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Elevance Health, Inc.
S&P 500
$90.5B
Market Cap
13.9
P/E
1.25
PEG
6.0%
ROCE
13.2%
ROE
0.70
D/E
3.3%
OPM
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Currency-adjusted total returns for ELV including FX impact
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📈 Price History
Ratio Health
Excellent
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Shareholding
About

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States.

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⭐ Superinvestors Holding ELV
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Manager Shares Value % of Fund Period
Seth Klarman Baupost Group 1.28M $373.3M 7.30% Mar 2026
Steve Cohen Point72 Asset Management 59.3K $17.4M 0.02% Mar 2026
Jim Simons Renaissance Technologies LLC 15.6K $4.6M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$49.5B
+1.5% YoY
Adjusted Operating Gain
$3.2B
-3.0% YoY
Adjusted Operating Margin
6.5%
-0.2pp YoY
Adjusted Diluted EPS
$12.58
N/A
What Went Right
  • First-quarter adjusted EPS of $12.58 exceeded expectations, driven by strong operating results and ~$1 per share of non-recurring investment income.
  • Favorable claims experience and seasonality in the individual ACA business contributed to operating outperformance, with medical costs modestly better than assumed.
  • Medicare Advantage on track to achieve at least 2% operating margin in 2026, supported by portfolio actions and product repositioning.
What to Watch
  • Recorded a $935 million accrual related to the CMS risk adjustment data notice, representing the current best estimate of potential exposure.
  • Medicaid operating margin guidance remains at approximately -1.75%, with rate adequacy still lagging underlying trend despite constructive state discussions.
  • Underlying medical cost trend remains elevated, particularly in Medicaid, and the company maintains a prudent stance on the balance of the year.
Management Guidance
  • Full-year 2026 adjusted diluted EPS guidance raised to at least $26.75.
  • Second-quarter 2026 adjusted EPS expected to be approximately 23% of the revised full-year guidance.
  • Reaffirmed full-year operating cash flow of at least $5.5 billion, inclusive of potential CMS cash payments.
Investor Lens
The thesis is stronger after this call. Elevance Health delivered a clear beat in Q1, raised full-year adjusted EPS guidance by $1.25 (excluding non-recurring items), and reaffirmed its confidence in returning to at least 12% adjusted EPS growth in 2027 off a $25.75 baseline. Management highlighted improving claims experience, early traction from cost-management initiatives, and a robust commercial pipeline. However, the $935 million CMS accrual and persistent Medicaid margin pressure remain overhangs, and investors will monitor the resolution of the CMS matter closely.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q1 beat with raised guidance and improving claims trends.
Revenue
Operating revenue was $49.5 billion, up 1.5% year over year, driven by higher premium yields in Health Benefits and growth in CarelonRx product revenue, partially offset by expected membership declines in Medicare Advantage, Medicaid, and Employer Group risk.
Profitability
Adjusted diluted EPS was $12.58, exceeding expectations by approximately $0.45 from operational strength and $0.15 from ACA timing dynamics. Non-recurring investment income contributed roughly $1 per share. Full-year adjusted EPS guidance raised to at least $26.75.
Margins
The benefit expense ratio was 86.8%, up 40 bps year over year due to elevated Medicaid trend. The adjusted operating expense ratio improved 20 bps to 10.5%, reflecting disciplined expense management and investments in AI and clinical capabilities.
Balance Sheet
Operating cash flow was $4.3 billion in the quarter, up $3.3 billion year over year. Days in claims payable ended at 46.6 days, up 5.3 days sequentially due to normal seasonality and mix. The company repurchased 3.7 million shares for $1.1 billion in the quarter.
Key Risks
Key risks include the $935 million CMS risk adjustment accrual and ongoing resolution process; Medicaid margin remaining negative with rate growth trailing cost trend; and elevated medical cost trend, particularly in the government business, requiring continued management actions.
Outlook
Full-year 2026 adjusted diluted EPS guidance raised to at least $26.75. The company expects to return to at least 12% adjusted EPS growth in 2027 off a revised 2026 baseline of $25.75.
Generated by AI · Q1 2026 results · Not investment advice
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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