NYSE:UHS: good value for what you're paying.

UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) was identified as a decent value stock by our stock screener. NYSE:UHS scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Evaluating Valuation: NYSE:UHS

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:UHS was assigned a score of 9 for valuation:

• Based on the Price/Earnings ratio, UHS is valued cheaper than 86.67% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.17. UHS is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 9.78 indicates a reasonable valuation of UHS.
• Based on the Price/Forward Earnings ratio, UHS is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 23.59. UHS is valued rather cheaply when compared to this.
• UHS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UHS is cheaper than 85.71% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 85.71% of the companies listed 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 23.87% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:UHS's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:UHS scores a 7 out of 10:

• UHS has a better Return On Assets (7.15%) than 90.48% of its industry peers.
• Looking at the Return On Equity, with a value of 15.53%, UHS belongs to the top of the industry, outperforming 87.62% of the companies in the same industry.
• The Return On Invested Capital of UHS (9.51%) is better than 84.76% 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.
• With an excellent Profit Margin value of 6.65%, UHS belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
• UHS's Operating Margin of 9.99% is amongst the best of the industry. UHS outperforms 84.76% of its industry peers.

Health Assessment of NYSE:UHS

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 3.05 indicates that UHS is not in any danger for bankruptcy at the moment.
• UHS has a Altman-Z score of 3.05. This is in the better half of the industry: UHS outperforms 72.38% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 4.87, UHS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.

A Closer Look at Growth for NYSE:UHS

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.
• Looking at the last year, UHS shows a quite strong growth in Revenue. The Revenue has grown by 9.93% in the last year.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

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

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.