NASDAQ:UTHR is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Aug 15, 2024

UNITED THERAPEUTICS CORP (NASDAQ:UTHR) was identified as a decent value stock by our stock screener. NASDAQ:UTHR scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

What does the Valuation looks like for NASDAQ:UTHR

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 cheaper than 98.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.02, UTHR is valued a bit cheaper.
UTHR is valuated reasonably with a Price/Forward Earnings ratio of 11.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 96.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UTHR to the average of the S&P500 Index (20.56), we can say UTHR is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, UTHR is valued cheaply inside the industry as 98.43% of the companies are valued more expensively.
98.08% of the companies in the same industry are more expensive than UTHR, based on the Price/Free Cash Flow ratio.
The 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.
A more expensive valuation may be justified as UTHR's earnings are expected to grow with 12.54% in the coming years.

Looking at the Profitability

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:

The Return On Assets of UTHR (15.91%) is better than 99.13% of its industry peers.
Looking at the Return On Equity, with a value of 18.77%, UTHR belongs to the top of the industry, outperforming 97.90% of the companies in the same industry.
UTHR's Return On Invested Capital of 16.54% is amongst the best of the industry. UTHR outperforms 97.90% of its industry peers.
The last Return On Invested Capital (16.54%) for UTHR is above the 3 year average (12.87%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 40.87%, UTHR belongs to the top of the industry, outperforming 99.30% of the companies in the same industry.
UTHR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 48.42%, UTHR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
UTHR has a better Gross Margin (88.85%) than 91.96% of its industry peers.

Assessing Health Metrics for 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:

UTHR has an Altman-Z score of 11.29. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.29, UTHR belongs to the best of the industry, outperforming 87.59% of the companies in the same industry.
UTHR has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
UTHR has a Debt to FCF ratio of 0.57. This is amongst the best in the industry. UTHR outperforms 97.90% of its industry peers.
UTHR has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.35 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a Quick Ratio of 4.18. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Growth 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:

UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.08%, which is quite impressive.
The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
The Revenue has grown by 23.96% in the past year. This is a very strong growth!
UTHR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.04% yearly.
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.

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

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.