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1. Company Snapshot

1.a. Company Description

Elevance Health Inc.operates as a health benefits company.It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier lives.


It serves approximately 118 million people through a portfolio of medical, digital, pharmacy, behavioral, clinical, and care solutions.The company was formerly known as Anthem, Inc.and changed its name to Elevance Health Inc.


in June 2022.Elevance Health Inc.was founded in 1944 and is headquartered in Indianapolis, Indiana.

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1.b. Last Insights on ELV

Elevance Health's recent performance was driven by strong Q4 2025 earnings, with adjusted diluted earnings per share (EPS) of $3.33, beating the Zacks Consensus Estimate of $3.1 per share. Operating revenue reached $49.3 billion, a 10% increase from the previous year. The company's strategic repositioning and solid financial performance contributed to its strong results. Additionally, Elevance Health's guidance for 2026 anticipates revenue and EPS declines, but the company's ability to navigate these challenges will be crucial to its future success.

1.c. Company Highlights

2. Elevance Health's Strong Q4 Earnings and Guidance

Elevance Health reported adjusted diluted earnings per share of $3.33 for the fourth quarter, beating estimates of $3.1, and $30.29 for the full year. The company's consolidated benefit expense ratio was 93.5% for the quarter and 90% for the full year, in line with guidance. Revenue growth was not explicitly stated, but the company guided for a low single-digit percent decline in operating revenue in 2026. The company's guidance for adjusted diluted earnings per share is at least $25.50 in 2026.

Publication Date: Feb -02

📋 Highlights
  • 2026 EPS Guidance:: Elevance set a minimum adjusted diluted EPS of $25.50 for 2026, reflecting prudent assumptions with stable commercial performance and margin improvements in Medicare Advantage.
  • Medicaid Margin Compression:: Operating margin expected to reach ~-1.75% in 2026 due to elevated acuity and lagging rates, though improvement is anticipated as rate adjustments take effect.
  • Medicare Advantage Decline:: Membership projected to drop by high teens percentages in 2026, driven by deliberate portfolio actions, with margin improvement targeting at least 2%.
  • Commercial Momentum:: Strong performance in national accounts and ASO (Administrative Services Only) contracts, with CarillonRx contributing low double-digit growth despite membership attrition.
  • Capital Allocation Shift:: Prioritizing share repurchases and operational discipline in 2026, with a mid-single-digit health benefits margin expectation amid portfolio adjustments.

Segment Performance and Outlook

In Medicaid, the company expects operating margin to be approximately negative 1.75% in 2026, with improvement over time as rates incorporate more current experience. In Medicare, the company expects Medicare Advantage membership to decline in the high teens percentage range in 2026, but is positioned to deliver meaningful Medicare margin improvement to at least 2%. The individual ACA market is expected to have at least 900,000 members at year-end 2026, with membership up approximately 10% coming out of open enrollment.

Valuation and Growth Prospects

With a P/E Ratio of 13.54, the market appears to be pricing in moderate growth expectations. The company's ROE of 13.01% and ROIC of 472.22% indicate strong profitability. Analysts estimate revenue growth at 3.3% next year. The company's guidance and segment performance suggest that it is well-positioned for sustainable earnings growth over the long term, driven by its diversified platform and Whole Health approach.

Capital Allocation and M&A

The company is taking a more conservative posture in the near term, prioritizing balance sheet strength and funding targeted investments. The capital allocation framework remains unchanged, with a focus on reinvestment back into the business, disciplined M&A, and consistent capital return to shareholders. The company expects a lower level of M&A activity and a greater relative emphasis on opportunistic share repurchases in 2026.

3. NewsRoom

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Blume Capital Management Inc. Buys 4,320 Shares of Elevance Health, Inc. $ELV

Feb -09

Source: defenseworld.net

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Manning & Napier Group, LLC Reduces Stake in UnitedHealth Group Inc by 65.05%

Feb -04

Source: gurufocus.com

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Is the Options Market Predicting a Spike in Elevance Health Stock?

Feb -02

Source: zacks.com

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Top 15 High-Growth Dividend Stocks For February 2026

Feb -02

Source: seekingalpha.com

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Weekend Morning Brew: Fed Hold, Big Tech, Metals Whipsaw

Feb -01

Source: gurufocus.com

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First Look: Fed pick, Apple iPhone boom, Tesla pivot, metals swing

Jan -30

Source: gurufocus.com

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Elevance Health Q4 Earnings Call Highlights

Jan -30

Source: defenseworld.net

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Market Today: Apple beats, Microsoft slumps, Tesla pivots to robots

Jan -29

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.40%)

6. Segments

Health Benefits

Expected Growth: 7.5%

Elevance Health's Health Benefits segment is driven by increasing demand for medical, pharmacy, and specialty benefits among individuals and employers, as well as the company's expansion into new markets and growing adoption of value-based care models.

Corporate & Other

Expected Growth: 2.5%

Elevance Health's Corporate & Other segment growth is driven by increasing unallocated corporate expenses and expanding other business activities, which will contribute to the company's overall growth.

Carelon - Carelon Rx

Expected Growth: 10.5%

Elevance Health's pharmacy benefit management segment is driven by increasing adoption of personalized healthcare, growth in specialty pharmacy, and expansion of Medicare Advantage plans, leading to a strong growth hypothesis.

Carelon - Carelon Services

Expected Growth: 10.5%

Carelon Services, Elevance Health’s care management and coordination segment, is driven by increasing demand for value-based care, growing prevalence of chronic diseases, and the need for improved patient outcomes, leading to a strong growth hypothesis.

Unallocated Net Investment Income

Expected Growth: 7.3%

Elevance Health Inc.'s unallocated net investment income growth is driven by increasing investment yields, expansion into new markets, and effective asset liability management, leading to a forecast CAGR of 7.3%.

Unallocated Net Losses on Financial Instruments

Expected Growth: 14.5%

Elevance Health's growth is driven by its diversified business portfolio, including government-sponsored programs, commercial and specialty businesses, and care delivery capabilities, which position it for long-term growth and profitability.

Eliminations

Expected Growth: 7.4%

Elevance Health Inc. is poised for growth driven by its expanding Medicaid business, increased government funding, and a growing need for healthcare services, particularly among underserved populations.

7. Detailed Products

Anthem Medicare Advantage

Medicare Advantage plans that offer additional benefits and lower out-of-pocket costs

Anthem Medicaid

Government-sponsored health insurance for low-income individuals and families

Anthem Individual and Family Plans

Health insurance plans for individuals and families who don't have employer-sponsored coverage

Anthem Group Insurance

Employer-sponsored health insurance plans for businesses of all sizes

Elevance Health Pharmacy Benefits

Pharmacy benefits management services that help reduce prescription drug costs

Elevance Health Care Management

Care management services that help improve health outcomes and reduce costs

Elevance Health Data and Analytics

Data and analytics services that help improve health outcomes and reduce costs

8. Elevance Health Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Elevance Health Inc. is medium due to the presence of alternative healthcare services and products. However, the company's diversified portfolio and strong brand recognition mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Elevance Health Inc. due to the company's strong market position and the lack of buyer concentration in the healthcare industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Elevance Health Inc. due to the presence of multiple suppliers and the company's ability to negotiate prices. However, the company's dependence on certain suppliers for critical components may limit its bargaining power.

Threat Of New Entrants

The threat of new entrants is low for Elevance Health Inc. due to the high barriers to entry in the healthcare industry, including regulatory hurdles and the need for significant capital investments.

Intensity Of Rivalry

The intensity of rivalry is high for Elevance Health Inc. due to the presence of several established players in the healthcare industry, leading to intense competition for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.99%
Debt Cost 5.28%
Equity Weight 61.01%
Equity Cost 7.90%
WACC 6.88%
Leverage 63.91%

11. Quality Control: Elevance Health Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
McKesson

A-Score: 6.1/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
CVS Health

A-Score: 5.6/10

Value: 5.0

Growth: 3.9

Quality: 2.6

Yield: 6.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Elevance Health

A-Score: 5.0/10

Value: 6.4

Growth: 5.7

Quality: 6.8

Yield: 3.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
UnitedHealth

A-Score: 4.3/10

Value: 5.3

Growth: 6.1

Quality: 5.2

Yield: 4.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Humana

A-Score: 3.9/10

Value: 5.3

Growth: 5.2

Quality: 4.1

Yield: 2.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Centene

A-Score: 3.8/10

Value: 9.5

Growth: 5.6

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

325.64$

Current Price

325.64$

Potential

-0.00%

Expected Cash-Flows