UnitedHealth Group's (NYSE:UNH) Returns Have Hit A Wall

Simply Wall St.12-20

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is ...

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Firstly, we'll want to see a proven return on capital employed (ROCE) that is ...</p>\n\n<a href=\"https://finance.yahoo.com/news/unitedhealth-groups-nyse-unh-returns-140018749.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BKVL7J92.USD","symbol_name":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","start_time":0,"source_url":"https://finance.yahoo.com/news/unitedhealth-groups-nyse-unh-returns-140018749.html","article_id":"2492491744","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/IX62bpK3d2MjXY2shB8FWg--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/18de38b7949bd95dc12e4bee40a07640"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492491744","pubTimestamp":1734703218,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"What are the early trends we should look for to identify a stock that could multiply in value over the long term?Firstly, we'll want to see a proven return on capital employed  that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. That's why when we briefly looked at UnitedHealth Group's  ROCE trend, we were pretty happy with what we saw.If you haven't worked with ROCE before, it measures the 'return'  a company generates from capital employed in its business. The formula for this calculation on UnitedHealth Group is:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Therefore, UnitedHealth Group has an ROCE of 16%. On its own, that's a standard return, however it's much better than the 10% generated by the Healthcare industry.Check out our latest analysis for UnitedHealth Group. NYSE:UNH Return on C","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","SG9999017495.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"B\" (SGD) ACC","LU0976567544.SGD":"FTIF - Templeton Global Income A Mdis SGD-H1","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0029864427.USD":"TEMPLETON GLOBAL \"A\" (USD) INC","LU0557290698.USD":"施罗德环球可持续增长基金","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","SG9999001176.SGD":"UOB UNITED GLOBAL HEALTHCARE \"SGD\" (ACC)","LU2089984988.USD":"MANULIFE GF HEALTHCARE \"AA\" (USD) ACC","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","LU0238689110.USD":"贝莱德环球动力股票基金","LU2112291526.USD":"BGF WORLD HEALTHSCIENCE \"A4\" (USD) INC","LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","LU0251132253.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) ACC","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","BK4534":"瑞士信贷持仓","SG9999002224.SGD":"Allianz Global High Payout SGD","IE0009355771.USD":"骏利亨德森环球生命科技A Acc","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU1153585028.USD":"BGF GLOBAL LONG-HORIZON EQUITY  \"A4\" (USD) INC","NYSE":"纽交所","IE00BJT1NW94.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (SGDHDG) ACC","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","UNH":"联合健康","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","LU1854104046.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) ACC","BK4588":"碎股","LU1934455194.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (USD) ACC","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC","LU0882574055.USD":"富达全球健康医疗A ACC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","SG9999014898.SGD":"United Global Quality Growth Fund Dis SGD","LU1267930573.SGD":"TEMPLETON GLOBAL \"AA\" (SGD) ACC A","LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","LU2361045086.USD":"WELLINGTON US QUALITY GROWTH \"A\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H"},"translate_title":"联合健康集团（纽约证券交易所股票代码：UNH）的回报碰壁","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UNH":1,"EBIT":1,"NYSE":1},"content_text":"What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. That's why when we briefly looked at UnitedHealth Group's (NYSE:UNH) ROCE trend, we were pretty happy with what we saw. \n Understanding Return On Capital Employed (ROCE) \n If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on UnitedHealth Group is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.16 = US$32b ÷ (US$299b - US$102b) (Based on the trailing twelve months to September 2024).\n Therefore, UnitedHealth Group has an ROCE of 16%. On its own, that's a standard return, however it's much better than the 10% generated by the Healthcare industry. \n Check out our latest analysis for UnitedHealth Group \n\n\n\n  NYSE:UNH Return on Capital Employed December 20th 2024\n \n\n Above you can see how the current ROCE for UnitedHealth Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering UnitedHealth Group  for free. \n The Trend Of ROCE \n While the current returns on capital are decent, they haven't changed much. The company has employed 78% more capital in the last five years, and the returns on that capital have remained stable at 16%. 16% is a pretty standard return, and it provides some comfort knowing that UnitedHealth Group has consistently earned this amount. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. \n The Bottom Line On UnitedHealth Group's ROCE \n In the end, UnitedHealth Group has proven its ability to adequately reinvest capital at good rates of return. And the stock has followed suit returning a meaningful 78% to shareholders over the last five years. So even though the stock might be more \"expensive\" than it was before, we think the strong fundamentals warrant this stock for further research. \n UnitedHealth Group does have some risks though, and we've spotted   2 warning signs for UnitedHealth Group  that you might be interested in. \n While UnitedHealth Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492491744"}