NYSE:UHS, an undervalued stock with good fundamentals.

UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) was identified as a decent value stock by our stock screener. NYSE:UHS scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Deciphering NYSE:UHS's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:UHS has received a 7 out of 10:

• Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 81.90% of the companies are valued more expensively.
• UHS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
• UHS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 90.52% of the companies in the same industry.
• UHS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.62.
• Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
• UHS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UHS is cheaper than 66.38% of the companies in the same industry.
• UHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of UHS may justify a higher PE ratio.
• UHS's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NYSE:UHS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:UHS has achieved a 6:

• Looking at the Return On Assets, with a value of 5.14%, UHS belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 11.67%, UHS belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
• The Return On Invested Capital of UHS (7.49%) is better than 76.72% of its industry peers.
• The Profit Margin of UHS (5.02%) is better than 81.03% of its industry peers.
• Looking at the Operating Margin, with a value of 8.23%, UHS belongs to the top of the industry, outperforming 81.90% of the companies in the same industry.

How We Gauge Health for NYSE:UHS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:UHS, the assigned 5 for health provides valuable insights:

• UHS has a Altman-Z score of 2.89. This is in the better half of the industry: UHS outperforms 70.69% of its industry peers.

Growth Insights: NYSE:UHS

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:UHS has achieved a 4 out of 10:

• The Earnings Per Share is expected to grow by 18.19% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of UHS

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.