Elevance Health Inc (ELV, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance. With a current share price of $543.51 and a daily gain of 0.93%, coupled with a three-month change of 9.1%, the company shows promising signs of substantial growth. A detailed analysis, highlighted by the GF Score, positions Elevance Health Inc for significant future advancements.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield better returns. Elevance Health Inc boasts a GF Score of 93 out of 100, indicating a strong potential for outperformance based on its financial strength rank of 6/10, profitability rank of 8/10, growth rank of 10/10, GF Value rank of 6/10, and momentum rank of 10/10.
Understanding Elevance Health Inc's Business
Elevance Health Inc, with a market cap of $126.32 billion and sales of $171.75 billion, stands as a leading health insurer in the U.S. The company provides medical benefits to 47 million members and offers a range of coverage plans. Its significant position as the largest provider of Blue Cross Blue Shield branded coverage in 14 states, along with expansions through acquisitions like Amerigroup in 2012 and MMM in 2021, underscores its influential role in the healthcare sector.
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 further evidenced by a Debt-to-Revenue ratio of 0.15, showcasing a prudent approach to leveraging.
Profitability Rank Breakdown
The company's profitability is commendable, with a Net Margin showing a consistent performance over the past five years. This stability is part of what gives Elevance Health Inc a Predictability Rank of 4.0 stars, enhancing investor confidence in its operational consistency.
Growth Rank Breakdown
Elevance Health Inc's commitment to growth is evident from its 14.6% 3-Year Revenue Growth Rate, which surpasses 60% of its peers in the Healthcare Plans industry. The company's EBITDA growth over the past three years further highlights its expanding operational efficiency and profitability.
Conclusion
Considering Elevance Health Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's prime position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
