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

Last update: Jun 5, 2024

UNITED THERAPEUTICS CORP (NASDAQ:UTHR) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:UTHR showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Deciphering NASDAQ:UTHR's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:UTHR has earned a 8 for valuation:

97.75% of the companies in the same industry are more expensive than UTHR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (27.88), we can say UTHR is valued rather cheaply.
A Price/Forward Earnings ratio of 10.10 indicates a reasonable valuation of UTHR.
UTHR's Price/Forward Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 97.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.96, UTHR is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 98.44% of the companies listed in the same industry.
98.44% of the companies in the same industry are more expensive than UTHR, based on the Price/Free Cash Flow ratio.
UTHR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UTHR has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:UTHR

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. NASDAQ:UTHR has earned a 8 out of 10:

UTHR has a Return On Assets of 16.17%. This is amongst the best in the industry. UTHR outperforms 98.09% of its industry peers.
The Return On Equity of UTHR (19.68%) is better than 97.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.20%, UTHR belongs to the top of the industry, outperforming 97.75% of the companies in the same industry.
The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(17.20%), indicating increased profibility in the last year.
UTHR's Profit Margin of 42.05% is amongst the best of the industry. UTHR outperforms 99.48% of its industry peers.
UTHR's Profit Margin has improved in the last couple of years.
UTHR has a better Operating Margin (50.45%) than 99.83% of its industry peers.
UTHR's Gross Margin of 88.87% is amongst the best of the industry. UTHR outperforms 92.37% of its industry peers.

Health Insights: NASDAQ:UTHR

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. NASDAQ:UTHR has achieved a 7 out of 10:

An Altman-Z score of 9.12 indicates that UTHR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.12, UTHR belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
The Debt to FCF ratio of UTHR is 0.80, which is an excellent value as it means it would take UTHR, only 0.80 years of fcf income to pay off all of its debts.
UTHR has a better Debt to FCF ratio (0.80) than 96.36% of its industry peers.
UTHR has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
UTHR has a Current Ratio of 3.77. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 3.64 indicates that UTHR has no problem at all paying its short term obligations.

Growth Analysis for NASDAQ:UTHR

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. NASDAQ:UTHR scores a 6 out of 10:

UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.42%, which is quite impressive.
The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
UTHR shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.09%.
Based on estimates for the next years, UTHR will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.

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 UTHR

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.