Fundamental Analysis

At UnitedHealthcare, we serve millions of people from their earliest years through their working lives and into retirement. What unites us is our mission to help people live healthier lives and make the health system work better for everyone.

These are extraordinary times in health care. The opportunities to help people live healthier have never been greater. Advanced data and technologies, breakthrough treatments and consumer choice are redefining what can be achieved.

We are working to create a system that is connected, aligned and more affordable for all involved. One that delivers high quality care, responsive to the needs of each person and the communities in which they live. We are also partnering with care providers, collaborating in new ways to improve patient care.

At UnitedHealthcare, we are working to play our part in creating a more sustainable health care system: one that works better for everyone.


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Reasons to buy/invest – UNITEDHEALTH GROUP

High level decisions on buy or sell for a stock should be driven by

1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.

    • Here we see UNITEDHEALTH GROUP makes a margin of 92% on the Operating Level and about 5.3% on Net level This means that out of $1 that it makes $0.53 is being pocketed as profits.

2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.

    • Here we see net revenue growth of 13% in the revenue and the net profit figures grew by 33.5%. Note the Dividends have increases by 20% which is a sign that the company is willing to give back cash to the shareholders.

3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.

    • Here we see UNITEDHEALTH GROUP makes a Return on Assets of 8% and Return of Equity of 23% which is pretty good. Note that since this is a stock from the Financial space, the Assets will be financial assets and will be huge. Hence the Return on Assets of over 1.5% in this case is a great performance.

Except for the Debt to Equity ratio which is generally high for Financial companies all the other parameters look good and this is a company worth investing in.

GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.

All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by UNITEDHEALTH GROUP to the SEC. All the data on the above analysis can be found at the link below


Balance Sheet

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Income Statement


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