US · NYSE · UNH
UnitedHealth (UNH) stock analysis: valuation and financials
Health Care · Medical Specialities
$377.54 -0.5% Price as of Oct 12, 2026
Scale and Optum Rx growth are real, but a 4.24% operating margin, 44% CMS concentration and $41.9B net debt outweigh the 6.97% FCF yield; undemanding only if margin recovers.
- Market cap
- $338.9B
- P/E
- 24.0x
- EV/Sales
- 0.8x
- FCF yield
- 7.0%
- 52-week range
- $259.02 – $436.35
- Next earnings
- Oct 13, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth31
- Profitability57
- Cash flow74
- Balance sheet30
- Capital allocation91
- Valuation85
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Employers, individuals, and government programs pay premiums and fees for health benefits, while payers, providers and employers pay Optum for pharmacy, care and analytics; UnitedHealthcare is the largest profit engine at 49.7% of segment profit, with Optum Rx at 37.9%.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $287.6B | $324.2B | $371.6B | $400.3B | $447.6B |
| Revenue growth | +11.8% | +12.7% | +14.6% | +7.7% | +11.8% |
| Gross margin | 89.2% | 89.6% | 89.6% | 88.3% | 88.7% |
| Operating margin | 8.3% | 8.8% | 8.7% | 8.1% | 4.2% |
| Net income | $17.3B | $20.1B | $22.4B | $14.4B | $12.1B |
| Free cash flow | $19.9B | $23.4B | $25.7B | $20.7B | $16.1B |
| FCF margin | 6.9% | 7.2% | 6.9% | 5.2% | 3.6% |
Amounts in USD · What is free cash flow?
Margins Gross margin is stable: FY2025 88.68% vs 88.33% FY2024 (+35 bps), TTM 88.57%, Q2 FY2026 88.06%. Operating margin collapsed to 4.24% FY2025 from 8.07% FY2024 (-383 bps; TTM 4.82%), hit by Q4 FY2025 charges, recovering to 7.13% in Q2 FY2026. Main reason: medical cost trend outpaced pricing.
- Cash flow HealthyCash conversion 1.49x: TTM operating cash flow $27.0B versus net income $14.1B; FY2025 OCF $19.7B versus net income $12.1B. Earnings, not working capital, drive cash.
- Debt ManageableNet debt $41.9B, net debt/EBITDA 1.61x; total debt $78.4B at FY2025 and $73.3B TTM, against EBITDA $26.0B. Leverage is moderate for an A-rated balance sheet.
Balance sheet Leverage · Moderate
- Cash & short-term investments
- $31.5B
- Total debt
- $73.3B
- Net debt
- $41.9B
- Net debt / EBITDA
- 1.6x
- Interest coverage
- 5.6x
- Current ratio
- 0.8x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateCapital allocation score 91/100: $34.6B buybacks and $33.5B dividends over five years versus $4.8B share-based comp; diluted shares fell from 961M to 911M, a 1.39% three-year CAGR decline.
- Credibility MediumFY2025 guidance was reset hard: $24.65-$25.15 EPS set in April 2025, suspended in May, re-set to at least $14.65 and then $14.90; reported FY2025 GAAP EPS was $13.23, below every guide.
Of 5 guided figures checked: 0 beat, 1 in range, 4 missed.
Valuation range
Implied value per share · Price when researched: $377.54
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.