UNHNEUTRAL

Gross Margin

22.7%

Updated 56h ago

Sector Performance

17th percentile

UNH

22.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

UNH's gross margin of 22.7% means that for every dollar of revenue, the company keeps about 22.7 cents after paying the direct costs of providing its services, with the rest covering other expenses and profit.

This figure sits well below the sector median of 44.6%, placing UNH in the 17th percentile among its peers — indicating a notably lower profitability efficiency on core operations. Year-over-year and quarter-over-quarter changes are both N/A, and no trend data for the last eight quarters is available, so it is not possible to assess whether the margin has been improving or deteriorating. Given the combination of a low margin level and the absence of any trend direction, the risk is elevated because a weak gross margin without a track record of improvement leaves the company financially exposed to cost increases or pricing pressure. This metric does not contradict the overall NEUTRAL verdict — the low absolute level suggests caution, but without any negative trend data, it does not provide enough evidence to move the rating down or up.

Frequently Asked Questions

What does the Gross Margin tell investors about UNH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are UNH's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.