UNITEDHEALTH GROUP INC (UNH) Stock Analysis
UNITEDHEALTH GROUP INC (UNH) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q4 2025.
Overall Grade: F (Concerning)
UNITEDHEALTH GROUP INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 3.6% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore UNITEDHEALTH GROUP INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: UNITEDHEALTH GROUP INC earns N/A ROIC
UNITEDHEALTH GROUP INC's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-28.
| Metric | UNH | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
Cash Flow: UNITEDHEALTH GROUP INC generates $16.1B FCF at 3.6% margin, positive NaN/8 quarters
UNITEDHEALTH GROUP INC generated $16.1B in free cash flow (TTM), a 3.6% FCF margin, a margin that ranks Bottom 50% in Financials. Operating cash flow exceeds net income by 1.6x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | UNH | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 3.6% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $16.1B | Good | Positive cash generation |
| OCF/Net Income | 1.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for UNITEDHEALTH GROUP INC
Total debt of $78.4B offset by $28.1B in cash. Source: 10-Q filed 2025-10-28.
| Metric | UNH | Rating | Context |
|---|---|---|---|
| Net Cash Position | $-50.3B | Warning | Net debt position |
Valuation: UNITEDHEALTH GROUP INC trades at 24.9x earnings
UNITEDHEALTH GROUP INC trades at a P/E of 24.9x. Free cash flow yield of 5.4% offers attractive cash returns relative to price.
| Metric | UNH | Rating | Context |
|---|---|---|---|
| P/E Ratio | 24.9x | Adequate | Premium valuation |
| EV/Sales | 0.8x | Excellent | Attractive revenue multiple |
| FCF Yield | 5.4% | Good | Attractive cash return |
| Dividend Yield | 2.6% | Adequate | Growth focus over income |
Capital Allocation: UNITEDHEALTH GROUP INC returns 4.5% shareholder yield
UNITEDHEALTH GROUP INC's total shareholder yield is 4.5% (dividends 2.6% + buybacks 1.8%). Source: 10-Q filed 2025-10-28.
| Metric | UNH | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.5% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.8% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $13.5B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 3.6% | Bottom 50% | 0.2x below |
| P/E Ratio | 24.9x | N/A | - |
Financial Scorecard
| Metric | UNH | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 3.6% | Warning | Bottom 50% of sector (median: 21.7%) |
| P/E Ratio (Price-to-Earnings) | 24.9x | Adequate | Fair value |
| Free Cash Flow Yield | 5.4% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is UNITEDHEALTH GROUP INC's Return on Invested Capital (ROIC)?
UNITEDHEALTH GROUP INC (UNH) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is UNITEDHEALTH GROUP INC's Free Cash Flow Margin?
UNITEDHEALTH GROUP INC (UNH) has a free cash flow margin of 3.6%, generating $16.1 billion in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is UNITEDHEALTH GROUP INC stock overvalued or undervalued?
UNITEDHEALTH GROUP INC (UNH) trades at a P/E ratio of 24.9x, which is above the sector median of N/A. The EV/Sales multiple is 0.8x. Free cash flow yield is 5.4%, which is in line with market averages.
Q: Does UNITEDHEALTH GROUP INC pay a dividend?
UNITEDHEALTH GROUP INC (UNH) currently pays a dividend yield of 2.6%. Including share buybacks, the total shareholder yield is 4.5%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is UNITEDHEALTH GROUP INC's revenue and earnings growth?
UNITEDHEALTH GROUP INC (UNH) grew revenue by 11.8% year-over-year. Earnings per share decreased by 14.8% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is UNITEDHEALTH GROUP INC buying back stock?
UNITEDHEALTH GROUP INC (UNH) repurchased $5.5 billion of stock over the trailing twelve months. This represents a buyback yield of 1.8%.
Q: How does UNITEDHEALTH GROUP INC compare to competitors in Financials?
Compared to other companies in Financials, UNITEDHEALTH GROUP INC (UNH) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 3.6% trails the sector median of 21.7% (Bottom 26% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with UNITEDHEALTH GROUP INC?
Investors in UNITEDHEALTH GROUP INC (UNH) should monitor these potential warning signs: 1) FCF margin is thin at 3.6%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.