UNH - Embedded Expectations Analysis - 2021 08 10
UnitedHealth Group Incorporated (UNH:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 22.3x Uniform P/E. At these levels, the market has expectations for profitability to remain stable, but management may be concerned about commercial utilization growth, the potential of their virtual solutions, and the development of new offerings.Specifically, management may lack confidence in their ability to maintain commercial utilization growth, sustain Medicare Advantage membership growth, and develop more effective offerings and ways to deliver care. Furthermore, they may have concerns about the potential of their virtual care experience, persistent unfavorable pandemic-related impacts on their business, and the pace of recovery of their public sector markets. Moreover, management may lack confidence in their ability to manage their revenue cycle through the Bassett Healthcare partnership and may have concerns about the potential impact of 2020 care deferrals on revenue, the possible resumption of state-based redetermination activities, and the sustainability of their pipeline's relevance.
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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