UNH - Embedded Expectations Analysis - 2019 02 15
UnitedHealth Group Incorporated (UNH:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about brand and Optum positioning, the sustainability of Medicaid performance, margin pressures, and competition with CignaSpecifically, management may be concerned about their brand positioning, and ability to leverage Optum's strong medical provider network in pursuit of high-growth, higher-acuity markets. Furthermore, they may lack confidence in their ability to sustain Medicaid performance, particularly around margins, and diversify and strengthen their offerings. Additionally, they may lack confidence in their ability to sustain revenue growth, EPS performance and earnings mix. Also, they may have concerns about health insurance tax headwinds and the effects of deductible increases. Moreover, they may be concerned about competitive pressure from Cigna, and may be exaggerating the adoption of ambulatory care in the marketplace
UnitedHealth Group is a health care company. The company has four reportable segments across its two business platforms, UnitedHealthcare and Optum: UnitedHealthcare, which provides health care benefits to an array of customers and markets through its UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and UnitedHealthcare Global; OptumHealth, which serves the physical, emotional and health-related financial needs of individuals; OptumInsight, which provides services, technology and health care knowledge to main participants in the health care industry; and OptumRx, which provides pharmacy care services and programs.
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