Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on UnitedHealth Group Incorporated (NYSE:UNH) due to its excellent fundamentals in more than one area. UNH is a highly-regarded dividend payer with a strong history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on UnitedHealth Group here.
Solid track record established dividend payer
UNH delivered a satisfying double-digit returns of 23% in the most recent year. Unsurprisingly, UNH surpassed the Healthcare industry return of 13%, which gives us more confidence of the company's capacity to drive earnings going forward. UNH's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the healthcare industry, UNH is also trading below its peers, relative to earnings generated. This bolsters the proposition that UNH's price is currently discounted.
Income investors would also be happy to know that UNH is a great dividend company, with a current yield standing at 1.8%. UNH has also been regularly increasing its dividend payments to shareholders over the past decade.
For UnitedHealth Group, I've put together three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for UNH’s future growth? Take a look at our free research report of analyst consensus for UNH’s outlook.
- Financial Health: Are UNH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UNH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.