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| Comapny name |
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UnitedHealth Group Inc |
| Share |
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UNH |
Analysis date |
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24-Jul-2007 |
| Stock exchange |
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NYSE |
Rating |
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8/9 |
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
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1) EPS has increased consistently over 5 years? |
No |
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2) Sales has increased Consistently over 5 years? |
Yes |
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3) Cash Flow has increased consistently over 5 years? |
Yes |
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4) What is the historical/projected EPS growth rate?
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| 2 |
Sunstainable Competitive Advantage |
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1) The company has a sustainable competitive advantage? |
Yes |
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UnitedHealth Group Incorporated (UnitedHealth Group) is a diversified health and well-being company, serving approximately 70 million Americans. The Company provides individuals with access to healthcare services and resources through more than 520,000 physicians and other care providers and 4,700 hospitals across the United States. |
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| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
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UnitedHealth Group has a significant “first mover” advantage in consumer health financial services with Exante Financial Services. In commercial services, they are at the very early stages of establishing a financial transaction clearinghouse to serve a new era of transactional advances in health care.
Enterprise-wide, UnitedHealth Group are reforming and cultivating long-standing competencies to serve expanding market needs. |
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| 4 |
Conservative Debt |
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1) The company has Long Term Debt <3x Net Profit? |
Yes |
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2) Long-Term Debt is $
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5,973.00 Million |
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3) Net Profit is $
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4,159.00 Million |
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| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
Yes |
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2) The company has ROA>7% over 5 years? |
Yes |
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| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
Yes |
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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$6,526.00 (Cash Flow) |
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2) Projected Earnings Growth Rate
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15.40% |
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3) Number of shares outstanding
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1402 Million |
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4) Intrinsic Value
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$81.16 |
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5) Share price is below intrinsic value? |
Yes |
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
No |
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2) Stock price at a dip on a uptrend |
No |
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3) Stock price above 20 or 50 day moving average |
No |
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To view UnitedHealth Group, Inc financial statements, please follow the link below.
Click here to view
UPDATE 20 Jul 2007: Sold UNH because of the recent dip in the markets. Placed back on the watchlist. |
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