Today, we’re diving into UnitedHealth Group (UNH) stock to determine whether it's a buy, hold, or sell. In this analysis, we’ll cover several key aspects:
✔ How UNH makes money
✔ Their financials, dividend analysis, and insights from Seeking Alpha
✔ Valuation and intrinsic value
How UnitedHealth Group Makes Money
To simplify things, we’re calling UnitedHealth Group by its ticker, UNH, throughout this discussion.
UNH generates revenue from two primary business segments:
1️⃣ UnitedHealthcare – Insurance Premiums
UnitedHealthcare is UNH’s core business, providing health insurance to a wide range of demographics. The company makes billions from collecting premiums across various health insurance plans, including Medicare and Medicaid, according to their website.
However, here’s a major red flag—they're under investigation for Medicare fraud. This news broke last week, leading to a huge sell-off in UNH stock. The numbers don’t lie—UNH is down 23% over the past 5 days!
2️⃣ Optum – Healthcare Services & Analytics
The second major revenue stream comes from Optum, which profits through healthcare services such as:
🔹 Revenue cycle management
🔹 Data analytics
🔹 Pharmacy benefits & telehealth solutions
Optum focuses on value-based care, which operates similarly to preventative health—better care upfront leads to lower long-term costs.
UNH also earns revenue through investments, but the bulk of their income comes from health insurance and Optum.
The Stock Price – UNH Is Getting Hammered!
📉 UNH is down 23% in the last 5 days
📉 Year-to-date, the stock has plunged 42%!
📉 Since its peak in Nov 2024, it's dropped a brutal 53%!
With all this downward pressure, now is the perfect time to analyze the financials—because good financials could mean strong dividends despite the stock’s decline.
UNH's Financial Performance
💰 Earnings Report – April 17, 2025
UNH recently reported solid earnings, despite the stock's rough ride:
✅ Revenue up $9.8 billion (≈9% YoY)
✅ Net income increased
✅ Earnings per share between $26 - $26.50
✅ 650,000 new Optum value-based care patients expected
So even with all the negative headlines, UNH continues to grow.
Revenue – Consistent, Upward Growth
UNH’s revenue chart is impressive—one of the best in the industry.
📈 Most years, revenue grows between 8-15% YoY
📈 Steady upward trend over the years
Net Income – Stability Despite Controversy
🟢 Net income has trended up long term
🟢 2024 saw a dip, but bounced back in 2025
🟢 From $6B in 2016 → $22B in 2025!
Free Cash Flow – Strong Growth
💵 Free cash flow has grown steadily over the years:
➡ $6.5B (2014) → $13.6B (2016) → $20.1B (2024)
Overall, UNH’s revenue, profit, and free cash flow all check the box for long-term stability.
Valuation – How Cheap Is UNH Right Now?
Currently, UNH trades at a 13 PE ratio—which is extremely low for a company of this size.
💰 Market Cap: $282 billion
📈 Revenue Growth: 9%
📉 PE Ratio: 13 (very undervalued!)
Considering the high-profile controversy, including:
🚨 Former CEO’s tragic death
🚨 Current CEO stepping down
🚨 Ongoing Medicare fraud investigation
It’s no surprise investors are dumping the stock. But despite all the drama, UNH remains a financially solid company, which sets up a fascinating valuation discussion.
Dividend Analysis – Seeking Alpha Insights
💰 Dividend Yield: 2.7% (Recently surged to 3.3%!)
📊 Payout Ratio: 30% (Very sustainable)
📈 5-Year Dividend Growth Rate: 14%
🗓 Dividend Growth History: 15 Years
📉 Dividend Safety – Strong Stability
✅ Cash Flow Payout Ratio: 25.8% (Low & sustainable)
✅ Room to grow future dividends
✅ Well below concerning levels (85-90%)
📈 Dividend Yield History – A Huge Shift
Traditionally, UNH’s yield hovered around 1-1.5%, but due to the stock decline, the yield shot up past 3%!
📊 Dividend Growth – Impressive Upside
📈 10-Year Growth Rate: 18%
📈 5-Year Growth Rate: 14%
📈 3-Year Growth Rate: 13%
🔹 Massive long-term dividend growth
🔹 High yield + consistent financials = a rare find
For perspective: Stocks with a 5-year dividend growth rate of 12-15% usually have much lower yields (~1%). UNH’s 3% yield + strong growth rate makes it stand out.
Final Verdict – Is UNH a Buy?
🔹 Currently trading at 2020 prices
🔹 One of the highest yields in 5 years
🔹 15% dividend growth rate
🔹 Deep discount with strong financials
The biggest risk? UNH faces serious legal challenges, and if the Medicare fraud investigation intensifies, more downside is possible.
💡 Best strategy? Consider dollar-cost averaging to hedge against further declines.
That said, long-term stability remains solid, and unless the healthcare system undergoes massive reform, UNH should remain a powerhouse in the industry.
🚨 Proceed with caution—just like we saw with 3M’s lawsuit troubles, major lawsuits can crush stock performance.
More Stocks Like UNH
| Company Name |
Symbol |
Description |
| Elevance Health |
ELV |
A leading health benefits company offering medical, pharmacy, and behavioral health services. |
| Cigna Group |
CI |
A global health services organization providing insurance and healthcare solutions. |
| Centene Corporation |
CNC |
A healthcare enterprise focused on government-sponsored programs like Medicaid and Medicare. |
| Humana Inc. |
HUM |
A health insurance company specializing in Medicare Advantage plans and wellness solutions. |
| Molina Healthcare |
MOH |
Provides managed healthcare services to low-income families and individuals under government programs. |
https://youtu.be/vOSJKV1ChqQ?si=sAtjr1qDG52A5Eys
Today, we’re diving into UnitedHealth Group (UNH) stock to determine whether it's a buy, hold, or sell. In this analysis, we’ll cover several key aspects:
✔ How UNH makes money
✔ Their financials, dividend analysis, and insights from Seeking Alpha
✔ Valuation and intrinsic value
How UnitedHealth Group Makes Money
To simplify things, we’re calling UnitedHealth Group by its ticker, UNH, throughout this discussion.
UNH generates revenue from two primary business segments:
1️⃣ UnitedHealthcare – Insurance Premiums
UnitedHealthcare is UNH’s core business, providing health insurance to a wide range of demographics. The company makes billions from collecting premiums across various health insurance plans, including Medicare and Medicaid, according to their website.
However, here’s a major red flag—they're under investigation for Medicare fraud. This news broke last week, leading to a huge sell-off in UNH stock. The numbers don’t lie—UNH is down 23% over the past 5 days!
2️⃣ Optum – Healthcare Services & Analytics
The second major revenue stream comes from Optum, which profits through healthcare services such as:
🔹 Revenue cycle management
🔹 Data analytics
🔹 Pharmacy benefits & telehealth solutions
Optum focuses on value-based care, which operates similarly to preventative health—better care upfront leads to lower long-term costs.
UNH also earns revenue through investments, but the bulk of their income comes from health insurance and Optum.
The Stock Price – UNH Is Getting Hammered!
📉 UNH is down 23% in the last 5 days
📉 Year-to-date, the stock has plunged 42%!
📉 Since its peak in Nov 2024, it's dropped a brutal 53%!
With all this downward pressure, now is the perfect time to analyze the financials—because good financials could mean strong dividends despite the stock’s decline.
UNH's Financial Performance
💰 Earnings Report – April 17, 2025
UNH recently reported solid earnings, despite the stock's rough ride:
✅ Revenue up $9.8 billion (≈9% YoY)
✅ Net income increased
✅ Earnings per share between $26 - $26.50
✅ 650,000 new Optum value-based care patients expected
So even with all the negative headlines, UNH continues to grow.
Revenue – Consistent, Upward Growth
UNH’s revenue chart is impressive—one of the best in the industry.
📈 Most years, revenue grows between 8-15% YoY
📈 Steady upward trend over the years
Net Income – Stability Despite Controversy
🟢 Net income has trended up long term
🟢 2024 saw a dip, but bounced back in 2025
🟢 From $6B in 2016 → $22B in 2025!
Free Cash Flow – Strong Growth
💵 Free cash flow has grown steadily over the years:
➡ $6.5B (2014) → $13.6B (2016) → $20.1B (2024)
Overall, UNH’s revenue, profit, and free cash flow all check the box for long-term stability.
Valuation – How Cheap Is UNH Right Now?
Currently, UNH trades at a 13 PE ratio—which is extremely low for a company of this size.
💰 Market Cap: $282 billion
📈 Revenue Growth: 9%
📉 PE Ratio: 13 (very undervalued!)
Considering the high-profile controversy, including:
🚨 Former CEO’s tragic death
🚨 Current CEO stepping down
🚨 Ongoing Medicare fraud investigation
It’s no surprise investors are dumping the stock. But despite all the drama, UNH remains a financially solid company, which sets up a fascinating valuation discussion.
Dividend Analysis – Seeking Alpha Insights
💰 Dividend Yield: 2.7% (Recently surged to 3.3%!)
📊 Payout Ratio: 30% (Very sustainable)
📈 5-Year Dividend Growth Rate: 14%
🗓 Dividend Growth History: 15 Years
📉 Dividend Safety – Strong Stability
✅ Cash Flow Payout Ratio: 25.8% (Low & sustainable)
✅ Room to grow future dividends
✅ Well below concerning levels (85-90%)
📈 Dividend Yield History – A Huge Shift
Traditionally, UNH’s yield hovered around 1-1.5%, but due to the stock decline, the yield shot up past 3%!
📊 Dividend Growth – Impressive Upside
📈 10-Year Growth Rate: 18%
📈 5-Year Growth Rate: 14%
📈 3-Year Growth Rate: 13%
🔹 Massive long-term dividend growth
🔹 High yield + consistent financials = a rare find
For perspective: Stocks with a 5-year dividend growth rate of 12-15% usually have much lower yields (~1%). UNH’s 3% yield + strong growth rate makes it stand out.
Final Verdict – Is UNH a Buy?
🔹 Currently trading at 2020 prices
🔹 One of the highest yields in 5 years
🔹 15% dividend growth rate
🔹 Deep discount with strong financials
The biggest risk? UNH faces serious legal challenges, and if the Medicare fraud investigation intensifies, more downside is possible.
💡 Best strategy? Consider dollar-cost averaging to hedge against further declines.
That said, long-term stability remains solid, and unless the healthcare system undergoes massive reform, UNH should remain a powerhouse in the industry.
🚨 Proceed with caution—just like we saw with 3M’s lawsuit troubles, major lawsuits can crush stock performance.
More Stocks Like UNH
https://youtu.be/vOSJKV1ChqQ?si=sAtjr1qDG52A5Eys