NYSE:ELV
Elevance Health, Inc.
A dominant U.S. managed healthcare provider offering commercial insurance, Medicare Advantage, and Medicaid plans with a focus on cost containment and digital innovation.
Key Metrics
Investment Thesis
Bull Case
ELV remains a high-quality compounder with consistent revenue expansion and strong free cash flow generation that supports meaningful capital returns to shareholders via dividends and buybacks. The shift toward higher-margin Medicare Advantage segments and successful commercial market penetration should sustain long-term earnings power despite macroeconomic pressures.
Bear Case
Persistent medical cost inflation erodes profit margins, while regulatory changes pose a constant threat to the predictable revenue model of healthcare payers. The large goodwill balance of $28.34B introduces impairment risks if underwriting performance deteriorates significantly in key states.
About Elevance Health, Inc.
Elevance Health (ELV) is a leading managed healthcare organization serving millions of members across the United States through its primary businesses of Commercial Insurance, Medicare Advantage, and Medicaid. The company leverages advanced data analytics to deliver tailored health plans that control costs while improving member outcomes in competitive state-based markets.
Analysis
Management Discussion
Despite a slight sequential decline in net profit to $5.66B in 2025 compared to $5.97B in 2024, the company continues to drive revenue growth, which surged to $199.12B from $177.01B the prior year. Strong operating cash flow of $4.29B and a robust balance sheet with $9.49B in cash provide flexibility for share repurchases and strategic investments.
Industry Overview
The U.S. managed care industry is characterized by high barriers to entry due to regulatory licensure requirements and deep distribution networks, yet it faces structural challenges from aging demographics and rising healthcare utilization costs. Consolidation trends continue as smaller plans struggle with capital constraints and talent shortages.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $156.59B | $171.34B | $177.01B | $199.12B |
| Cost of Revenue | $13.04B | $17.29B | $19.75B | $21.18B |
| Gross Profit | $143.56B | $154.05B | $157.26B | $177.95B |
| Operating Expenses | $135.11B | $145.55B | $149.40B | $170.75B |
| Operating Income | $8.45B | $8.50B | $7.86B | $7.20B |
| G&A | $17.69B | $20.09B | $20.02B | $20.98B |
| Stock-Based Comp | $264.0M | $289.0M | $191.0M | $276.0M |
| Depreciation | $123.0M | $107.0M | $105.0M | $94.0M |
| Amortization | $767.0M | $885.0M | $580.0M | $628.0M |
| Other OpEx | $117.42B | $125.46B | $129.37B | $149.76B |
| Non-Operating Income | $-683.0M | $-784.0M | $42.0M | $-489.0M |
| Interest Expense | $851.0M | $1.03B | — | — |
| Pre-Tax Income | $7.77B | $7.71B | $7.90B | $6.71B |
| Income Tax | $1.75B | $1.72B | $1.93B | $1.05B |
| Continuing Ops | $6.02B | $5.99B | $5.97B | $5.66B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $6.02B | $5.99B | $5.97B | $5.66B |
| Minority Interest | $-6.0M | $4.0M | $-9.0M | $-1.0M |
| Net to Common | $6.03B | $5.99B | $5.98B | $5.66B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $55.62B | $60.03B | $58.94B | $63.00B |
| Cash & Equivalents | $7.39B | $6.53B | $8.29B | $9.49B |
| Other Current Assets | $48.23B | $53.50B | $50.65B | $53.51B |
| Long-Term Assets | $47.16B | $48.90B | $57.95B | $58.49B |
| PP&E (Net) | $4.32B | $4.36B | $4.65B | $4.68B |
| Intangibles | $10.31B | $10.27B | $12.09B | $11.20B |
| Goodwill | $24.38B | $25.32B | $28.28B | $28.34B |
| Operating Leases | $604.0M | $584.0M | $567.0M | $452.0M |
| Other LT Assets | $7.54B | $8.37B | $12.36B | $13.82B |
| Total Assets | $102.77B | $108.93B | $116.89B | $121.49B |
| Current Liabilities | $39.70B | $41.79B | $40.58B | $41.03B |
| Current Debt | $1.50B | $1.65B | $1.65B | $1.10B |
| Current Leases | $181.0M | $164.0M | $153.0M | $131.0M |
| Taxes Payable | — | — | $75.0M | $151.0M |
| Other Current Liab | $38.02B | $39.98B | $38.70B | $39.65B |
| Long-Term Liabilities | $26.68B | $27.73B | $34.88B | $36.43B |
| Long-Term Debt | $22.35B | $23.25B | $29.22B | $30.80B |
| LT Operating Leases | $751.0M | $685.0M | $658.0M | $529.0M |
| Other LT Liab | $3.58B | $3.80B | $5.01B | $5.11B |
| Total Liabilities | $66.38B | $69.52B | $75.46B | $77.47B |
| Shareholders' Equity | $36.39B | $39.41B | $41.43B | $44.03B |
| Paid-In Capital | $9.08B | $8.87B | $8.91B | $8.94B |
| Retained Earnings | $29.72B | $31.75B | $33.55B | $35.39B |
| AOCI | $-2.50B | $-1.31B | $-1.15B | $-451.0M |
| Total L&E | $102.77B | $108.93B | $116.89B | $121.49B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $6.02B | $5.99B | $5.97B | $5.66B |
| Non-Cash Adjustments | $-4.30B | $-2.37B | $2.55B | $-5.12B |
| Working Capital Changes | $6.68B | $4.44B | $-2.71B | $3.75B |
| Cash from Operations | $8.40B | $8.06B | $5.81B | $4.29B |
| Capital Expenditures | $1.15B | $1.30B | $1.26B | $1.12B |
| Cash from Investing | $-4.56B | $-5.57B | $-5.17B | $-1.34B |
| Debt Issuances | $3.07B | $2.57B | $7.71B | $2.99B |
| Debt Repayments | $1.90B | $1.91B | $1.65B | $2.15B |
| Share Buybacks | $2.32B | $2.68B | $2.90B | $2.60B |
| Dividends Paid | $1.23B | $1.40B | $1.51B | $1.53B |
| Cash from Financing | $-1.32B | $-3.35B | $1.19B | $-1.74B |
| FX Effect | $-14.0M | $-1.0M | $-6.0M | $-5.0M |
| Net Change in Cash | $2.51B | $-861.0M | $1.83B | $1.20B |
| Beginning Cash | $4.88B | $7.39B | $6.53B | $8.29B |
| Ending Cash | $7.39B | $6.53B | $8.29B | $9.49B |
Frequently Asked Questions
How does Elevance Health, Inc. make money?
Commercial Insurance providing employer-sponsored coverage for individuals and families; Medicare Advantage delivering comprehensive benefits to seniors and dual-eligibles; and Medicaid serving low-income populations through state partnerships.
What are the main risks for ELV?
Regulatory headwinds from ongoing healthcare reform legislation impacting reimbursement rates and benefit designs; high medical inflation driving up claims costs faster than premiums can be adjusted; potential volatility in investment portfolios due to interest rate fluctuations; and intense competition for new members in saturated markets.
What is ELV's competitive advantage?
Extensive proprietary data infrastructure enabling precise risk adjustment and predictive analytics; a broad national footprint with deep relationships across diverse state markets; and a scalable digital platform that enhances member engagement and operational efficiency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.