UnitedHealth Group Incorporated (UNH)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at UnitedHealth as a scaled healthcare franchise: UnitedHealthcare sells insurance and Optum spans care delivery, pharmacy benefits, and software. That integration can create a moat through network, data, and purchasing power. But the numbers tell a more complicated story. In fiscal 2025, the year ended 2025-12-31, revenue was $447.6B, net income $12.1B, and diluted EPS $13.23. That is down from fiscal 2024 net income of $14.4B and EPS of $15.51, and far below fiscal 2023 net income of $22.4B and EPS of $23.86. FairStock's Lynch rule calls it a SLOW GROWER — Shrinking, with profits down about 4.8% a year over five years. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed improvement: revenue $112.0B, net income $5.5B, and diluted EPS $6.04, versus fiscal Q2 2025 net income of $3.4B and EPS of $3.74. Still, the business generated only a 4.90% net margin in that quarter. Financial health is mixed: trailing free cash flow is $23.6B, a 7.0% FCF yield on FairStock's calculation, and debt/equity is 0.69. But ROCE is just 4.87%, Altman Z is 1.80, and the Piotroski F-score is 6/9. At the 2026-10-13 close of $377.76, FairStock's P/E is 24.26 and P/B is 3.47, while its Graham Number is $195.21 — a -93.51% margin of safety. I see a good business, but not a bargain without evidence that margins and earnings have truly stabilized.

In plain English: UnitedHealth Group is a large health-care company that sells insurance and runs health services such as pharmacy benefits, clinics, and software. Its latest reported quarter showed a profit rebound from a year earlier, but the company's annual profits have still been slipping even as sales grew, so the business looks under pressure. At the recent price near $378, the stock looks expensive compared with the company's current earnings and accounting value, even though it produces a lot of cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer