UNITEDHEALTH GROUP INC

UNH
About the company

UnitedHealth Group Incorporated operates as a health care company in the United States and internationally. It operates through four segments: Optum Health, Optum Insight, Optum Rx; and UnitedHealthcare. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services with patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities.

Country: United StatesPrice: $374.94Market Cap: $336.5B

Investment snapshot

33%positive consensus
Scored 37d ago

Positive

5

BUY / PASS

Neutral / negative

1 / 9

NEUTRAL / FAIL

Median fair value

$266.14

-29.0% vs price

Models with upside

2 / 15

Positive margin of safety

Strongest signal

6 of 10 pass — Oshaughnessy, Lynch, Pabrai +1 more object

Key risk

13 of 14 flag UNH's profitability — Oshaughnessy, Lynch, Buffett +10 more

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Munger

Quality Focus

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Graham

Defensive Value

VerdictFAILFAILPASSFAILFAILNEUTRALFAILBUYFAILFAILFAILBUYFAILBUYPASS
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/A-40.9%-103.5%+60.7%N/AN/AN/A-36.1%-64.0%-31.2%+25.1%-42.6%N/A-106.9%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Cash Flow60% pass✓ 8✗ 4▾

    6 of 10 pass — Oshaughnessy, Lynch, Pabrai +1 more object

    (Operating cash flow - capex) / market capitalization+4.78%; #1540/4487 (top 34.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing$16.1B
    ✗LynchPositive and growing
    Free Cash Flow Proxy$12.8B
    ✓BuffettPositive and growing
    P/E or FCF YieldP/E=28.3x, FCF Yield=4.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures$16.1B
    ✓Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency24/24 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive18/18 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap4.7%
    ✓Ackman>= 4%
    Price / FCF per Share21.2x
    ✓Ackman<= 25
    Price / (CFO / Shares)17.3x
    ✗Dreman< 8x
    Operating Cash Flow$19.7B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=6.36%, ROA=3.89%
    ✓PiotroskiCFO/Assets > ROA

Where It Falls Short

  • Profitability7% pass✓ 10✗ 18▾

    13 of 14 flag UNH's profitability — Oshaughnessy, Lynch, Buffett +10 more

    Net income / market capitalization+3.58%; #2015/6251 (top 32.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)P/E 28.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR-3.8%
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE12.0%
    ✗Lynch> 15%
    Net Income Positive (10+ years)26/26 years positive
    ✓BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)19.6%
    ✓Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)4.2% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$12.8B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=28.3x, P/B=3.4x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity16.8% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years10/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR-3.8% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 89.6% -> 88.7%, operating margin 8.7% -> 4.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR-3.8% CAGR over 5 years
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend8.7% (2023) -> 4.2% (2025)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value-42.6% (IV=$263.00 vs Price=$374.94)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency26/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue4.2%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity12.0%
    ✗Ackman>= 15%
    Pre-Tax Income / Revenue3.3%
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity12.0%
    ✓Dreman> 12%
    Net Income / Total Assets3.89%
    ✓PiotroskiROA > 0
    ROA Change YoY4.83% -> 3.89% (delta: -0.94%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=6.36%, ROA=3.89%
    ✓PiotroskiCFO/Assets > ROA
    Positive EPS (10 years)26/26 years positive
    ✓GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Valuation9% pass✓ 2✗ 22▾

    10 of 11 flag UNH's valuation — Oshaughnessy, Lynch, Pabrai +7 more

    Revenue / market capitalization+1.3299; #1354/5203 (top 26.0%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+3.58%; #2015/6251 (top 32.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+4.78%; #1540/4487 (top 34.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date+38.56%; #944/6203 (top 15.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)P/E 28.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=28.3x, FCF Yield=4.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share3.40x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+52.6%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS28.3x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E-0.05
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS28.3x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low150% of trailing low ($249.56)
    ✗Templeton<= 120% of trailing low (certified split-adjusted live window)
    P/B or P/E vs. Historical AverageP/E=28.3x, P/B=3.4x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-42.6% (IV=$263.00 vs Price=$374.94)
    ✗Marks>= 20% below intrinsic value
    Valuation ReasonablenessP/E=28.3x, OE Yield=3.8%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share21.2x
    ✓Ackman<= 25
    Price / (CFO / Shares)17.3x
    ✗Dreman< 8x
    Price / 3-yr avg EPS21.4x
    ✗Graham<= 15x
    Price-to-Book Ratio3.4x
    ✗Graham<= 1.5x
    P/E x P/B72.70
    ✗Graham<= 22.5
  • Valuation models22% pass✓ 2✗ 7▾

    Models split on UNH at $374.94 — fair values range $181.18–$955.15

    Buffett fair value$266.14
    ✗Buffett-40.9% margin vs $374.94
    Pabrai fair value$184.25
    ✗Pabrai-103.5% margin vs $374.94
    Akre fair value$955.15
    ✓Akre+60.7% margin vs $374.94
    Templeton fair value$275.58
    ✗Templeton-36.1% margin vs $374.94
    Marks fair value$228.57
    ✗Marks-64.0% margin vs $374.94
    Munger fair value$285.67
    ✗Munger-31.2% margin vs $374.94
    Ackman fair value$500.88
    ✓Ackman+25.1% margin vs $374.94
    Dreman fair value$263.00
    ✗Dreman-42.6% margin vs $374.94
    Graham fair value$181.18
    ✗Graham-106.9% margin vs $374.94
  • Growth25% pass✓ 4✗ 8▾

    6 of 8 flag UNH's growth — Lynch, Neff, Sleep +3 more

    Basic earnings-growth PEG (dividends excluded)P/E 28.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR-3.8%
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    3-5 Year Diluted EPS CAGR-3.8% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 89.6% -> 88.7%, operating margin 8.7% -> 4.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR11.7%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR-3.8% CAGR over 5 years
    ✗Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency26/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth11.8%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Verdicts36% pass✓ 5✗ 9▾

    Split decision: 9 FAIL · 3 BUY · 2 PASS · 1 NEUTRAL

    Overall verdict
    ✗OshaughnessyFAIL (Rank #189/953 (Top 19.8%))✗LynchFAIL (0/6)✓BuffettPASS (4/7)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)•SchlossNEUTRAL (4/7)✗NeffFAIL (3/6)✓SleepBUY (5/6)✗TempletonFAIL (3/8)✗MarksFAIL (3/5)✗MungerFAIL (1/4)✓AckmanBUY (7/9)✗DremanFAIL (3/10)✓PiotroskiBUY (F-Score 6)✓GrahamPASS (3/7)
  • Debt & Leverage50% pass✓ 6✗ 6▾

    5 of 10 pass — Lynch, Buffett, Akre +2 more object

    Total Debt / Equity0.78
    ✗Lynch< 0.33
    Cash - Long-term Debt$-48.0B
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 0.78, IC: 4.7x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels0.78
    ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
    Total Debt / Shareholders' Equity0.78x
    ✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓Dreman< 0.8
    Current Assets / Current Liabilities0.79x
    ✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Interest Coverage & Debt/EBITDAIC=4.7x, D/EBITDA=3.4x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.78
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change24.26% -> 23.36%
    ✓PiotroskiDecreased YoY
  • Efficiency50% pass✓ 2✗ 3▾

    2 of 4 pass — Akre and Munger object

    ROIC (high and growing)FY2023: ROIC=16.3%; FY2024: ROIC=14.6%; FY2025: ROIC=8.4%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC2.9% (RR=34% x ROIC=8.4%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)4/5 years above 12% (latest 8.4%)
    ✓SleepROIC > 12% in a majority of years
    Return on Invested Capital8.4%
    ✗Munger> 15%
    Revenue / Total Assets Change YoY1.34x -> 1.45x
    ✓PiotroskiImproved YoY

Business & financials

Company Profile

Industry: Insurance
SIC Sector: Insurance Carriers
Size: Mega Cap($336.5B)
Revenue: $447.6B+11.8% YoY
Net Income: $12.1B-16.3% YoY

Financial Snapshot

Operating Margin4.2%
Return on Equity12.0%
Debt / Equity0.78
Current Ratio0.79
EPS (Diluted)$13.23−14.7% 1y
Buybacks (1y)$5.5B
Buybacks (2y)$14.5B
Shares Retired0.8% / 1.5% 2y

Similar Companies

PGRPROGRESSIVE CORP/OH/
$122.2B
CILJFCHINA LIFE INSURANCE CO LTD
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MRSHMARSH & MCLENNAN COMPANIES, INC.
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AONAon plc
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Sector-adjusted criteria: Insurer

Insurers file unclassified balance sheets with no inventory or current accounts, so those criteria are omitted rather than failed for missing data. Return-on-invested-capital tests are omitted too: float funds the balance sheet but never appears in invested capital, and the portfolio it is invested in would be subtracted as spare cash. Debt tests are kept — an insurer’s borrowings are real leverage on top of underwriting.

Shareholder Return

Fiscal 2025

Retired 0.8% of shares last year, 1.5% over two.

Buybacks
$5.5B
Dividends
$7.9B

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
17.1% = 16.4% + 0.6%
FY23
12.7% = 11.2% + 1.3%
FY24
−35.0% = −35.6% + 1.0%
FY25
−14.7% = −16.3% + 1.9%
Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$336.5B$480.6Best.$449.9Best.$437.4Best.$412.4Best.
Revenue$447.6B↑12%$400.3B↑8%$371.6B↑15%$324.2B↑13%$287.6B
Operating Income$19.0B↓41%$32.3B$32.4B↑14%$28.4B↑19%$24.0B
Net Income$12.1B↓16%$14.4B↓36%$22.4B↑11%$20.1B↑16%$17.3B
EPS (Diluted)$13.23↓15%$15.51↓35%$23.86↑13%$21.18↑17%$18.08
Gross Margin88.7%88.3%↓1%89.6%89.6%89.2%
Operating Margin4.2%↓47%8.1%↓7%8.7%↓1%8.8%↑5%8.3%
ROE12.0%↓18%14.7%↓38%23.7%↓4%24.7%↑7%23.0%
Total Debt$78.4B↑2%$76.9B↑23%$62.5B↑9%$57.6B↑25%$46.0B
Shareholders' Equity$100.1B↑2%$98.3B↑4%$94.4B↑16%$81.5B↑9%$75.0B
Current Ratio0.79↓5%0.83↑4%0.79↑2%0.77↓2%0.79
Debt / Equity0.780.78↑18%0.66↓6%0.71↑15%0.61
Operating Cash Flow$19.7B↓19%$24.2B↓17%$29.1B↑11%$26.2B↑17%$22.3B
Free Cash Flow$16.1B↓22%$20.7B↓19%$25.7B↑10%$23.4B↑18%$19.9B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Insurance

UNH vs Peers — Financial Grading

Revenue$447.6BTop 25%
Net Income$12.1BTop 25%
ROE12.0%Bottom 25%
D/E0.78Median
Op. Margin4.2%Median
Curr. Ratio0.79Bottom 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchPiotroskiDreman
PROGRESSIVE CORP/OH/PGR$122.2B$210.52$87.7B$11.3B37.3%0.23——2/72/75/6F-Score 68/10
CHINA LIFE INSURANCE CO LTDCILJF$107.4B$3.80——————3/71/73/6F-Score 55/10
MARSH & MCLENNAN COMPANIES, INC.MRSH$81.3B$170.42$27.0B$4.2B27.2%1.2823.1%1.103/73/73/6F-Score 65/10
Aon plcAON$58.5B$275.90$17.2B$3.7B39.5%1.6325.3%1.112/74/73/6F-Score 63/10
AFLAC INCAFL$57.0B$113.66$17.2B$3.6B12.4%0.29——3/74/72/6F-Score 44/10
HUMANA INCHUM$46.5B$386.87$129.7B$1.2B6.7%0.702.1%2.003/72/70/6F-Score 44/10
SUN LIFE FINANCIAL INCSLF$44.0B$79.06$30.6B$2.6B14.5%0.33——3/73/72/6F-Score 65/10
HARTFORD INSURANCE GROUP, INC.HIG$34.8B$125.85$28.4B$3.8B20.2%0.23——4/73/74/6F-Score 78/10