UnitedHealth Group Incorporated
🇺🇸 UNH · NYSE/NASDAQ · US91324P1021
Insurance
USD 277.26 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.9
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: 277.26 ÷ 13.25 = 20.9
TTM period through: 2025-12-31
Forward P/E (estimated): 15.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 21.0
Yield (Fwd)
3.19%
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): 3.19%
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 39.4x
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: 2025-12-31
Latest quarter (2025-12-31): 39.4x
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)
66.7%
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): 65.7%
Cash Flow Payout (TTM): 40.2%
FCF Coverage (TTM): 2.03x
ROE
12.5%
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
13.1x
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 dominant health insurance provider with an exceptional dividend growth history and highly defensive, essential service characteristics. While recent earnings were temporarily depressed by one-time divestiture charges and a cyberattack, the current valuation offers limited upside for new capital. Existing shareholders should maintain positions given the exceptionally secure 3.19% yield and strong free cash flow coverage, but new investors may want to wait for a more attractive entry point.
Sector Context
UnitedHealth Group is a diversified healthcare and insurance conglomerate that generates revenue through health benefits (UnitedHealthcare) and health services (Optum). In the dividend strategy context, health insurance acts as a highly defensive, essential service with predictable, recurring premium cash flows, though regulatory scrutiny and medical cost trends require ongoing monitoring.
Temporary Opportunity Identified
A $7 billion one-time charge from the sale of its Brazil operations and an $872 million impact from the Change Healthcare cyberattack temporarily depressed Q1 2024 earnings and inflated the TTM P/E.
📊 Strategy Analysis
- • Exceptional dividend profile with a 10-year growth streak (15.7% CAGR) and a very secure 40.19% cash flow payout ratio.
- • Strong underlying business fundamentals masked by temporary, non-recurring events (Brazil divestiture and cyberattack).
- • Solid balance sheet with Net Debt/EBITDA of 2.34x, comfortably below the strategy's 3x threshold.
⚠ What to Watch
- • Current valuation offers a limited margin of safety with a TTM P/E of 20.93, sitting above the strategy's ideal 8-15x range.
- • Five-year EPS CAGR has temporarily turned negative (-6.0%) due to recent one-off charges.
- • Net Debt to EBITDA has increased to 2.34x from historical levels (0.9x in 2019), indicating higher leverage.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.