NYSE:UHS appears to be flying under the radar despite its strong fundamentals.

Last update: Aug 20, 2024

Our stock screener has singled out UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as a stellar value proposition. NYSE:UHS not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Exploring NYSE:UHS's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:UHS, the assigned 8 reflects its valuation:

Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 80.87% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (29.72), we can say UHS is valued slightly cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 85.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.97, UHS is valued a bit cheaper.
82.61% of the companies in the same industry are more expensive than UHS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
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 21.33% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:UHS's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:UHS was assigned a score of 7 for profitability:

UHS's Return On Assets of 6.64% is amongst the best of the industry. UHS outperforms 92.17% of its industry peers.
UHS has a Return On Equity of 14.40%. This is amongst the best in the industry. UHS outperforms 86.96% of its industry peers.
The Return On Invested Capital of UHS (9.21%) is better than 86.96% of its industry peers.
The 3 year average ROIC (7.81%) for UHS is below the current ROIC(9.21%), indicating increased profibility in the last year.
UHS has a Profit Margin of 6.22%. This is amongst the best in the industry. UHS outperforms 89.57% of its industry peers.
Looking at the Operating Margin, with a value of 9.60%, UHS belongs to the top of the industry, outperforming 85.22% of the companies in the same industry.

Health Analysis for NYSE:UHS

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:UHS was assigned a score of 6 for health:

UHS has an Altman-Z score of 3.29. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.29, UHS is doing good in the industry, outperforming 75.65% of the companies in the same industry.
UHS has a Debt to FCF ratio of 5.45. This is in the better half of the industry: UHS outperforms 76.52% of its industry peers.

Growth Assessment of 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:

UHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.26%, which is quite impressive.
The Revenue has grown by 8.83% in the past year. This is quite good.
Based on estimates for the next years, UHS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.27% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.