Unitedhealth Story

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UNH -- USA Stock  

USD 328.87  3.34  1.01%

As many millenniums are trying to avoid healthcare space, it makes sense to concentrate on UnitedHealth Group Incorporated a little further and try to understand its current market patterns. We will evaluate if UnitedHealth Group shares are reasonably priced going into February. Is current the entity value sustainable? We will go over the stock valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Is UnitedHealth Group (NYSE:UNH) valuation justifiable?
UnitedHealth Group has 43.79 B in debt with debt to equity (D/E) ratio of 0.63, which is OK given its current industry classification. Macroaxis provides recommendation on UnitedHealth Group to complement and cross-verify current analyst consensus on UnitedHealth Group Incorporated. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Unitedhealth Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Unitedhealth Group based exclusively on its fundamental and basic technical indicators. By analyzing Unitedhealth's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Unitedhealth's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Unitedhealth. We calculate exposure to Unitedhealth's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Unitedhealth's related companies.

Unitedhealth Group Investment Alerts

Unitedhealth investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Unitedhealth Group performance across your portfolios.Please check all investment alerts for Unitedhealth

Unitedhealth Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Unitedhealth value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Unitedhealth competition to find correlations between indicators driving the intrinsic value of Unitedhealth.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Unitedhealth, but it might be worth checking our own buy vs. sell analysis

Acquisition by Lewis Patricia L of 13390 shares of Unitedhealth subject to Rule 16b-3

Legal trades by Unitedhealth insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Unitedhealth insider trading alert for grant of non-qualified stock option (right to buy) by Lewis Patricia L, EVP and Chief HR Officer, on 24th of February 2021. This event was filed by Unitedhealth Group Inc with SEC on 2021-02-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Unitedhealth Investor Appetite?

The entity reported the last year's revenue of 252.58 B. Total Income to common stockholders was 16.73 B with profit before taxes, overhead, and interest of 57.6 B.
 2018 2019 2020 2021 (projected)
Accounts Payable36.6 B40.7 B36.63 B30.1 B
Receivables18.25 B21.46 B19.32 B20.84 B

Margins Breakdown

UnitedHealth profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or UnitedHealth Group itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of UnitedHealth Group profit margins.
4.71
Profit Margin
9.44
Operating Margin
Operating Margin9.44
EBITDA Margin10.28
Gross Margin10.77
Profit Margin4.71


UnitedHealth Group Net Income Per Employee is decreasing over the last 8 years. The current value of UnitedHealth Group Net Income Per Employee is 48,830. UnitedHealth Group Revenue Per Employee is decreasing over the last 8 years. Furthermore, UnitedHealth Group Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment. UnitedHealth Group Net Income Per Employee is decreasing over the last 8 years. UnitedHealth Group Revenue Per Employee is decreasing over the last 8 years. The current value of UnitedHealth Group Revenue Per Employee is 934,446. Furthermore, UnitedHealth Group Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

UnitedHealth Group is estimated to stay under $358 in February

Current expected short fall is at -1.4. UnitedHealth Group Incorporated has relatively low volatility with skewness of 2.64 and kurtosis of 13.99. However, we advise all investors to independently investigate UnitedHealth Group Incorporated to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Takeaway

While some firms in the healthcare plans industry are either recovering or due for a correction, UnitedHealth Group may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 20th of January 2021, we believe UnitedHealth Group is currently fairly valued. It almost mirrors the market and projects low probability of distress in the next two years. Our actual 30 days buy-or-sell advice on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Unitedhealth Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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