📊 ELV Key Takeaways
Is Elevance Health, Inc. (ELV) a Good Investment?
Elevance Health demonstrates stable cash generation ($4.1B FCF) and strong revenue growth (12.5% YoY), but concerning operational trends—flat net income despite revenue expansion and declining EPS—indicate margin compression in a highly competitive healthcare insurance market. Financial position is adequate but capital efficiency is weak (ROE 4.0%), making the company defensible but not compelling.
Elevance Health shows solid scale, good revenue growth, and a healthy balance sheet with adequate liquidity and manageable leverage. However, profit expansion is lagging revenue growth, margins remain thin, and free cash flow generation is modest relative to sales, which points to mixed growth quality. The fundamentals support stability, but not a clearly stronger conviction until earnings and cash flow improve more consistently.
Why Buy Elevance Health, Inc. Stock? ELV Key Strengths
- Strong free cash flow generation of $4.1B with 8.2% FCF margin—significantly outpaces net income, indicating resilient operations
- Revenue growth of 12.5% YoY demonstrates market share gains and premium volume expansion in core business
- Low capital intensity ($235M CapEx on $50.2B revenue) enables consistent cash returns despite minimal reinvestment needs
- Adequate liquidity position (1.48x current ratio) and moderate leverage (0.71x D/E) provide financial flexibility
- Revenue growth of 12.5% indicates strong demand and solid topline momentum
- Balance sheet quality is sound, with a 1.54x current ratio and debt/equity of 0.73x
- Interest coverage of 8.5x and ROE of 12.9% suggest reasonable financial resilience and efficient capital use
ELV Stock Risks: Elevance Health, Inc. Investment Risks
- Net income flat YoY despite 12.5% revenue growth signals margin compression and deteriorating operational leverage
- Diluted EPS declining 1.8% YoY indicates shareholder value creation is stalling; profitability trends reversing
- Thin operating (4.2%) and net margins (3.5%) leave minimal room for medical cost inflation or competitive pricing pressure—typical insurance risk
- Poor capital returns (ROE 4.0%, ROA 1.4%) suggest shareholder capital is not efficiently deployed despite asset base of $125.8B
- Interest coverage of 2.5x is tight given $31.1B long-term debt; limited cushion if underwriting deteriorates
- Net income was flat and diluted EPS declined, indicating limited operating leverage
- Operating margin of 3.6% and net margin of 2.8% leave little room for execution missteps or cost pressure
- Free cash flow margin of 1.6% is low for the company’s scale and weakens overall growth quality
Key Metrics to Watch
- Medical loss ratio and operating expense trends—critical to confirm whether margin compression stabilizes or worsens
- Net income and EPS growth direction in coming quarters; must show inflection from current flat trajectory
- Free cash flow conversion and sustainability as revenue growth moderates in mature insurance market
- Return on equity trend and whether capital is increasingly returned to shareholders versus retained earnings growth
- Operating margin and net income growth relative to revenue growth
- Operating cash flow and free cash flow conversion
Elevance Health, Inc. (ELV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Elevance Health, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ELV Profit Margin, ROE & Profitability Analysis
ELV vs Healthcare Sector: How Elevance Health, Inc. Compares
How Elevance Health, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Elevance Health, Inc. Stock Overvalued? ELV Valuation Analysis 2026
Based on fundamental analysis, Elevance Health, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Elevance Health, Inc. Balance Sheet: ELV Debt, Cash & Liquidity
ELV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Elevance Health, Inc.'s revenue has grown significantly by 44% over the 5-year period, indicating strong business expansion. The most recent EPS of $25.22 reflects profitable operations.
ELV Revenue Growth, EPS Growth & YoY Performance
ELV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $48.9B | $1.8B | $8.00 |
| Q3 2025 | $45.1B | $1.0B | $4.36 |
| Q2 2025 | $43.9B | $1.7B | $7.72 |
| Q1 2025 | $42.6B | $2.2B | $9.59 |
| Q3 2024 | $42.8B | $1.0B | $4.36 |
| Q2 2024 | $43.7B | $1.9B | $7.79 |
| Q1 2024 | $42.2B | $2.0B | $8.30 |
| Q3 2023 | $39.9B | $1.3B | $5.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Elevance Health, Inc. Dividends, Buybacks & Capital Allocation
ELV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Elevance Health, Inc. (CIK: 0001156039)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELV
What is the AI rating for ELV?
Elevance Health, Inc. (ELV) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELV's key strengths?
Claude: Strong free cash flow generation of $4.1B with 8.2% FCF margin—significantly outpaces net income, indicating resilient operations. Revenue growth of 12.5% YoY demonstrates market share gains and premium volume expansion in core business. ChatGPT: Revenue growth of 12.5% indicates strong demand and solid topline momentum. Balance sheet quality is sound, with a 1.54x current ratio and debt/equity of 0.73x.
What are the risks of investing in ELV?
Claude: Net income flat YoY despite 12.5% revenue growth signals margin compression and deteriorating operational leverage. Diluted EPS declining 1.8% YoY indicates shareholder value creation is stalling; profitability trends reversing. ChatGPT: Net income was flat and diluted EPS declined, indicating limited operating leverage. Operating margin of 3.6% and net margin of 2.8% leave little room for execution missteps or cost pressure.
What is ELV's revenue and growth?
Elevance Health, Inc. reported revenue of $50.2B.
Does ELV pay dividends?
Elevance Health, Inc. pays dividends, with $376.0M distributed to shareholders in the trailing twelve months.
Where can I find ELV SEC filings?
Official SEC filings for Elevance Health, Inc. (CIK: 0001156039) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELV's EPS?
Elevance Health, Inc. has a diluted EPS of $8.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ELV a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Elevance Health, Inc. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ELV stock overvalued or undervalued?
Valuation metrics for ELV: ROE of 4.0% (sector avg: 15%), net margin of 3.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ELV stock in 2026?
Our dual AI analysis gives Elevance Health, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ELV's free cash flow?
Elevance Health, Inc.'s operating cash flow is $4.3B, with capital expenditures of $235.0M. FCF margin is 8.2%.
How does ELV compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.5% (avg: 12%), ROE 4.0% (avg: 15%), current ratio 1.48 (avg: 2).