UnitedHealth GroupXTER:UNH +1.39%72 Operating Margin % is 8.05% as of Mar. 2026, which is 1% below its 10-year median of 8.10. GuruFocus rates XTER:UNH with a GF Score™ of 72/100 and a GF Value™ of €528.96 (Significantly Undervalued). The stock has 10 warning signs investors should review. Among 15 Healthcare Plans companies, UnitedHealth Group ranks better than 53.33% on this metric.
UnitedHealth Group (XTER:UNH) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
UnitedHealth Group Operating Margin % Related Terms
UnitedHealth Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for UnitedHealth Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XTER:UNH vs CVS, ELV, CI: Operating Margin % Comparison
For the Healthcare Plans subindustry, UnitedHealth Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
UnitedHealth Group Operating Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, UnitedHealth Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where UnitedHealth Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
UnitedHealth Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
UnitedHealth Group (XTER:UNH) has a Operating Margin % of 8.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on UnitedHealth Group and its competitors. This is near median its historical median of 8.10. Over the past decade, UnitedHealth Group's Operating Margin % has ranged from 4.19 to 8.77. According to the industry distribution chart, UnitedHealth Group ranks #7 out of 15 companies in the Healthcare Plans industry, placing it in the top 46.7%.
Is UnitedHealth Group's Operating Margin % too high?
UnitedHealth Group's current Operating Margin % of 8.05% is near median its 10-year median of 8.10. Over the past 10 years, this metric has ranged from a low of 4.19 to a high of 8.77. The Healthcare Plans industry median Operating Margin % is 3.10. UnitedHealth Group's value of 8.05% is 159.7% above this industry median. Based on the distribution chart, UnitedHealth Group ranks #7 out of 15 companies in the Healthcare Plans industry, which is above the industry midpoint. Overall, UnitedHealth Group has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does UnitedHealth Group's Operating Margin % compare to CVS and ELV?
According to the Healthcare Plans industry distribution chart, UnitedHealth Group ranks #7 out of 15 companies for Operating Margin %. This puts UnitedHealth Group in the upper half of its industry. The industry median Operating Margin % is 3.10. UnitedHealth Group's value of 8.05% is 159.7% above this benchmark. Historically, UnitedHealth Group's own Operating Margin % has ranged from 4.19 to 8.77 over the past decade. While the company's 10-year median is 8.10 vs. the industry median of 3.10, UnitedHealth Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Healthcare Plans company?
The median Operating Margin % among Healthcare Plans companies is 3.10, based on 15 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. UnitedHealth Group's current Operating Margin % of 8.05% is 159.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on UnitedHealth Group and its competitors. For the Healthcare Plans industry, the median Operating Margin % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. UnitedHealth Group's current Operating Margin % is 8.05%, which is near median its own 10-year median of 8.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is UnitedHealth Group stock overvalued right now?
Based on GuruFocus' analysis, UnitedHealth Group (XTER:UNH) is currently considered Significantly Undervalued. The stock's GF Value™ is €528.96, compared to a current price of €363.80 — trading 31.2% below its estimated fair value. The current Operating Margin % is 8.05%, which is near median its 10-year median of 8.10 and 159.7% above the Healthcare Plans industry median of 3.10. UnitedHealth Group's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For UnitedHealth Group (XTER:UNH), the current Operating Margin % is 8.05% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is UnitedHealth Group (XTER:UNH) Overvalued in 2026?
Based on GuruFocus' analysis, UnitedHealth Group stock appears to be undervalued.
The current stock price of €363.80 is trading 31.2% below its estimated GF Value™ of €528.96.
GuruFocus considers UnitedHealth Group to be Significantly Undervalued.
Key valuation signals for XTER:UNH:
Operating Margin %: 8.05% (near median its 10-year median of 8.10)
GF Value™: €528.96 vs. price of €363.80 (31.2% below fair value)
Industry Position: 159.7% above the Healthcare Plans median (#7 of 15)
No single metric tells the full story. See the XTER:UNH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UnitedHealth Group is one of the largest private health insurers and provides medical benefits to about 51 million members globally, including 1 million outside the US as of December 2025. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in medical insurance. Along with its insurance assets, UnitedHealth's Optum franchises help create a healthcare services colossus that spans everything from pharmaceutical benefits to providing outpatient care and analytics to affiliates and third parties.
72GF Score
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