UnitedHealth (UNH) AI Stock Analysis

• Market Cap: $298.72B
• Dividend Yield: 2.66%
• Average Volume (3M): 8.58M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.10
• 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: 7,848,477
• 30 Day Avg. Volume: 8,583,461
• 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: 1.35
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 13.23
• 1Y Price Target: $393.95
• Price Target Upside: 19.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 16.32
• Revenue Forecast (FY): $447.44B

• Rating: 67 Neutral
• Price Target: $335.00 ▲(1.59% Upside)

UnitedHealth's overall stock score reflects strong financial performance and strategic initiatives aimed at long-term growth. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock is fairly valued. Earnings call insights reveal challenges in managing high medical costs and membership declines, which could impact near-term performance. The company's focus on operational improvements and strategic realignments is crucial for future success.

Positive Factors

Revenue Growth

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

Leadership Change

Adding experienced leaders like Dr. Gottlieb can enhance strategic decision-making and regulatory navigation, strengthening long-term governance.

Cash Flow Strength

Robust cash flow generation supports operational flexibility and investment capacity, crucial for sustaining growth and competitive positioning.

Negative Factors

Medicare Advantage Membership Decline

Declining membership in Medicare Advantage could reduce revenue streams and market share, challenging long-term growth and profitability.

High Medical Cost Trends

Persistently high medical costs can pressure margins and profitability, necessitating strategic cost management to maintain financial stability.

Medicaid Funding Issues

Inadequate Medicaid funding could strain financial resources and limit the company's ability to sustain service levels, impacting long-term viability.

UnitedHealth Business Overview & Revenue Model

Company Description

UnitedHealth Group Incorporated is a diversified health care company based in the United States, operating through two main segments: UnitedHealthcare and Optum. UnitedHealthcare provides health care coverage and benefits services, including individual and employer-sponsored health plans, Medicare and Medicaid services, and specialty products. Optum operates as a health services division, offering pharmacy care services, data analytics, and population health management. Together, these segments aim to improve health care quality and accessibility while enhancing the overall health care experience for consumers and providers.

How the Company Makes Money

UnitedHealth Group generates revenue primarily through its health insurance offerings and health services. The UnitedHealthcare segment earns revenue from premiums paid by individuals and employers for health plans, as well as from government programs like Medicare and Medicaid. Optum contributes significantly to the company's revenue through its pharmacy care services, where it manages prescription drug benefits and retail pharmacy operations, and through its health services that focus on data analytics and care management. Key revenue streams include premium revenues, service fees, and the management of pharmacy benefit plans. Additionally, strategic partnerships with employers, healthcare providers, and government agencies enhance its service offerings and revenue potential, while investments in technology and analytics help drive efficiencies and improve care outcomes.

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	30.52B	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: Positive
• Last Price: 329.77
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 329.77 is above the 20-day moving average (MA) of 325.08, below the 50-day MA of 343.54, and below the 200-day MA of 363.34, indicating a neutral trend. The MACD of -5.58 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNH.

UnitedHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	74 Outperform	$102.01B	209.98	0.63%	3.31%	6.71%	-90.11%
ELV	68 Neutral	$75.17B	13.83	12.61%	1.93%	11.96%	-11.11%
UNH	67 Neutral	$298.72B	17.21	18.48%	2.66%	10.48%	24.25%
HUM	63 Neutral	$29.56B	23.03	7.15%	1.21%	9.87%	-5.58%
MOH	61 Neutral	$7.62B	9.19	19.71%	―	13.71%	-18.02%
CNC	58 Neutral	$19.34B	―	-21.93%	―	14.92%	-286.72%
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.