UnitedHealth Group Net Income vs. Operating Margin

UNHH34 Stock   47.44  1.78  3.62%   
Considering UnitedHealth Group's profitability and operating efficiency indicators, UnitedHealth Group Incorporated may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess UnitedHealth Group's ability to earn profits and add value for shareholders.
For UnitedHealth Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of UnitedHealth Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well UnitedHealth Group Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between UnitedHealth Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of UnitedHealth Group Incorporated over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between UnitedHealth Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if UnitedHealth Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, UnitedHealth Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

UnitedHealth Group Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining UnitedHealth Group's current stock value. Our valuation model uses many indicators to compare UnitedHealth Group value to that of its competitors to determine the firm's financial worth.
UnitedHealth Group Incorporated is rated first in net income category among its peers. It is rated first in operating margin category among its peers . The ratio of Net Income to Operating Margin for UnitedHealth Group Incorporated is about  229,418,472,064 . Comparative valuation analysis is a catch-all model that can be used if you cannot value UnitedHealth Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for UnitedHealth Group's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

UnitedHealth Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

UnitedHealth Group

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
20.12 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

UnitedHealth Group

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.09 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

UnitedHealth Operating Margin Comparison

UnitedHealth Group is currently under evaluation in operating margin category among its peers.

UnitedHealth Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on UnitedHealth Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of UnitedHealth Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the UnitedHealth Group's important profitability drivers and their relationship over time.

Use UnitedHealth Group in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if UnitedHealth Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UnitedHealth Group will appreciate offsetting losses from the drop in the long position's value.

UnitedHealth Group Pair Trading

UnitedHealth Group Incorporated Pair Trading Analysis

The ability to find closely correlated positions to UnitedHealth Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace UnitedHealth Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back UnitedHealth Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling UnitedHealth Group Incorporated to buy it.
The correlation of UnitedHealth Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as UnitedHealth Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if UnitedHealth Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for UnitedHealth Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your UnitedHealth Group position

In addition to having UnitedHealth Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run FinTech Thematic Idea Now

FinTech
FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize FinTech Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in UnitedHealth Stock

When determining whether UnitedHealth Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of UnitedHealth Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Unitedhealth Group Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Unitedhealth Group Incorporated Stock:
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You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project UnitedHealth Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of UnitedHealth Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include UnitedHealth Group's income statement, its balance sheet, and the statement of cash flows.
Potential UnitedHealth Group investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although UnitedHealth Group investors may work on each financial statement separately, they are all related. The changes in UnitedHealth Group's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on UnitedHealth Group's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.