UnitedHealth (UNH) AI Stock Analysis

• Market Cap: $293.68B
• Dividend Yield: 2.66%
• Average Volume (3M): 8.71M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.08
• Revenue Growth: 10.48%
• EPS Growth: 24.25%
• Country: US
• Employees: 400,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 2.92
• Shares Outstanding: 905,838,600
• 10 Day Avg. Volume: 10,577,588
• 30 Day Avg. Volume: 8,711,301
• PEG Ratio: -0.93
• Price to Book (P/B): 5.07
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 22.70
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 13.17
• 1Y Price Target: $386.68
• Price Target Upside: 20.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 16.32
• Revenue Forecast (FY): $447.48B

• Rating: 76 Outperform
• Price Target: $401.00 ▲(24.70% Upside)

UnitedHealth's overall stock score reflects strong financial performance and strategic initiatives to manage costs and improve margins. While technical indicators suggest some resistance, the company's valuation is fair, and its earnings call provided positive guidance for future growth. Key risks include rising medical costs and membership declines, which the company is addressing through strategic reforms.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and market expansion, supporting long-term financial stability.

Medicare STARS Improvement

Improved Medicare STARS scores enhance competitiveness, potentially leading to better reimbursement rates and member retention.

Cash Flow Generation

Robust cash flow generation supports operational flexibility and investment in growth initiatives, ensuring long-term sustainability.

Negative Factors

Medicare Advantage Membership Decline

Membership decline in Medicare Advantage could reduce revenue and market share, impacting long-term growth prospects.

High Medical Cost Trends

Persistently high medical costs can pressure margins and profitability, challenging cost management strategies.

Commercial and ACA Market Pressures

Significant rate increases in ACA markets may lead to enrollment declines, affecting revenue and market position.

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 generates revenue primarily through its health insurance premiums and fees collected from members in the UnitedHealthcare segment. Key revenue streams include individual and employer-sponsored health plans, Medicare and Medicaid programs, and services provided to government entities. Additionally, the Optum segment contributes significantly to revenue through pharmacy care services, health management solutions, and technology-driven health services. Strategic partnerships with healthcare providers and organizations enhance their service offerings and access to patients, further bolstering their revenue. The company also benefits from economies of scale, which allow it to negotiate better rates with providers and lower costs for members, ultimately driving profitability.

UnitedHealth Financial Statement Overview

Summary

UnitedHealth demonstrates strong financial performance with consistent revenue growth and profitability. The balance sheet is solid, though rising debt levels warrant attention. Cash flow generation remains robust despite recent declines in free cash flow growth. Overall, the company is well-positioned in the healthcare industry, but careful management of leverage and cash flow is essential for sustained success.

Income Statement

UnitedHealth's income statement shows strong revenue growth with a TTM growth rate of 2.92%. The company maintains solid profitability with a gross profit margin of 19.70% and a net profit margin of 4.04%. Although there is a slight decline in gross profit margin compared to previous years, the EBIT and EBITDA margins remain stable, indicating efficient cost management.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.79, indicating moderate leverage. Return on equity is robust at 33.20%, showcasing effective use of shareholder funds. The equity ratio stands at 32.23%, suggesting a balanced capital structure. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -31.26% TTM, which is a concern. However, the operating cash flow to net income ratio of 1.19 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.83 suggests that the company is still generating significant cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	435.16B	400.28B	371.62B	324.16B	287.60B	257.14B
Gross Profit	85.73B	89.40B	90.96B	79.62B	69.65B	67.00B
EBITDA	30.66B	28.08B	36.33B	31.84B	27.07B	25.30B
Net Income	17.59B	14.40B	22.38B	20.12B	17.29B	15.40B
Balance Sheet
Total Assets	315.27B	298.28B	273.72B	245.71B	212.21B	197.29B
Cash, Cash Equivalents and Short-Term Investments	30.61B	29.11B	29.63B	27.91B	23.91B	19.78B
Total Debt	80.14B	76.90B	67.44B	57.62B	46.00B	43.47B
Total Liabilities	209.46B	195.69B	174.80B	159.36B	135.73B	126.75B
Stockholders Equity	95.79B	92.66B	88.76B	77.77B	71.76B	65.49B
Cash Flow
Free Cash Flow	17.37B	20.70B	25.68B	23.40B	19.89B	20.12B
Operating Cash Flow	20.96B	24.20B	29.07B	26.21B	22.34B	22.17B
Investing Cash Flow	-7.19B	-20.53B	-15.57B	-28.48B	-10.37B	-12.53B
Financing Cash Flow	-18.95B	-3.51B	-11.53B	4.23B	-7.46B	-3.59B

UnitedHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 321.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 321.58 is below the 20-day moving average (MA) of 349.19, below the 50-day MA of 345.72, and below the 200-day MA of 376.72, indicating a bearish trend. The MACD of -6.64 indicates Positive momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 9.83 is Positive, 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
UNH	76 Outperform	$293.68B	16.92	18.48%	2.66%	10.48%	24.25%
CVS	74 Outperform	$100.27B	206.40	0.63%	3.43%	6.71%	-90.11%
HUM	69 Neutral	$30.31B	23.62	7.15%	1.21%	9.87%	-5.58%
ELV	63 Neutral	$70.62B	13.00	12.61%	1.93%	11.96%	-11.11%
CNC	61 Neutral	$18.46B	―	-21.93%	―	14.92%	-286.72%
MOH	61 Neutral	$7.82B	8.73	19.71%	―	13.71%	-18.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

UnitedHealth Corporate Events

UnitedHealth Group’s Q3 2025 Results and Outlook

UnitedHealth Group Inc. is a leading health care and well-being company, operating through its two main businesses, UnitedHealthcare and Optum, to provide health benefits and services globally.

UnitedHealth Group’s Earnings Call Highlights Growth and Challenges

UnitedHealth Group’s recent earnings call painted a picture of robust revenue growth and strategic shifts, albeit amidst some notable challenges. The sentiment was largely positive, driven by significant revenue increases and strategic realignments in value-based care. However, the company is grappling with high medical cost trends, a decline in Medicare Advantage membership, and pressures in the commercial and Medicaid segments.

UnitedHealth to Reaffirm 2025 Earnings Forecast

Between September 8 and September 10, 2025, UnitedHealth Group plans to meet with investors and analysts to reaffirm its adjusted 2025 earnings per share expectations, previously disclosed in July 2025. The company will discuss the impact of its recent acquisition of Amedisys, completed in August 2025, which is expected to slightly reduce adjusted earnings per share due to associated financing and integration costs.

The most recent analyst rating on (UNH) stock is a Buy with a $379.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.

UnitedHealth Announces New Board Leadership Changes

UnitedHealth Group has announced significant updates to its Board of Directors, including the establishment of a new Public Responsibility Committee and the appointment of F. William McNabb as the new lead independent director. These changes are part of UnitedHealth’s ongoing commitment to a culture of responsibility, integrity, and performance, with the new committee set to enhance oversight of financial, regulatory, and reputational risks, thereby strengthening governance and risk management.

The most recent analyst rating on (UNH) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.

UnitedHealth Appoints Wayne DeVeydt as New CFO

On July 31, 2025, UnitedHealth Group announced the appointment of Wayne S. DeVeydt as Chief Financial Officer, effective September 2, 2025. DeVeydt, with extensive experience in the health care sector, will succeed John F. Rex, who will transition to a strategic advisory role. This leadership change is part of UnitedHealth’s ongoing strategy to enhance its operational efficiency and growth, reflecting its commitment to maintaining a strong leadership team to navigate the evolving health care landscape.

The most recent analyst rating on (UNH) stock is a Buy with a $399.00 price target. To see the full list of analyst forecasts on UnitedHealth stock, see the UNH Stock Forecast page.