Elevance Health Inc (ELV, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance and promising growth prospects. With a current share price of $537.92, Elevance Health Inc has experienced a daily increase of 1.52% and a three-month growth of 2.41%. A detailed analysis, supported by the GF Score, indicates that Elevance Health Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Elevance Health Inc boasts a GF Score of 93 out of 100, indicating a high potential for outperformance.
- 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 $124.73 billion and sales of $171.72 billion, stands as a leading health insurer in the U.S. It provides medical benefits to 47 million members and offers a range of coverage plans. Unique in its scale, Elevance Health Inc is the largest provider of Blue Cross Blue Shield branded coverage in 14 states. Strategic acquisitions, such as Amerigroup in 2012 and MMM in 2021, have expanded its reach into government-sponsored programs like Medicaid and Medicare Advantage plans.
Financial Strength Breakdown
Elevance Health Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 9.07, indicating a strong ability to meet interest obligations. The company's strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.16, showcasing a solid financial foundation.
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's Predictability Rank of 4.0 stars further underscores its operational consistency.
Elevance Health Inc's commitment to growth is evident in its Growth Rank of 10/10. The company's revenue and EBITDA have shown impressive growth rates over the past few years, highlighting its expanding operational scale.
Conclusion
Considering Elevance Health Inc's strong financial metrics, profitability, and growth, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies 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.
