Investors should take notice of NYSE:UHS—it offers a great deal for the fundamentals it presents.

Discover UNIVERSAL HEALTH SERVICES-B (NYSE:UHS)—an undervalued stock our stock screener has picked out. NYSE:UHS demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Looking at the Valuation

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 8 out of 10:

• Based on the Price/Earnings ratio, UHS is valued cheaper than 80.53% of the companies in the same industry.
• When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (30.02), we can say UHS is valued slightly cheaper.
• Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 89.38% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.71, UHS is valued a bit cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 84.96% of the companies listed in the same industry.
• 82.30% of the companies in the same industry are more expensive than UHS, based on the Price/Free Cash Flow ratio.
• UHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• UHS has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as UHS's earnings are expected to grow with 23.53% in the coming years.

Profitability Examination for NYSE:UHS

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:UHS, the assigned 7 is noteworthy for profitability:

• UHS has a better Return On Assets (6.64%) than 91.15% of its industry peers.
• UHS has a Return On Equity of 14.40%. This is amongst the best in the industry. UHS outperforms 87.61% of its industry peers.
• UHS's Return On Invested Capital of 9.21% is amongst the best of the industry. UHS outperforms 86.73% 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 better Profit Margin (6.22%) than 88.50% of its industry peers.
• UHS's Operating Margin of 9.60% is amongst the best of the industry. UHS outperforms 84.96% of its industry peers.

Evaluating Health: NYSE:UHS

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:UHS has received a 6 out of 10:

• An Altman-Z score of 3.28 indicates that UHS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of UHS (3.28) is better than 74.34% of its industry peers.
• The Debt to FCF ratio of UHS (5.45) is better than 77.88% of its industry peers.

A Closer Look at Growth for NYSE:UHS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:UHS has received a 5 out of 10:

• 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.
• UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.83%.
• 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.
• 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.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.