NYSE:UHS is probably undervalued for the fundamentals it is displaying.

Last update: Oct 2, 2024

Uncover the hidden value in UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as our stock screening tool recommends it as an undervalued choice. NYSE:UHS maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Exploring NYSE:UHS's Valuation

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 8 out of 10:

Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 31.08. UHS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 88.60% of the companies in the same industry.
UHS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
80.70% 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 cheaper than 82.46% 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.
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 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:

With an excellent Return On Assets value of 6.64%, UHS belongs to the best of the industry, outperforming 91.23% of the companies in the same industry.
UHS's Return On Equity of 14.40% is amongst the best of the industry. UHS outperforms 86.84% of its industry peers.
UHS's Return On Invested Capital of 9.21% is amongst the best of the industry. UHS outperforms 86.84% 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 88.60% of its industry peers.
UHS has a Operating Margin of 9.60%. This is amongst the best in the industry. UHS outperforms 85.09% of its industry peers.

Analyzing Health Metrics

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:

UHS has an Altman-Z score of 3.27. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.27, UHS is doing good in the industry, outperforming 73.68% of the companies in the same industry.
With a decent Debt to FCF ratio value of 5.45, UHS is doing good in the industry, outperforming 78.07% of the companies in the same industry.

Growth Examination 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.
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.
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.

More Decent Value stocks can be found 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.