Elevance Health Inc.
ELVFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
TTM ROIC
9.8%
FY2024 · NOPAT / Invested Capital (Equity + LT Debt); NOPAT = EBIT × (1 - 22% tax rate) · WACC ~8.5% · Moat spread +1.5pp
Financial Snapshot
ticker: ELV step: 04 generated: 2026-05-12 source: quick-research
Elevance Health, Inc. (ELV) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Operating Revenue | $170.2B | $175.2B | $167.1B | -5% (deliberate de-emphasis) |
| Health Benefits Revenue | $148.6B | $150.3B | ~$155B+ | +3% (Q4 +11%) |
| Benefit Expense Ratio (MLR) | 87.0% | 88.5% | ~89.5% | rising |
| Adjusted EPS | $33.10 | $33.04 | $34.95+ | +6% |
| GAAP EPS | $33.14 | $30.40 | $32+ | recovery |
Q1 2026 + FY26 Guide
| Metric | Q1 2026 / FY26 |
|---|---|
| Q1 2026 Profit | $1.8B |
| FY2026 Operating Revenue | Low single-digit % decline |
| FY2026 Medical Loss Ratio | 90.2% ± 50 bps |
| Medicare Advantage Membership Change | -17% (deliberate exit from underperforming plans) |
| Medicaid Operating Margin | ~-1.75% |
| FY2026 Adjusted EPS Guide | Raised in Q1 (specifics not disclosed in search) |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$8B |
| Capital Expenditures | ~$1.4B |
| Free Cash Flow | ~$6.5B |
| Share Repurchases | ~$3.0B |
| Dividends Paid | ~$1.6B |
| Quarterly Dividend | $1.71 |
| Annual Dividend | $6.84 |
| Dividend Yield | ~1.7% |
| Cash & Marketable Securities | ~$10B |
| Total Debt | ~$30B |
Key Ratios (approximate)
- P/E: ~11x (FY26E adjusted EPS ~$36–38) | EV/EBITDA: ~9x | FCF Yield: ~7%
- Revenue Growth (FY25): -5% (deliberate)
- Adjusted EPS Growth: ~+6%
- Medical Loss Ratio: ~89-90% (elevated)
- Dividend Yield: ~1.7% | Buyback Yield: ~3%+
- ROE: ~12% (depressed by MLR pressure)
Growth Profile
FY25 was a transition year for Elevance:
- Operating revenue +3% Q4 but full-year flat-to-down as ELV deliberately reduced underperforming risk-based businesses (especially Medicare Advantage)
- Health Benefits segment Q4 +11% on Medicare Advantage temporary boost + commercial enrollment
- Carelon services growing
- MLR rising on Medicare + Medicaid acuity trends + IRA Part D dynamics
The 2026 setup:
- Deliberate revenue decline as ELV exits underperforming Medicare Advantage plans (-17% MA membership)
- MLR 90.2% target — elevated but stabilizing
- Q1 2026 results raised guidance — early signs of MA + Medicaid pricing/cost balance improving
- Carelon services continued growth
- Strategic focus on profitable HMO + DSNP Medicare + commercial + Carelon
The defining narrative: ELV is following the same playbook as UNH + Aetna — exit unprofitable MA membership, focus on margin recovery, accept temporary revenue decline.
Forward Estimates
FY2026 Guide:
- Operating Revenue: Low single-digit % decline
- MLR: 90.2% ± 50 bps
- Adjusted EPS: Raised in Q1 (specifics not disclosed)
Bull case: Medicare Advantage rate cycle improves in 2027; Medicaid state rate increases catch up to acuity; Carelon scaling drives mix toward services; multiple expands to 14x P/E. Bear case: Medicare Advantage rate cycle worsens; Medicaid margins stay negative; PBM regulation impacts CarelonRx; multiple compresses to 8-9x P/E. Consensus targets ~$450–520 vs. trading ~$405–435 (~10–25% implied upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $ELV.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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