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

Our stock screening tool has pinpointed UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as an undervalued stock option. NYSE:UHS retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Understanding NYSE:UHS's Valuation

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:

• Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 28.19. UHS is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 10.20 indicates a reasonable valuation of UHS.
• Based on the Price/Forward Earnings ratio, UHS is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
• UHS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.37.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 84.11% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 85.98% of the companies are valued more expensively.
• 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.
• UHS's earnings are expected to grow with 23.87% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

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:

• With an excellent Return On Assets value of 7.15%, UHS belongs to the best of the industry, outperforming 90.65% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 15.53%, UHS belongs to the top of the industry, outperforming 87.85% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 9.51%, UHS belongs to the best of the industry, outperforming 85.05% 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.
• The Profit Margin of UHS (6.65%) is better than 86.92% of its industry peers.
• The Operating Margin of UHS (9.99%) is better than 85.05% of its industry peers.

Health Analysis for NYSE:UHS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:UHS has earned a 6 out of 10:

• An Altman-Z score of 3.09 indicates that UHS is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.09, UHS is doing good in the industry, outperforming 70.09% of the companies in the same industry.
• UHS has a Debt to FCF ratio of 4.87. This is in the better half of the industry: UHS outperforms 76.64% of its industry peers.

Assessing Growth for NYSE:UHS

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:UHS scores a 5 out of 10:

• UHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.24%, which is quite impressive.
• The Revenue has grown by 9.93% 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.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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.