Elevance Health (ELV)
Health Care · $90.4B market cap · SEC CIK 0001156039
ahead of 31% of the S&P 500 · #43 of 59 in Health Care
Next reports on Jan 26, 2027, after the close, with analysts expecting $2.08 in earnings per share.
52-week range $274.84 to $450.69. 5% below its 52-week high and 56% above its low.
The case for ELV
- Has compounded revenue at 10.3% a year over five years.
- Moves less than the market (beta 0.60).
- Pays a modest 1.2% dividend.
- P/E of 17.6× is lower than 87% of Health Care companies.
- Price/sales of 0.4× is lower than 88% of Health Care companies.
The case against
- Long-term debt of $30.8B would take 7 years of operating cash flow to repay.
- Net margin of 2.5% leaves very little room for error.
- Current liabilities exceed current assets (ratio 0.23).
- Revenue growth of +3.6% is slower than 86% of Health Care companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 58 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 47 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 30 |
| Momentumhow the price has behaved lately | 76 |
| Stabilityhow violently it moves, what it owes and what it pays you | 41 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +3.6% |
|---|---|
| Over 5 years | +10.3% a year |
| FY2025 revenue | $199B (+12%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $3.2B |
|---|---|
| Of revenue | 2% |
| Of profit | 56% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | n/a |
|---|---|
| Operating margin | 4% |
| Net margin, FY24 → FY25 → now | 3.4% → 2.8% → 2.5% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $9.5B |
|---|---|
| Long-term debt | $30.8B |
| Net debt | $21.3B |
| Years to repay | 7.2 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 17.6× |
|---|---|
| Fair P/E for its growth | 20× |
| P/FCF | 28.5× |
| Forward P/E | 14.0× |
| EV / EBITDA | 13.5× |
At 17.6× earnings it trades close to the 20× that 7% a year of growth plus a 1.2% dividend would justify. At 28.5× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Elevance Health's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $199B | $177B | $171B | $157B | $139B |
| Change on the year | +12% | +3% | +9% | +13% | — |
| Free cash flow | |||||
| Free cash flow | $3.2B | $4.6B | $6.8B | $7.2B | $7.3B |
| Of revenue | 2% | 3% | 4% | 5% | 5% |
| Profit margins | |||||
| Operating margin | 3.6% | 4.4% | 5.0% | 5.3% | 5.5% |
| Net margin | 2.8% | 3.4% | 3.5% | 3.8% | 4.4% |
| Debt vs. cash | |||||
| Cash | $9.5B | $8.3B | $6.5B | $7.4B | $4.9B |
| Long-term debt | $30.8B | $29.2B | $23.2B | $22.3B | $21.2B |
| Net cash (debt) | −$21.3B | −$20.9B | −$16.7B | −$15.0B | −$16.3B |
What Elevance Health says it does
Elevance Health and its direct and indirect subsidiaries, referred to throughout this document as “we,” “us,” “our,” the “Company” or “Elevance Health,” is a leading health company bringing together the concepts of elevate and advance. We are focused on enhancing well-being and advancing health outcomes by delivering integrated, whole health solutions across the care journey. We support consumers throughout their full health journeys with medical, pharmacy, and behavioral health services designed to address their whole health needs. Through this comprehensive approach, we aim to improve the health of the people and communities we serve. We advance our mission by collaborating with care providers and community organizations, fostering innovation that supports growth and equal opportunity for health access, and cultivating a high-performance culture. -3- With an unyielding commitment to meeting the needs of our diverse customers, we are…
Risk factors ELV lists in its 10-K
- If we fail to responsibly use and protect data, or if such data is found to be inaccurate or unreliable, our business and customers could suffer adverse consequences
- A change in our healthcare product mix may impact our profitability
- We are dependent on the success of our relationships with third parties for various services and functions
- The failure to properly maintain the integrity or availability of our data, or to successfully maintain, protect and upgrade our information systems could adversely affect our business
- We are subject to risks associated with our use of AI, which could adversely affect our business, reputation or financial results
- We are subject to various risks associated with our international operations
- We face risks related to litigation
- There are various risks associated with providing health benefits and other healthcare diversified products and services
- Our pharmacy services business and pharmacy related operations are subject to various risks and uncertainties
- The health benefits industry is subject to negative publicity and sentiment, which could adversely affect our business, cash flows, financial condition and results of operations
- We face competition in many of our markets, and if we fail to adequately adapt to changes in our industry and develop and implement strategic growth opportunities, our ability to compete and grow may be adversely affected
- We face intense competition to attract and retain associates. Further, managing key executive succession and retention is critical to our success
- A downgrade in our credit ratings could have an adverse effect on our business, cash flows, financial condition and results of operations
- The value of our intangible assets may become impaired
- The value of our investments is influenced by varying economic and market conditions, and a decrease in value may result in a loss charged to income
- We also face other risks that could adversely affect our business, financial condition or results of operations, which include