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

Last update: Dec 12, 2024

Discover UNIVERSAL HEALTH SERVICES-B (NYSE:UHS), an undervalued stock highlighted by our stock screener. NYSE:UHS showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Assessing Valuation for NYSE:UHS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:UHS has achieved a 9 out of 10:

87.16% of the companies in the same industry are more expensive than UHS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.25, UHS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.40, the valuation of UHS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 88.99% of the companies listed in the same industry.
UHS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 85.32% of the companies are valued more expensively.
UHS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UHS is cheaper than 86.24% of the companies in the same industry.
The 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.
A more expensive valuation may be justified as UHS's earnings are expected to grow with 24.32% in the coming years.

Analyzing Profitability Metrics

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 better Return On Assets (7.15%) than 90.83% of its industry peers.
UHS has a Return On Equity of 15.53%. This is amongst the best in the industry. UHS outperforms 87.16% of its industry peers.
UHS has a better Return On Invested Capital (9.51%) than 85.32% of its industry peers.
The last Return On Invested Capital (9.51%) for UHS is above the 3 year average (7.81%), which is a sign of increasing profitability.
The Profit Margin of UHS (6.65%) is better than 87.16% of its industry peers.
UHS has a better Operating Margin (9.99%) than 85.32% of its industry peers.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:UHS scores a 6 out of 10:

An Altman-Z score of 3.11 indicates that UHS is not in any danger for bankruptcy at the moment.
The Altman-Z score of UHS (3.11) is better than 71.56% of its industry peers.
UHS has a Debt to FCF ratio of 4.87. This is in the better half of the industry: UHS outperforms 76.15% of its industry peers.

Deciphering NYSE:UHS's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:UHS has earned a 5 for growth:

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%.
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.

For an up to date full fundamental analysis you can check the fundamental report of UHS

Keep in mind

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.