Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating UnitedHealth Group (NYSE:UNH) in relation to its major competitors in the Health Care Providers & Services industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within the industry.
UnitedHealth Group Background UnitedHealth Group is one of the largest private health insurers, providing medical benefits to about 53 million members globally, including 5 million outside the U.S. as of mid-2023. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in managed care. Along with its insurance assets, UnitedHealth's continued investments in its Optum franchises have created a healthcare services colossus that spans everything from medical and pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| UnitedHealth Group Inc | 20.41 | 5.06 | 1.23 | 6.3% | $8.66 | $22.0 | 14.06% |
| Centene Corp | 15.56 | 1.59 | 0.27 | 0.18% | $0.52 | $3.66 | 10.96% |
| Molina Healthcare Inc | 21.86 | 5.69 | 0.70 | 5.34% | $0.36 | $1.04 | 10.03% |
| HealthEquity Inc | 244.15 | 3.58 | 7.37 | 0.75% | $0.07 | $0.16 | 15.33% |
| Progyny Inc | 58.60 | 6.33 | 3.36 | 2.52% | $0.01 | $0.06 | 25.95% |
| Average | 85.04 | 4.3 | 2.92 | 2.2% | $0.24 | $1.23 | 15.57% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By thoroughly analyzing UnitedHealth Group, we can discern the following trends:
- The Price to Earnings ratio of 20.41 is 0.24x lower than the industry average, indicating potential undervaluation for the stock.
- With a Price to Book ratio of 5.06, which is 1.18x the industry average, UnitedHealth Group might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- With a relatively low Price to Sales ratio of 1.23, which is 0.42x the industry average, the stock might be considered undervalued based on sales performance.
- With a Return on Equity (ROE) of 6.3% that is 4.1% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $8.66 Billion is 36.08x above the industry average, highlighting stronger profitability and robust cash flow generation.
- Compared to its industry, the company has higher gross profit of $22.0 Billion, which indicates 17.89x above the industry average, indicating stronger profitability and higher earnings from its core operations.
- The company's revenue growth of 14.06% is significantly lower compared to the industry average of 15.57%. This indicates a potential fall in the company's sales performance.
The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, UnitedHealth Group stands in comparison with its top 4 peers, leading to the following comparisons:
- As UnitedHealth Group is in the middle of the list in terms of the debt-to-equity ratio, it suggests that the company has a moderate debt-to-equity ratio of 0.7 compared to the other companies.
- This position indicates a relatively balanced financial structure, where the company maintains a reasonable level of debt while also leveraging equity for financing its operations.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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