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

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.

Valuation Analysis for NYSE:UHS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:UHS has received a 9 out of 10:

• UHS's Price/Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 85.98% of the companies in the same industry.
• UHS is valuated cheaply when we compare the Price/Earnings ratio to 30.19, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 9.90 indicates a reasonable valuation of UHS.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 90.65% of the companies listed in the same industry.
• UHS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaper than 84.11% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
• 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.
• UHS's earnings are expected to grow with 23.87% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability 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 7.15%, UHS belongs to the best of the industry, outperforming 89.72% of the companies in the same industry.
• UHS has a Return On Equity of 15.53%. This is amongst the best in the industry. UHS outperforms 85.98% 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 84.11% 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 85.05% of its industry peers.
• With an excellent Operating Margin value of 9.99%, UHS belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.

Evaluating Health: NYSE:UHS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:UHS, the assigned 6 for health provides valuable insights:

• UHS has an Altman-Z score of 3.06. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.06, UHS is doing good in the industry, outperforming 69.16% of the companies in the same industry.
• The Debt to FCF ratio of UHS (4.87) is better than 79.44% of its industry peers.

Assessing Growth Metrics 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.

Our latest full fundamental report of UHS contains the most current fundamental analsysis.

Disclaimer

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.