UnitedHealth Post Earnings Analysis
Chart done on daily timeframe. Shares of UNH jumped higher this week after the company reported its quarterly earnings. Their numbers came in above estimates despite the cyber attack challenges that they faced last quarter, which is estimated to cost them up to $1.6B this year. Investors who can overlook the cyber attack and look at the numbers may see opportunity in UnitedHealth as a long term position. The company has grown its revenue steadily over the past seven years, with the last three years at a double digit percentage rate. Net income has also grown alongside revenue, which shows that the company’s leaders are managing it properly. Their balance sheet has as strong asset to liabilities ratio with $278B in assets and $178B in liabilities. Finally, free cash flow is at about $25B, a robust reserve that allows them to keep paying their investors a dividend.
When looking at UNH's price to earnigns ratio, it is only trading at a multiple of 18, which is on the cheaper end of the average 15-25 heatlhy ratio and below the healthcare industry average of 22.