In 2025, the sixth-largest company by revenue is priced like it’s being punished. UnitedHealth prints $448 billion in annual sales and $25.3 billion in free cash flow, yet trades at a $216 billion market cap, far below Meta’s valuation at its 2022 bottom, despite generating more than triple the revenue. The numbers aren’t speculative. They’re confirmed.
Meta’s 2022 trough came with $245 billion in market cap and $19.3 billion in free cash flow. UNH now exceeds both, but sentiment hasn’t followed. In Q2 2025, it posted $111.6 billion in revenue and $4.08 in adjusted EPS. Medical care ratio rose to 89.4%, driven by higher service intensity and unit costs. Operating cost ratio dropped to 12.3%. Cash flow from operations hit $7.2 billion. The company returned $4.5 billion to shareholders through dividends and buybacks.
Institutional ownership stands at 90.76%. That doesn’t eliminate risk, but it does shape volatility. Dividend yield is 3.36%, with a payout ratio under 37%. Debt-to-capital ratio is 44.1%. Return on equity through mid-2025 reached 20.6%.
The policy backdrop is shifting. Trump’s renewed push to lower drug costs could reduce Medicare outlays, directly impacting UNH’s cost structure. If weight loss drugs gain Medicare and Medicaid coverage, utilization could shift toward preventive care, lowering long-term claims. Germany’s entire healthcare spend in 2024 was $411 billion, UNH already surpasses that.
Market sentiment remains hostile. UNH’s share price has dropped 53.7% over the past year. But the setup resembles Meta’s 2022 cycle, when valuation collapsed under public pressure. Traders who called Meta’s bottom now see similar signals in UNH. The skepticism is familiar. The metrics are not.
At $448 billion in revenue, a 1% margin shift adds $4.48 billion to free cash flow. That’s not narrative. That’s arithmetic. The company doesn’t need a turnaround. It needs discipline. That’s already underway.
https://www.macrotrends.net/stocks/charts/UNH/unitedhealth-group/free-cash-flow
https://stockanalysis.com/stocks/unh/statistics/
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