When you look at NASDAQ:UTHR, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Jun 26, 2024

Consider UNITED THERAPEUTICS CORP (NASDAQ:UTHR) as a top value stock, identified by our stock screening tool. NASDAQ:UTHR shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NASDAQ:UTHR

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:UTHR boasts a 8 out of 10:

98.08% of the companies in the same industry are more expensive than UTHR, based on the Price/Earnings ratio.
UTHR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.75, the valuation of UTHR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 96.68% of the companies listed in the same industry.
UTHR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.14, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 98.60% of the companies listed in the same industry.
UTHR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UTHR is cheaper than 98.25% of the companies in the same industry.
UTHR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of UTHR may justify a higher PE ratio.

Profitability Analysis for NASDAQ:UTHR

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:UTHR has achieved a 8:

UTHR has a better Return On Assets (16.17%) than 98.43% of its industry peers.
UTHR has a Return On Equity of 19.68%. This is amongst the best in the industry. UTHR outperforms 97.38% of its industry peers.
UTHR's Return On Invested Capital of 17.20% is amongst the best of the industry. UTHR outperforms 97.90% of its industry peers.
The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(17.20%), indicating increased profibility in the last year.
UTHR has a better Profit Margin (42.05%) than 99.48% of its industry peers.
In the last couple of years the Profit Margin of UTHR has grown nicely.
UTHR's Operating Margin of 50.45% is amongst the best of the industry. UTHR outperforms 99.83% of its industry peers.
UTHR's Gross Margin of 88.87% is amongst the best of the industry. UTHR outperforms 92.48% of its industry peers.

Deciphering NASDAQ:UTHR's Health Rating

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:

UTHR has an Altman-Z score of 10.17. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
UTHR has a Altman-Z score of 10.17. This is amongst the best in the industry. UTHR outperforms 86.54% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.80, UTHR belongs to the best of the industry, outperforming 96.33% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that UTHR is not too dependend on debt financing.
A Current Ratio of 3.77 indicates that UTHR has no problem at all paying its short term obligations.
A Quick Ratio of 3.64 indicates that UTHR has no problem at all paying its short term obligations.

Growth Examination for NASDAQ:UTHR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:UTHR boasts a 6 out of 10:

The Earnings Per Share has grown by an impressive 42.42% over the past year.
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%.
The Revenue is expected to grow by 9.04% on average over the next years. This is quite good.
When comparing the Revenue 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 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.