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UnitedHealth Group

NYSE:UNH
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UNH
NYSE
$218B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The last earnings update was 50 days ago. More info.


Add to Portfolio Compare Print
  • UnitedHealth Group has significant price volatility in the past 3 months.
UNH Share Price and Events
7 Day Returns
-5.3%
NYSE:UNH
-3.4%
US Healthcare
-2%
US Market
1 Year Returns
-7.8%
NYSE:UNH
-6.5%
US Healthcare
-15.1%
US Market
UNH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
UnitedHealth Group (UNH) -5.3% -18.9% -20.7% -7.8% 38.2% 92.8%
US Healthcare -3.4% -16.5% -19.1% -6.5% 10.9% 11.6%
US Market -2% -19.7% -23.2% -15.1% 3.7% 14.4%
1 Year Return vs Industry and Market
  • UNH underperformed the Healthcare industry which returned -6.5% over the past year.
  • UNH outperformed the Market in United States of America which returned -15.1% over the past year.
Price Volatility
UNH
Industry
5yr Volatility vs Market
Related Companies

Value

 Is UnitedHealth Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of UnitedHealth Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for UnitedHealth Group.

NYSE:UNH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:UNH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.65
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.652 (1 + (1- 21%) (20.51%))
0.837
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.837 * 5.44%)
6.29%

Discounted Cash Flow Calculation for NYSE:UNH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for UnitedHealth Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:UNH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.29%)
2020 16,717.29 Analyst x7 15,727.30
2021 20,065.00 Analyst x7 17,758.89
2022 22,568.80 Analyst x5 18,792.02
2023 25,324.67 Analyst x3 19,837.96
2024 27,519.00 Analyst x3 20,280.30
2025 29,131.33 Est @ 5.86% 20,197.16
2026 30,478.16 Est @ 4.62% 19,879.58
2027 31,623.62 Est @ 3.76% 19,405.21
2028 32,620.65 Est @ 3.15% 18,831.62
2029 33,510.86 Est @ 2.73% 18,199.90
Present value of next 10 years cash flows $188,909.00
NYSE:UNH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $33,510.86 × (1 + 1.74%) ÷ (6.29% – 1.74%)
$748,542.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $748,542.37 ÷ (1 + 6.29%)10
$406,536.73
NYSE:UNH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $188,909.00 + $406,536.73
$595,445.73
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $595,445.73 / 948.57
$627.73
NYSE:UNH Discount to Share Price
Calculation Result
Value per share (USD) From above. $627.73
Current discount Discount to share price of $229.49
= -1 x ($229.49 - $627.73) / $627.73
63.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price UnitedHealth Group is available for.
Intrinsic value
>50%
Share price is $229.49 vs Future cash flow value of $627.73
Current Discount Checks
For UnitedHealth Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • UnitedHealth Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • UnitedHealth Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for UnitedHealth Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are UnitedHealth Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:UNH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $14.55
NYSE:UNH Share Price ** NYSE (2020-04-03) in USD $229.49
United States of America Healthcare Industry PE Ratio Median Figure of 45 Publicly-Listed Healthcare Companies 19.42x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of UnitedHealth Group.

NYSE:UNH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UNH Share Price ÷ EPS (both in USD)

= 229.49 ÷ 14.55

15.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UnitedHealth Group is good value based on earnings compared to the US Healthcare industry average.
  • UnitedHealth Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does UnitedHealth Group's expected growth come at a high price?
Raw Data
NYSE:UNH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
10.6%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 32 Publicly-Listed Healthcare Companies 1.49x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:UNH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.77x ÷ 10.6%

1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UnitedHealth Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on UnitedHealth Group's assets?
Raw Data
NYSE:UNH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $60.78
NYSE:UNH Share Price * NYSE (2020-04-03) in USD $229.49
United States of America Healthcare Industry PB Ratio Median Figure of 94 Publicly-Listed Healthcare Companies 2.26x
United States of America Market PB Ratio Median Figure of 5,144 Publicly-Listed Companies 1.2x
NYSE:UNH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UNH Share Price ÷ Book Value per Share (both in USD)

= 229.49 ÷ 60.78

3.78x

* Primary Listing of UnitedHealth Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • UnitedHealth Group is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess UnitedHealth Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. UnitedHealth Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is UnitedHealth Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is UnitedHealth Group expected to grow at an attractive rate?
  • UnitedHealth Group's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • UnitedHealth Group's earnings growth is positive but not above the United States of America market average.
  • UnitedHealth Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:UNH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:UNH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 10.6%
NYSE:UNH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:UNH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:UNH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 350,163 33,647 24,179 2
2023-12-31 322,058 30,369 21,531 3
2022-12-31 301,572 25,396 19,239 5
2021-12-31 282,368 22,445 16,932 17
2020-12-31 261,548 18,081 14,785 17
2020-04-04
NYSE:UNH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 242,155 18,463 13,839
2019-09-30 239,671 14,654 13,338
2019-06-30 235,876 12,445 12,988
2019-03-31 231,367 10,578 12,617
2018-12-31 226,247 15,713 11,986
2018-09-30 219,891 10,740 12,563
2018-06-30 213,657 17,345 11,860
2018-03-31 207,624 15,509 11,222
2017-12-31 201,159 13,596 10,558
2017-09-30 196,633 14,764 8,625
2017-06-30 192,604 14,421 8,108
2017-03-31 189,036 13,933 7,578

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • UnitedHealth Group's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • UnitedHealth Group's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:UNH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from UnitedHealth Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UNH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 28.03 28.46 27.59 2.00
2023-12-31 23.78 24.49 22.98 3.00
2022-12-31 20.85 21.50 20.19 6.00
2021-12-31 18.02 18.85 16.18 17.00
2020-12-31 15.53 16.40 13.17 17.00
2020-04-04
NYSE:UNH Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 14.55
2019-09-30 13.97
2019-06-30 13.55
2019-03-31 13.13
2018-12-31 12.45
2018-09-30 13.02
2018-06-30 12.28
2018-03-31 11.60
2017-12-31 10.95
2017-09-30 8.99
2017-06-30 8.49
2017-03-31 7.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • UnitedHealth Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess UnitedHealth Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
UnitedHealth Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has UnitedHealth Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare UnitedHealth Group's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • UnitedHealth Group has delivered over 20% year on year earnings growth in the past 5 years.
  • UnitedHealth Group's 1-year earnings growth is less than its 5-year average (15.5% vs 20.8%)
  • UnitedHealth Group's earnings growth has exceeded the US Healthcare industry average in the past year (15.5% vs 14%).
Earnings and Revenue History
UnitedHealth Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from UnitedHealth Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UNH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 242,155.00 13,839.00 35,193.00
2019-09-30 239,671.00 13,338.00 34,595.00
2019-06-30 235,876.00 12,988.00 34,114.00
2019-03-31 231,367.00 12,617.00 34,085.00
2018-12-31 226,247.00 11,986.00 34,074.00
2018-09-30 219,891.00 12,563.00 33,191.00
2018-06-30 213,657.00 11,860.00 32,099.00
2018-03-31 207,624.00 11,222.00 31,041.00
2017-12-31 201,159.00 10,558.00 29,557.00
2017-09-30 196,633.00 8,625.00 29,554.00
2017-06-30 192,604.00 8,108.00 29,200.00
2017-03-31 189,036.00 7,578.00 28,665.00
2016-12-31 184,840.00 7,017.00 28,401.00
2016-09-30 180,904.00 6,551.00 27,146.00
2016-06-30 176,100.00 6,180.00 26,291.00
2016-03-31 165,878.00 6,011.00 25,236.00
2015-12-31 157,107.00 5,813.00 24,312.00
2015-09-30 146,941.00 6,105.00 23,177.00
2015-06-30 138,211.00 6,110.00 22,435.00
2015-03-31 134,522.00 5,933.00 21,903.00
2014-12-31 130,474.00 5,619.00 21,263.00
2014-09-30 128,158.00 5,536.00 20,890.00
2014-06-30 126,023.00 5,504.00 20,323.00
2014-03-31 123,857.00 5,532.00 19,942.00
2013-12-31 122,489.00 5,625.00 18,941.00
2013-09-30 120,141.00 5,442.00 19,161.00
2013-06-30 116,819.00 5,429.00 18,569.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • UnitedHealth Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • UnitedHealth Group used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • UnitedHealth Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess UnitedHealth Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
UnitedHealth Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is UnitedHealth Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up UnitedHealth Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • UnitedHealth Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • UnitedHealth Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of UnitedHealth Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from UnitedHealth Group Company Filings, last reported 3 months ago.

NYSE:UNH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 62,162.00 40,678.00 14,245.00
2019-09-30 59,747.00 44,894.00 15,818.00
2019-06-30 58,056.00 42,273.00 17,269.00
2019-03-31 56,505.00 38,338.00 15,710.00
2018-12-31 56,227.00 36,554.00 14,324.00
2018-09-30 54,365.00 33,553.00 13,849.00
2018-06-30 52,622.00 35,055.00 21,860.00
2018-03-31 51,926.00 35,585.00 22,041.00
2017-12-31 52,022.00 31,692.00 15,490.00
2017-09-30 49,480.00 29,262.00 19,794.00
2017-06-30 46,993.00 31,936.00 17,970.00
2017-03-31 45,662.00 33,920.00 19,352.00
2016-12-31 40,189.00 32,970.00 13,275.00
2016-09-30 39,491.00 33,224.00 15,667.00
2016-06-30 38,031.00 33,198.00 10,974.00
2016-03-31 36,891.00 33,722.00 13,014.00
2015-12-31 35,461.00 31,976.00 12,911.00
2015-09-30 34,693.00 31,783.00 9,925.00
2015-06-30 34,635.00 18,104.00 9,802.00
2015-03-31 33,330.00 18,375.00 10,432.00
2014-12-31 33,842.00 17,461.00 9,236.00
2014-09-30 33,990.00 17,579.00 9,212.00
2014-06-30 34,238.00 16,777.00 8,289.00
2014-03-31 33,817.00 16,862.00 9,383.00
2013-12-31 33,324.00 17,023.00 9,213.00
2013-09-30 33,146.00 16,862.00 10,719.00
2013-06-30 32,150.00 16,717.00 10,097.00
  • UnitedHealth Group's level of debt (65.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (51.6% vs 65.4% today).
  • Debt is well covered by operating cash flow (45.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.6x coverage).
X
Financial health checks
We assess UnitedHealth Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. UnitedHealth Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is UnitedHealth Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.88%
Current annual income from UnitedHealth Group dividends. Estimated to be 2.1% next year.
If you bought $2,000 of UnitedHealth Group shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • UnitedHealth Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.05%).
  • UnitedHealth Group's dividend is below the markets top 25% of dividend payers in United States of America (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:UNH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1938 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:UNH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 4.05 1.00
2022-12-31 5.02 4.00
2021-12-31 5.05 9.00
2020-12-31 4.57 9.00
2020-04-04
NYSE:UNH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-18 4.320 1.703
2019-11-08 4.320 1.517
2019-08-14 4.320 1.845
2019-06-05 4.320 1.731
2019-02-27 3.600 1.496
2018-11-09 3.600 1.378
2018-08-08 3.600 1.360
2018-06-06 3.600 1.423
2018-02-14 3.000 1.297
2017-11-08 3.000 1.339
2017-08-16 3.000 1.504
2017-06-07 3.000 1.597
2017-02-09 2.500 1.477
2016-11-09 2.500 1.578
2016-08-03 2.500 1.795
2016-06-08 2.500 1.779
2016-02-10 2.000 1.570
2015-11-06 2.000 1.747
2015-08-12 2.000 1.694
2015-06-03 2.000 1.655
2015-02-11 1.500 1.289
2014-11-07 1.500 1.472
2014-08-13 1.500 1.720
2014-06-04 1.500 1.831
2014-02-13 1.120 1.441
2013-11-08 1.120 1.540
2013-08-14 1.120 1.564
2013-06-05 1.120 1.649
2013-02-08 0.850 1.451
2012-10-31 0.850 1.566
2012-08-08 0.850 1.546
2012-06-06 0.850 1.524
2012-02-09 0.650 1.160
2011-11-04 0.650 1.319
2011-08-03 0.650 1.401
2011-05-25 0.650 1.291
2011-02-10 0.500 1.102
2010-11-03 0.500 1.321
2010-08-04 0.500 1.461
2010-05-26 0.500 1.653
2010-02-10 0.030 0.095
2010-01-21 0.030 0.091
2009-11-03 0.030 0.099
2009-10-20 0.030 0.115
2009-08-06 0.030 0.111
2009-07-21 0.030 0.110

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of UnitedHealth Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).
X
Income/ dividend checks
We assess UnitedHealth Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can UnitedHealth Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. UnitedHealth Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of UnitedHealth Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Wichmann
COMPENSATION $18,107,356
AGE 56
TENURE AS CEO 2.6 years
CEO Bio

Mr. David Scott Wichmann, also known as Dave, serves as a Director of Surgical Care Affiliates, Inc. Mr. Wichmann has been the Chief Executive Officer and Director of UnitedHealth Group Incorporated since September 1, 2017. Mr. Wichmann served as President of UnitedHealth Group Incorporated since November 2014 until September 1, 2017. Mr. Wichmann has oversight responsibility for all of UnitedHealthcare's domestic and international businesses and for overall UnitedHealth Group performance. He is a member of the Office of the Chief Executive of UnitedHealth. Mr. Wichmann served as the Chief Financial Officer at UnitedHealth Group Incorporated from January 2011 to June 9, 2016. He served as Unit President at UnitedHealth Group Incorporated from July 2004 to April 2008. Mr. Wichmann served as an Executive Vice President of UnitedHealth Group Incorporated since December 2006 until November 2014 and served as its President of Operations since April 22, 2008. He served as Chief Executive Officer of Specialized Care Services (now OptumHealth) of UnitedHealth Group Inc. from June 2003 to July 2004. He served as President of Commercial Markets Group at UnitedHealth from January 1, 2007 to April 2008. He served as the President and Chief Operating Officer at UnitedHealthcare from July 2004 to December 2006. Mr. Wichmann joined UnitedHealth Group in 1998 and served as its Senior Vice President. He served as the President and Chief Operating Officer of Specialized Care Services of UnitedHealth Group from 2001 to June 2003. He served as Senior Vice President of Corporate Development at UnitedHealth since 1998. Previously, he gained extensive experience in mergers and acquisitions, financial management, manufacturing and international administration as a Partner at Arthur Andersen and as the Chief Financial Officer at Advance Machine Company. He serves as Vice Chairman and Director of Amil Participações S.A. He has been a Director of SCAI Holdings, LLC (formerly known as Surgical Care Affiliates, Inc.) since March 24, 2017. He serves as a Director at Fidelity Sedgwick Holdings, Inc. He has been an Independent Director of Tennant Company since August 19, 2009. He serves on the boards of the Minnesota Orchestra, YMCA of Metropolitan Minneapolis and the UnitedHealthcare Children's Foundation. Mr. Wichmann holds B.S. in Accounting from Illinois State University.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the UnitedHealth Group management team in years:

2.6
Average Tenure
56
Average Age
  • The tenure for the UnitedHealth Group management team is about average.
Management Team

Dave Wichmann

TITLE
CEO & Director
COMPENSATION
$18M
AGE
56
TENURE
2.6 yrs

Andrew Witty

TITLE
Group President
COMPENSATION
$22M
AGE
54
TENURE
0.4 yrs

John Rex

TITLE
Executive VP & CFO
COMPENSATION
$9M
AGE
57
TENURE
3.8 yrs

Steve Nelson

TITLE
Executive VP & Office of the Chief Executive
COMPENSATION
$10M
AGE
60
TENURE
2.6 yrs

Tom Roos

TITLE
Senior VP & Chief Accounting Officer
AGE
46
TENURE
4.7 yrs

Phil McKoy

TITLE
Chief Information Officer
AGE
46

Ken Ehlert

TITLE
Chief Scientific Officer & Member of Office of the Chief Executive
TENURE
1.3 yrs

Marianne Short

TITLE
Executive VP & Chief Legal Officer
COMPENSATION
$6M
AGE
67
TENURE
7.3 yrs

Jennifer Whitlow

TITLE
Senior VP & Chief Communications Officer
AGE
46
TENURE
1.3 yrs

James Barry

TITLE
Director of Sales for Western Pennsylvania
AGE
73
Board of Directors Tenure

Average tenure and age of the UnitedHealth Group board of directors in years:

3
Average Tenure
65
Average Age
  • The average tenure for the UnitedHealth Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Hemsley

TITLE
Non-Executive Chairman
COMPENSATION
$11M
AGE
66
TENURE
2.6 yrs

Dave Wichmann

TITLE
CEO & Director
COMPENSATION
$18M
AGE
56
TENURE
2.6 yrs

Bill Ballard

TITLE
Independent Director
COMPENSATION
$325K
AGE
78
TENURE
27.3 yrs

Michele Hooper

TITLE
Independent Director
COMPENSATION
$339K
AGE
67
TENURE
12.5 yrs

Glenn Renwick

TITLE
Independent Director
COMPENSATION
$353K
AGE
64
TENURE
19.3 yrs

Richard Burke

TITLE
Lead Independent Director
COMPENSATION
$406K
AGE
76
TENURE
2.6 yrs

Gail Wilensky

TITLE
Independent Director
COMPENSATION
$339K
AGE
76
TENURE
27.3 yrs

Tim Flynn

TITLE
Independent Director
COMPENSATION
$326K
AGE
62
TENURE
3.3 yrs

Valerie C. Rice

TITLE
Independent Director
COMPENSATION
$318K
AGE
57
TENURE
2.7 yrs

Bill McNabb

TITLE
Independent Director
COMPENSATION
$190K
AGE
62
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • UnitedHealth Group individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. Mar 20 Sell Richard Burke Individual 20. Mar 20 20. Mar 20 -10,000 $228.39 $-2,283,921
20. Mar 20 Sell Richard Burke Individual 18. Mar 20 19. Mar 20 -10,000 $224.40 $-2,182,000
18. Mar 20 Sell Richard Burke Individual 16. Mar 20 17. Mar 20 -15,000 $240.10 $-3,586,037
21. Feb 20 Sell Richard Burke Individual 19. Feb 20 19. Feb 20 -10,000 $306.04 $-3,060,385
21. Jan 20 Sell Richard Burke Individual 16. Jan 20 16. Jan 20 -15,000 $299.45 $-4,491,750
19. Nov 19 Sell D. Wilson Individual 18. Nov 19 18. Nov 19 -7,400 $273.86 $-2,026,549
08. Nov 19 Sell Thomas Roos Individual 07. Nov 19 07. Nov 19 -1,177 $255.04 $-300,177
18. Oct 19 Sell Richard Burke Individual 16. Oct 19 16. Oct 19 -25,000 $236.56 $-5,914,015
23. Sep 19 Sell Richard Burke Individual 19. Sep 19 20. Sep 19 -5,000 $234.20 $-1,169,000
19. Sep 19 Sell Richard Burke Individual 17. Sep 19 18. Sep 19 -5,000 $232.76 $-1,163,397
29. Aug 19 Buy Timothy Flynn Individual 28. Aug 19 28. Aug 19 2,000 $227.55 $455,094
26. Aug 19 Sell Richard Burke Individual 23. Aug 19 23. Aug 19 -2,000 $231.50 $-463,000
12. Aug 19 Sell Richard Burke Individual 08. Aug 19 08. Aug 19 -5,000 $246.40 $-1,232,000
24. Jul 19 Sell William Ballard Individual 23. Jul 19 23. Jul 19 -12,000 $255.31 $-3,063,660
12. Jun 19 Sell Richard Burke Individual 11. Jun 19 11. Jun 19 -10,000 $248.00 $-2,480,000
30. May 19 Sell Richard Burke Individual 29. May 19 29. May 19 -10,000 $241.99 $-2,419,883
06. May 19 Buy David Wichmann Individual 03. May 19 03. May 19 20,000 $231.79 $4,635,730
03. May 19 Buy Frederick McNabb Individual 01. May 19 01. May 19 6,430 $233.21 $1,499,534
26. Apr 19 Sell Richard Burke Individual 24. Apr 19 24. Apr 19 -10,000 $229.75 $-2,297,501
X
Management checks
We assess UnitedHealth Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. UnitedHealth Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Will UnitedHealth Group Incorporated's (NYSE:UNH) Earnings Grow In The Next 12 Months?

Based on UnitedHealth Group Incorporated's (NYSE:UNH) earnings update on 30 June 2019, analysts seem cautiously bearish, as a 10% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 20%. … To understand the overall trajectory of UNH's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NYSE:UNH Past and Future Earnings, August 29th 2019 This results in an annual growth rate of 11% based on the most recent earnings level of US$12b to the final forecast of US$17b by 2022.

Simply Wall St -

Should You Be Impressed By UnitedHealth Group Incorporated's (NYSE:UNH) ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for UnitedHealth Group: 23% = US$13b ÷ US$58b (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does UnitedHealth Group Have A Good Return On Equity? … Combining UnitedHealth Group's Debt And Its 23% Return On Equity Although UnitedHealth Group does use debt, its debt to equity ratio of 0.73 is still low.

Simply Wall St -

UnitedHealth Group Incorporated (NYSE:UNH) Has Got What It Takes To Be An Attractive Dividend Stock

Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … It's good to see UnitedHealth Group has been growing its earnings per share at 19% a year over the past 5 years. … Earnings per share have not been growing, but we respect a company that maintains a relatively stable dividend.

Simply Wall St -

How Many UnitedHealth Group Incorporated (NYSE:UNH) Shares Do Institutions Own?

Check out our latest analysis for UnitedHealth Group NYSE:UNH Ownership Summary, July 13th 2019 What Does The Institutional Ownership Tell Us About UnitedHealth Group? … Insider Ownership Of UnitedHealth Group The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … However, high insider ownership can also give immense power to a small group within the company.

Simply Wall St -

Did UnitedHealth Group Incorporated's (NYSE:UNH) Recent Earnings Growth Beat The Trend?

Examining UnitedHealth Group Incorporated's (NYSE:UNH) past track record of performance is a valuable exercise for investors. … UnitedHealth Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. … You should continue to research UnitedHealth Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for UNH’s future growth?

Simply Wall St -

Does UnitedHealth Group Incorporated's (NYSE:UNH) Stock Price Account For Its Growth?

UnitedHealth Group Incorporated (NYSE:UNH) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $245.7 is based on unrealistic expectations. … UnitedHealth Group is available at price-to-earnings ratio of 18.71x, showing us it is undervalued based on its latest annual earnings update compared to the Healthcare average of 20.87x , and overvalued compared to the US market average ratio of 17.87x. … But, seeing as UnitedHealth Group is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.

Simply Wall St -

Here's What We Like About UnitedHealth Group Incorporated (NYSE:UNH)'s Upcoming Dividend

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … Fortunately for readers, UnitedHealth Group's earnings per share have been growing at 19% a year for the past five years. … We love that UnitedHealth Group is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

Are UnitedHealth Group Incorporated’s (NYSE:UNH) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for UnitedHealth Group: 0.18 = US$18b ÷ (US$161b - US$59b) (Based on the trailing twelve months to March 2019.) Therefore, UnitedHealth Group has an ROCE of 18%. … How UnitedHealth Group's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … With this level of current liabilities, UnitedHealth Group's ROCE is boosted somewhat.

Simply Wall St -

Will UnitedHealth Group Incorporated's (NYSE:UNH) Earnings Grow Over The Next Year?

Based on UnitedHealth Group Incorporated's (NYSE:UNH) earnings update on 31 March 2019, analysts seem cautiously bearish, as a 11% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 20%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:UNH Past and Future Earnings, May 28th 2019 By 2022, UNH's earnings should reach US$17b, from current levels of US$12b, resulting in an annual growth rate of 11%.

Simply Wall St -

Need To Know: UnitedHealth Group Incorporated (NYSE:UNH) Insiders Have Been Selling Shares

So before you buy or sell UnitedHealth Group Incorporated (NYSE:UNH), you may well want to know whether insiders have been buying or selling. … See our latest analysis for UnitedHealth Group UnitedHealth Group Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Lead Independent Director, Richard Burke, sold US$5.3m worth of shares at a price of US$263 per share. … UnitedHealth Group Insiders Bought Stock Recently Over the last three months, we've seen significantly more insider buying, than insider selling, at UnitedHealth Group.

Simply Wall St -

Company Info

Description

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health and well-being services to individuals age 50 and older, addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; Medicaid plans, Children’s Health Insurance Program, and health care programs; medical and dental benefits; and health care delivery. The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement, and financial services. This segment serves individuals through programs offered by employers, payers, government entities, and directly with the care delivery systems. The OptumInsight segment offers software and information products, advisory consulting arrangements, and services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical, as well as develops programs in areas, such as step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.

Details
Name: UnitedHealth Group Incorporated
UNH
Exchange: NYSE
Founded: 1974
$217,688,103,140
948,573,372
Website: http://www.unitedhealthgroup.com
Address: UnitedHealth Group Incorporated
UnitedHealth Group Center,
9900 Bren Road East,
Minnetonka,
Minnesota, 55343,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UNH Common Stock New York Stock Exchange US USD 17. Oct 1984
DB UNH Common Stock Deutsche Boerse AG DE EUR 17. Oct 1984
XTRA UNH Common Stock XETRA Trading Platform DE EUR 17. Oct 1984
LSE 0R0O Common Stock London Stock Exchange GB USD 17. Oct 1984
SWX UNH Common Stock SIX Swiss Exchange CH CHF 17. Oct 1984
WBAG UNH Common Stock Wiener Boerse AG AT EUR 17. Oct 1984
SNSE UNH Common Stock Santiago Stock Exchange CL USD 17. Oct 1984
BMV UNH * Common Stock Bolsa Mexicana de Valores MX MXN 17. Oct 1984
ETLX UNH Common Stock Eurotlx IT EUR 17. Oct 1984
BOVESPA UNHH34 BDR EACH 1 REP 0.2 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 13. May 2019
Number of employees
Current staff
Staff numbers
325,000
UnitedHealth Group employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 03:33
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/14
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.