Unitedhealth Beneish M Score

UNH -  USA Stock  

USD 464.73  4.62  1.00%

This module uses fundamental data of Unitedhealth to approximate the value of its Beneish M Score. Unitedhealth M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at Unitedhealth Piotroski F Score and Unitedhealth Altman Z Score analysis.

Unitedhealth Beneish M Score 

 
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Unitedhealth Debt Non Current is most likely to increase significantly in the upcoming years. The last year's value of Debt Non Current was reported at 23.2 Billion. The current Issuance Repayment of Debt Securities is estimated to increase to about 1.3 B, while Long Term Debt to Equity is projected to decrease to 0.54. Unitedhealth PPandE Turnover is most likely to drop in the upcoming years. The last year's value of PPandE Turnover was reported at 29.59. The current Receivables Turnover is estimated to increase to 15.33, while Long Term Debt to Equity is projected to decrease to 0.54.
At this time, it appears that Unitedhealth Group is an unlikely manipulator. The earnings manipulation may begin if Unitedhealth's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Unitedhealth executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Unitedhealth's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.34
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.35
Asset Quality
1.06
Expense Coverage
1.35
Gross Margin Strengs
1.06
Accruals Factor
1.35
Depreciation Resistance
1.0
Net Sales Growth
0.8
Financial Leverage Condition
1.0

Unitedhealth Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Unitedhealth's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues205.3 B257.1 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense27.6 B25.6 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations23.9 B22.2 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and AccretionB1.8 B
Significantly Up
Increasing
Slightly volatile
Total Assets212.9 B197.3 B
Significantly Up
Increasing
Slightly volatile
Investments21.3 B26.8 B
Significantly Down
Increasing
Slightly volatile
Investments Current4.4 B5.4 B
Significantly Down
Increasing
Slightly volatile
Investments Non Current23.2 B21.5 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net5.7 B5.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables15.2 B14.1 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities142.2 B131.8 B
Significantly Up
Increasing
Slightly volatile
Current Assets58 B53.7 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current86.4 B80 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities78.1 B72.4 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current32.4 B30 B
Significantly Up
Increasing
Slightly volatile
Total Debt32 B29.7 B
Significantly Up
Increasing
Slightly volatile
Debt CurrentB6.5 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current25 B23.2 B
Significantly Up
Increasing
Slightly volatile
Operating Income24.2 B22.4 B
Significantly Up
Increasing
Slightly volatile
Gross Margin10.399.8374
Notably Up
Increasing
Stable

Unitedhealth Group Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Unitedhealth's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Unitedhealth in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Unitedhealth's degree of accounting gimmicks and manipulations.

About Unitedhealth Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

29.57 BillionShare
Unitedhealth Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 27.41 Billion

Unitedhealth Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Unitedhealth. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues184.84 B201.16 B226.25 B242.16 B257.14 B205.32 B
Total Assets122.81 B139.06 B152.22 B173.89 B197.29 B212.86 B
Current Assets33.88 B37.08 B38.69 B42.63 B53.72 B57.96 B
Total Liabilities84.54 B91.28 B100.53 B116.27 B131.8 B142.2 B
Current Liabilities49.25 B50.46 B53.21 B61.78 B72.42 B78.14 B
Operating Income12.93 B15.21 B17.34 B19.68 B22.41 B24.17 B
Gross Margin8.118.688.749.259.8410.39

About Unitedhealth Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Unitedhealth Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Unitedhealth using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Unitedhealth Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota. Unitedhealth operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 330000 people.

Unitedhealth Investors Sentiment

The influence of Unitedhealth's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Unitedhealth. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Unitedhealth Implied Volatility

    
  26.8  
Unitedhealth's implied volatility exposes the market's sentiment of Unitedhealth Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Unitedhealth's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Unitedhealth stock will not fluctuate a lot when Unitedhealth's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Unitedhealth in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Unitedhealth's short interest history, or implied volatility extrapolated from Unitedhealth options trading.

Current Sentiment - UNH

Unitedhealth Group Investor Sentiment

Predominant part of Macroaxis users are at this time bullish on Unitedhealth Group. What is your outlook on investing in Unitedhealth Group? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Also, please take a look at Unitedhealth Piotroski F Score and Unitedhealth Altman Z Score analysis. Note that the Unitedhealth Group information on this page should be used as a complementary analysis to other Unitedhealth's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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Is Unitedhealth's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Unitedhealth. If investors know Unitedhealth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Unitedhealth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Unitedhealth Group is measured differently than its book value, which is the value of Unitedhealth that is recorded on the company's balance sheet. Investors also form their own opinion of Unitedhealth's value that differs from its market value or its book value, called intrinsic value, which is Unitedhealth's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Unitedhealth's market value can be influenced by many factors that don't directly affect Unitedhealth's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Unitedhealth's value and its price as these two are different measures arrived at by different means. Investors typically determine Unitedhealth value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unitedhealth's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.