Elevance Health, Inc. (ELV) Stock Analysis
Elevance Health, Inc. (ELV) Stock Analysis
Analysis from 10-Q filed 2025-10-21. Data as of Q4 2025.
Overall Grade: F (Concerning)
Elevance Health, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 1.6% | Cash flow pressure |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Elevance Health, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Elevance Health, Inc. earns N/A ROIC
Elevance Health, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-21.
| Metric | ELV | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 13.1% | Adequate | Moderate equity returns |
Cash Flow: Elevance Health, Inc. generates $3.2B FCF at 1.6% margin, positive NaN/8 quarters
Elevance Health, Inc. generated $3.2B in free cash flow (TTM), a 1.6% FCF margin, a margin that ranks Bottom 25% in Financials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-21.
| Metric | ELV | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 1.6% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $3.2B | Good | Positive cash generation |
| OCF/Net Income | 0.8x | Adequate | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Elevance Health, Inc. at 0.7x leverage
Elevance Health, Inc.'s debt-to-equity ratio of 0.7x reflects elevated leverage. Net cash position of $3.3B provides financial flexibility. Source: 10-Q filed 2025-10-21.
| Metric | ELV | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Adequate | Moderate leverage |
| Net Cash Position | $3.3B | Excellent | Net cash positive |
Valuation: Elevance Health, Inc. trades at 13.9x earnings
Elevance Health, Inc. trades at a P/E of 13.9x. Free cash flow yield of 4.0% reflects market expectations for growth.
| Metric | ELV | Rating | Context |
|---|---|---|---|
| P/E Ratio | 13.9x | Adequate | Reasonable valuation |
| EV/Sales | 0.4x | Excellent | Attractive revenue multiple |
| FCF Yield | 4.0% | Good | Lower cash yield |
| Dividend Yield | 2.0% | Adequate | Growth focus over income |
Capital Allocation: Elevance Health, Inc. returns 5.3% shareholder yield
Elevance Health, Inc.'s total shareholder yield is 5.3% (dividends 2.0% + buybacks 3.3%). Source: 10-Q filed 2025-10-21.
| Metric | ELV | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.3% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.3% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.1B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 1.6% | Bottom 25% | 0.1x below |
| Return on Equity (ROE) | 13.1% | Top 50% | 1.3x above |
| P/E Ratio | 13.9x | N/A | - |
Financial Scorecard
| Metric | ELV | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 1.6% | Warning | Bottom 25% of sector (median: 21.7%) |
| Debt to Equity Ratio | 73.0% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 13.9x | Adequate | Attractively valued |
| Free Cash Flow Yield | 4.0% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Elevance Health, Inc.'s Return on Invested Capital (ROIC)?
Elevance Health, Inc. (ELV) 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 Elevance Health, Inc.'s Free Cash Flow Margin?
Elevance Health, Inc. (ELV) has a free cash flow margin of 1.6%, generating $3.2 billion in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Elevance Health, Inc. stock overvalued or undervalued?
Elevance Health, Inc. (ELV) trades at a P/E ratio of 13.9x, which is above the sector median of N/A. The EV/Sales multiple is 0.4x. Free cash flow yield is 4.0%, which is in line with market averages.
Q: Does Elevance Health, Inc. pay a dividend?
Elevance Health, Inc. (ELV) currently pays a dividend yield of 2.0%. Including share buybacks, the total shareholder yield is 5.3%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does Elevance Health, Inc. have?
Elevance Health, Inc. (ELV) has a debt-to-equity ratio of 0.7x with total debt of $32.0 billion. Despite carrying debt, the company maintains a net cash position of $3.3 billion.
Q: What is Elevance Health, Inc.'s revenue and earnings growth?
Elevance Health, Inc. (ELV) grew revenue by 12.5% year-over-year. Earnings per share decreased by 1.9% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is Elevance Health, Inc. buying back stock?
Elevance Health, Inc. (ELV) repurchased $2.6 billion of stock over the trailing twelve months. This represents a buyback yield of 3.3%.
Q: How does Elevance Health, Inc. compare to competitors in Financials?
Compared to other companies in Financials, Elevance Health, Inc. (ELV) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 1.6% trails the sector median of 21.7% (Bottom 16% 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 Elevance Health, Inc.?
Investors in Elevance Health, Inc. (ELV) should monitor these potential warning signs: 1) FCF margin is thin at 1.6%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-21. 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.