short-Term Investments	34.29B	29.11B	29.63B	27.91B	23.91B	19.78B
Total Debt	81.27B	76.90B	62.54B	57.62B	46.00B	43.47B
Total Liabilities	204.62B	195.69B	174.80B	159.36B	135.73B	126.75B
Stockholders Equity	95.04B	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: 308.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 308.55 is above the 20-day moving average (MA) of 306.67, below the 50-day MA of 330.50, and below the 200-day MA of 484.85, indicating a neutral trend. The MACD of -5.61 indicates Negative momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 59.82 is Neutral, 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
CVS	79 Outperform	$84.25B	15.91	7.00%	3.99%	4.84%	-26.54%
HUM	77 Outperform	$28.93B	16.95	10.09%	1.45%	10.09%	-12.18%
UNH	73 Outperform	$279.90B	12.90	24.33%	2.87%	8.34%	45.24%
CNC	71 Outperform	$16.81B	5.03	12.59%	―	8.85%	33.30%
CI	71 Outperform	$85.42B	17.72	12.37%	1.88%	24.65%	48.38%
ELV	71 Outperform	$78.59B	13.57	14.24%	1.95%	6.63%	-3.26%
Sector *	64 Neutral	¥342.56B	10.47	-2.86%	2.57%	11.81%	-7.17%

UnitedHealth Corporate Events

UnitedHealth Sells $3 Billion in Notes

On June 17, 2025, UnitedHealth Group agreed to sell various notes totaling $3 billion, with maturities ranging from 2028 to 2055, as part of an underwriting agreement with several major financial institutions. The issuance of these notes, registered under the Securities Act of 1933, is expected to impact the company’s financial strategy and market positioning by potentially enhancing liquidity and funding future operations.

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 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.