Elevance Health Inc (ELV, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance and promising market position. With a current share price of $529.54 and a daily gain of 4.38%, coupled with a three-month change of 6.11%, the company shows significant growth potential. A detailed analysis based on the GF Score indicates that Elevance Health Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Elevance Health Inc boasts a GF Score of 93, signaling strong future performance prospects.
- Financial strength rank: 6/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 9/10
Understanding Elevance Health Inc's Business
Elevance Health Inc, with a market cap of $123.07 billion and sales of $171.75 billion, stands as a leading health insurer in the U.S., serving 47 million medical members as of December 2023. The company provides a range of coverage plans, including employer, individual, and government-sponsored programs. Notably, Elevance Health Inc operates as the largest single provider of Blue Cross Blue Shield branded coverage in 14 states and has expanded its reach through significant acquisitions like Amerigroup in 2012 and MMM in 2021.
Financial Strength Breakdown
Elevance Health Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 8.7, indicating a strong ability to meet interest obligations. The company's strategic debt management is evidenced by a favorable Debt-to-Revenue ratio of 0.15, further solidifying its financial health.
Profitability and Growth Metrics
The company's Profitability Rank is high, and its Net Margin has shown a consistent performance over the past five years. Elevance Health Inc also excels in growth, with a 3-Year Revenue Growth Rate of 14.6%, outperforming 60% of its industry peers. The company's EBITDA has also seen significant growth, with a three-year growth rate of 11.2%.
Conclusion
Considering Elevance Health Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
