Don't overlook NASDAQ:UTHR—it's a hidden gem with strong fundamentals and an attractive price tag.

Our stock screening tool has pinpointed UNITED THERAPEUTICS CORP (NASDAQ:UTHR) as an undervalued stock. NASDAQ:UTHR maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NASDAQ:UTHR's Valuation Score

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:UTHR scores a 8 out of 10:

• Based on the Price/Earnings ratio, UTHR is valued cheaply inside the industry as 98.07% of the companies are valued more expensively.
• UTHR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.53, which is the current average of the S&P500 Index.
• UTHR's Price/Forward Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 96.85% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, UTHR is valued a bit cheaper.
• 98.60% of the companies in the same industry are more expensive than UTHR, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 98.42% of the companies listed in the same industry.
• The 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 Assessment of 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:

• Looking at the Return On Assets, with a value of 16.17%, UTHR belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
• UTHR's Return On Equity of 19.68% is amongst the best of the industry. UTHR outperforms 97.55% of its industry peers.
• UTHR has a better Return On Invested Capital (17.20%) than 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 99.47% of its industry peers.
• UTHR's Profit Margin has improved in the last couple of years.
• UTHR's Operating Margin of 50.45% is amongst the best of the industry. UTHR outperforms 99.82% of its industry peers.
• UTHR has a Gross Margin of 88.87%. This is amongst the best in the industry. UTHR outperforms 92.29% of its industry peers.

Analyzing Health Metrics

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. NASDAQ:UTHR scores a 7 out of 10:

• An Altman-Z score of 10.38 indicates that UTHR is not in any danger for bankruptcy at the moment.
• The Altman-Z score of UTHR (10.38) is better than 84.94% of its industry peers.
• UTHR has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
• The Debt to FCF ratio of UTHR (0.80) is better than 96.50% 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.
• 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 Analysis for NASDAQ:UTHR

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:UTHR was assigned a score of 6 for growth:

• The Earnings Per Share has grown by an impressive 42.42% over the past year.
• Measured over the past years, UTHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.08% on average per year.
• The Revenue has grown by 26.09% in the past year. This is a very strong growth!
• The Revenue is expected to grow by 9.04% on average over the next years. This is quite good.
• The Revenue 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 UTHR for a complete fundamental analysis.

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.