UnitedHealth Group Incorporated
🇺🇸 UNH · NYSE/NASDAQ · US91324P1021
Insurance
USD 393.85 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
29.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 393.85 ÷ 13.23 = 29.8
TTM period through: 2026-03-31
Forward P/E (estimated): 20.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 30.0
Yield (Fwd)
2.24%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.20%
Div. Growth (5Y CAGR)
12.8%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
2.2x
Latest quarter: 4.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 4.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
66.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 66.5%
Cash Flow Payout (TTM): 34.6%
FCF Coverage (TTM): 2.46x
ROE
12.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
17.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
UnitedHealth Group is a high-quality, dominant healthcare enterprise with exceptional dividend growth, an entrenched market position, and highly secure cash flows. However, trading at an elevated P/E near 30 with a yield of just 2.2%, current valuation offers limited upside and lacks the starting yield required for conservative income portfolios. Existing shareholders should maintain positions given the immaculate fundamentals, but new investors should wait for a significant pullback before considering an entry.
Sector Context
UnitedHealth Group is the largest healthcare insurer and provider of health services in the United States, generating revenue through insurance premiums, care delivery, and pharmacy benefits management. In the healthcare insurance sector, massive scale acts as a formidable competitive moat, though investors must continuously monitor regulatory shifts and medical cost inflation that can temporarily compress margins.
Temporary Opportunity Identified
Earnings have been temporarily depressed by elevated medical utilization rates and one-off costs associated with recent cyberattacks and regulatory settlements.
📊 Strategy Analysis
- • Exceptional dividend growth history with a 12.8% 5-year CAGR, backed by robust free cash flow coverage of 2.46x.
- • Dominant market position in the essential healthcare sector, featuring a highly conservative balance sheet with Net Debt/EBITDA of 2.17x.
- • Consistent top-line performance with revenue growing at a 9.2% 10-year CAGR, demonstrating structural demand and pricing power.
⚠ What to Watch
- • Extremely elevated valuation with a TTM P/E of 29.77, offering limited upside and trading well above the 8-15x target range.
- • Current trailing dividend yield of 2.20% falls significantly short of the 3.0% minimum threshold for new income-focused positions.
- • Trailing 5-year EPS has declined (-6.0% CAGR) amid temporary medical loss ratio pressures and persistent regulatory/litigation headwinds.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.