Elevance Health (ELV) AI Stock Analysis

• Market Cap: $99.57B
• Dividend Yield: 1.5%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.17
• Revenue Growth: 3.19%
• EPS Growth: 1.65%
• Country: US
• Employees: 104,200
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Healthcare Plans
• EPS (TTM): 3.84
• Shares Outstanding: 226,386,930
• 10 Day Avg. Volume: 2,273,970
• 30 Day Avg. Volume: 1,846,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): 34.40
• P/FCF Ratio: 34.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $486.47
• Price Target Upside: 11.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

Elevance Health shows strong financial performance with consistent revenue growth and stable profitability. The technical analysis indicates a positive trend with caution due to potential resistance. Valuation metrics suggest the stock is fairly priced. The recent earnings call highlighted strong growth in key segments but also noted challenges with Medicaid cost trends. Overall, Elevance Health is well-positioned but must manage cash flow and Medicaid challenges effectively.

Positive Factors

Government Managed Care Margins

Analyst is increasing the price target for ELV to $585, seeing it as benefiting from expected recovery in government managed care margins and historically low valuations.

Medicare Advantage Growth

ELV is exhibiting faster Medicare Advantage membership growth in 2025, which is viewed as offsetting slower growth over the prior two years.

Negative Factors

Medicaid Cost Trends

Medicaid challenges are pressuring the cost trend, with core MLR increasing 290bps year-over-year.

Segment Revenue Miss

Health benefits segment revenue of $37.58b missed the estimate by 2.3% with segment earnings missing the estimate by nearly 25%.

Elevance Health Business Overview & Revenue Model

Company Description

Elevance Health Inc. operates as a health benefits company. It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier lives. It serves approximately 118 million people through a portfolio of medical, digital, pharmacy, behavioral, clinical, and care solutions. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health Inc. in June 2022. Elevance Health Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana.

How the Company Makes Money

Elevance Health generates revenue primarily through the sale of health insurance plans and related services. Its key revenue streams include premiums collected from individual and group insurance plans, which are offered to both private and government-sponsored programs such as Medicare and Medicaid. Additionally, the company earns money through its pharmacy benefits management services, which involve negotiating drug prices and managing prescription drug benefits for its members. Partnerships with healthcare providers and other stakeholders also play a crucial role in enhancing its service offerings and expanding its customer base, thereby contributing to its overall earnings.

Elevance Health Financial Statement Overview

Summary

Elevance Health demonstrates strong financial performance with consistent revenue growth and stable profitability. The balance sheet is robust, but declining cash flows warrant attention to maintain financial flexibility. Overall, the company is in a healthy financial state, with room for improvement in cash flow management.

Income Statement

Elevance Health shows strong revenue growth with a significant increase from $104.2 billion in 2019 to $177 billion in 2024, indicating a robust upward trend. The gross profit margin has improved over the years, and the net profit margin is stable, reflecting efficient cost management. However, the EBITDA margin is unavailable for 2024, which could provide more insights into operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a steady increase in stockholders' equity and total assets. The debt-to-equity ratio remains manageable, suggesting prudent leverage levels. However, the decrease in cash and cash equivalents from 2023 to 2024 may need monitoring for future liquidity concerns.

Cash Flow

Elevance Health's cash flow from operations remains positive, although it has decreased in 2024 compared to previous years. The free cash flow shows a declining trend, which may impact future investment capabilities. Despite this, the operating cash flow to net income ratio is reasonable, affirming cash generation efficiency relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
176.81B	171.34B	156.59B	138.64B	121.87B
	Gross Profit
157.06B	47.01B	39.95B	35.99B	33.82B
	EBIT
137.24B	8.74B	8.45B	8.95B	7.71B
	EBITDA
9.09B	10.49B	10.13B	6.00B	8.18B
	Net Income Common Stockholders
5.98B	5.99B	5.89B	6.10B	4.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.49B	36.14B	33.34B	31.15B	29.17B
	Total Assets
116.89B	108.93B	102.75B	97.46B	86.61B
	Total Debt
31.23B	25.12B	24.11B	23.03B	20.04B
	Net Debt
22.94B	18.59B	16.73B	18.15B	14.29B
	Total Liabilities
75.46B	69.52B	66.42B	61.33B	53.42B
	Stockholders Equity
41.31B	39.31B	36.24B	36.06B	33.20B
Cash Flow		Free Cash Flow
4.55B	6.76B	7.25B	7.28B	9.67B
	Operating Cash Flow
5.81B	8.06B	8.40B	8.36B	10.69B
	Investing Cash Flow
-5.17B	-5.57B	-4.56B	-9.64B	-7.32B
	Financing Cash Flow
1.19B	-3.35B	-1.32B	423.00M	-2.57B

Elevance Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 437.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELV, the sentiment is Positive. The current price of 437.77 is above the 20-day moving average (MA) of 433.03, above the 50-day MA of 412.51, and below the 200-day MA of 448.79, indicating a neutral trend. The MACD of 6.84 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELV.

Elevance Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	76 Outperform	$87.75B	19.01	6.07%	3.83%	4.02%	-43.51%
CNC	75 Outperform	$31.68B	10.22	12.65%	―	5.89%	27.09%
ELV	74 Outperform	$99.57B	17.13	14.83%	1.50%	3.19%	1.65%
CI	73 Outperform	$89.52B	27.23	7.87%	1.73%	25.21%	-29.37%
HUM	69 Neutral	$35.61B	29.55	7.40%	1.24%	10.70%	-49.85%
UNH	65 Neutral	$548.34B	38.66	15.88%	1.43%	8.35%	-35.14%
Sector *	50 Neutral	$5.52B	2.98	-43.78%	2.78%	16.94%	3.55%

Elevance Health Corporate Events

Elevance Health Reaffirms 2025 Earnings Guidance to Investors

Elevance Health, Inc. announced that its officers will meet with investors to reaffirm the company’s earnings guidance for 2025, projecting earnings of $30.40 to $31.10 per diluted share, including net unfavorable items, and adjusted earnings of $34.15 to $34.85 per diluted share. The company also maintains its expectations for 2025 year-end total medical enrollment and Medicare Advantage membership, aligning with previous guidance. This announcement underscores Elevance Health’s commitment to transparency with its stakeholders and its strategic focus on maintaining stable enrollment figures and financial performance.