For those who appreciate value investing, NYSE:UHS is a compelling option with its solid fundamentals.

Last update: Nov 21, 2024

Uncover the potential of UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as our stock screener's choice for an undervalued stock. NYSE:UHS maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NYSE:UHS

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 9 out of 10:

Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 88.50% of the companies are valued more expensively.
UHS is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.92, the valuation of UHS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 88.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, UHS is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 83.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UHS is valued cheaper than 86.73% 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 23.89% in the coming years. This may justify a more expensive valuation.

Looking at the 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:

With an excellent Return On Assets value of 7.15%, UHS belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
The Return On Equity of UHS (15.53%) is better than 87.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.51%, UHS belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
The 3 year average ROIC (7.81%) for UHS is below the current ROIC(9.51%), indicating increased profibility in the last year.
UHS has a Profit Margin of 6.65%. This is amongst the best in the industry. UHS outperforms 87.61% of its industry peers.
Looking at the Operating Margin, with a value of 9.99%, UHS belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:UHS has achieved a 5 out of 10:

The Debt to FCF ratio of UHS (4.87) is better than 79.65% 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:

The Earnings Per Share has grown by an impressive 42.24% over the past year.
UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
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.

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

Check the latest full fundamental report of UHS for a complete fundamental analysis.

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.