NYSE:UHS is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Consider UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as a top value stock, identified by our stock screening tool. NYSE:UHS shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:UHS scores a 7 out of 10:

• UHS's Price/Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 81.42% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.57, UHS is valued a bit cheaper.
• 86.73% of the companies in the same industry are more expensive than UHS, based on the Price/Forward Earnings ratio.
• UHS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.18, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 83.19% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of UHS indicates a somewhat cheap valuation: UHS is cheaper than 76.99% of the companies listed 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 18.08% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NYSE:UHS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:UHS has earned a 7 out of 10:

• UHS has a Return On Assets of 5.81%. This is amongst the best in the industry. UHS outperforms 84.07% of its industry peers.
• Looking at the Return On Equity, with a value of 13.05%, UHS belongs to the top of the industry, outperforming 84.07% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 8.18%, UHS is in the better half of the industry, outperforming 79.65% of the companies in the same industry.
• The last Return On Invested Capital (8.18%) for UHS is above the 3 year average (7.81%), which is a sign of increasing profitability.
• UHS has a better Profit Margin (5.57%) than 84.96% of its industry peers.
• UHS's Operating Margin of 8.77% is amongst the best of the industry. UHS outperforms 81.42% of its industry peers.

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 6 for health provides valuable insights:

• UHS has an Altman-Z score of 3.00. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
• UHS's Altman-Z score of 3.00 is fine compared to the rest of the industry. UHS outperforms 74.34% of its industry peers.
• UHS has a Debt to FCF ratio of 8.23. This is in the better half of the industry: UHS outperforms 68.14% of its industry peers.

Growth Insights: NYSE:UHS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:UHS, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an nice 17.92% over the past year.
• UHS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.27% yearly.
• 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.

Our latest full fundamental report of UHS contains the most current fundamental analsysis.

Keep in mind

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.