UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - New York Stock Exchange, Inc. - US9139031002 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UHS. UHS was compared to 105 industry peers in the Health Care Providers & Services industry. While UHS has a great profitability rating, there are some minor concerns on its financial health. UHS may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, UHS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
UHS had positive earnings in the past year.
UHS had a positive operating cash flow in the past year.
UHS had positive earnings in each of the past 5 years.
In the past 5 years UHS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UHS (7.89%) is better than 91.43% of its industry peers.
The Return On Equity of UHS (17.13%) is better than 84.76% of its industry peers.
UHS's Return On Invested Capital of 10.57% is amongst the best of the industry. UHS outperforms 85.71% of its industry peers.
UHS had an Average Return On Invested Capital over the past 3 years of 8.28%. This is in line with the industry average of 8.81%.
The 3 year average ROIC (8.28%) for UHS is below the current ROIC(10.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 17.13% | ||
| ROIC | 10.57% |
ROA(3y)6.01%
ROA(5y)6.51%
ROE(3y)13.4%
ROE(5y)14.27%
ROIC(3y)8.28%
ROIC(5y)8.76%
1.3 Margins
UHS's Profit Margin of 7.22% is amongst the best of the industry. UHS outperforms 84.76% of its industry peers.
In the last couple of years the Profit Margin of UHS has remained more or less at the same level.
UHS's Operating Margin of 10.63% is amongst the best of the industry. UHS outperforms 84.76% of its industry peers.
In the last couple of years the Operating Margin of UHS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| PM (TTM) | 7.22% | ||
| GM | N/A |
OM growth 3Y-0.49%
OM growth 5Y-0.12%
PM growth 3Y-2.68%
PM growth 5Y0.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UHS is still creating some value.
The number of shares outstanding for UHS has been reduced compared to 1 year ago.
The number of shares outstanding for UHS has been reduced compared to 5 years ago.
UHS has a better debt/assets ratio than last year.
2.2 Solvency
UHS has an Altman-Z score of 2.96. This is not the best score and indicates that UHS is in the grey zone with still only limited risk for bankruptcy at the moment.
UHS's Altman-Z score of 2.96 is fine compared to the rest of the industry. UHS outperforms 67.62% of its industry peers.
UHS has a debt to FCF ratio of 4.01. This is a neutral value as UHS would need 4.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.01, UHS is in the better half of the industry, outperforming 70.48% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that UHS is somewhat dependend on debt financing.
UHS's Debt to Equity ratio of 0.67 is in line compared to the rest of the industry. UHS outperforms 55.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.44
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.27 indicates that UHS should not have too much problems paying its short term obligations.
UHS has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that UHS should not have too much problems paying its short term obligations.
UHS's Quick ratio of 1.17 is in line compared to the rest of the industry. UHS outperforms 41.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
UHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.73%, which is quite impressive.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.82%.
UHS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.82% yearly.
EPS 1Y (TTM)57.73%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%57.19%
Revenue 1Y (TTM)10.82%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%11.08%
3.2 Future
Based on estimates for the next years, UHS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.93% on average per year.
UHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.65% yearly.
EPS Next Y16.84%
EPS Next 2Y13.58%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue Next Year9.18%
Revenue Next 2Y7.27%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.69, which indicates a very decent valuation of UHS.
87.62% of the companies in the same industry are more expensive than UHS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. UHS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.30 indicates a reasonable valuation of UHS.
Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 92.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UHS to the average of the S&P500 Index (20.85), we can say UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 83.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 87.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UHS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UHS's earnings are expected to grow with 12.93% in the coming years.
PEG (NY)0.58
PEG (5Y)0.9
EPS Next 2Y13.58%
EPS Next 3Y12.93%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.46%, which is pretty low.
UHS's Dividend Yield is a higher than the industry average which is at 3.75.
With a Dividend Yield of 0.46, UHS pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of UHS is nicely growing with an annual growth rate of 6.27%!
UHS has paid a dividend for at least 10 years, which is a reliable track record.
UHS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.27%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
4.67% of the earnings are spent on dividend by UHS. This is a low number and sustainable payout ratio.
UHS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.67%
EPS Next 2Y13.58%
EPS Next 3Y12.93%
161.3
+4.25 (+2.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.91%
Inst Owner Change0.59%
Ins Owners4.24%
Ins Owner Change13.28%
Market Cap10.52B
Analysts72
Price Target232.84 (44.35%)
Short Float %3.56%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.81
Dividend Growth(5Y)6.27%
DP4.67%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.59%
Min EPS beat(2)0.53%
Max EPS beat(2)16.65%
EPS beat(4)4
Avg EPS beat(4)15.91%
Min EPS beat(4)0.53%
Max EPS beat(4)29.99%
EPS beat(8)8
Avg EPS beat(8)10.74%
EPS beat(12)10
Avg EPS beat(12)5.81%
EPS beat(16)13
Avg EPS beat(16)7.02%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)0.77%
Min Revenue beat(4)0.12%
Max Revenue beat(4)1.57%
Revenue beat(8)6
Avg Revenue beat(8)0.36%
Revenue beat(12)10
Avg Revenue beat(12)0.48%
Revenue beat(16)14
Avg Revenue beat(16)1%
PT rev (1m)-0.67%
PT rev (3m)-4.2%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)6%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.3 | ||
| P/S | 0.66 | ||
| P/FCF | 9.36 | ||
| P/OCF | 5.09 | ||
| P/B | 1.58 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)16.64
EY10.32%
EPS(NY)19.44
Fwd EY12.05%
FCF(TTM)17.23
FCFY10.68%
OCF(TTM)31.7
OCFY19.66%
SpS242.76
BVpS102.24
TBVpS41.92
PEG (NY)0.58
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 17.13% | ||
| ROCE | 13.72% | ||
| ROIC | 10.57% | ||
| ROICexc | 10.68% | ||
| ROICexgc | 15.81% | ||
| OM | 10.63% | ||
| PM (TTM) | 7.22% | ||
| GM | N/A | ||
| FCFM | 7.1% |
ROA(3y)6.01%
ROA(5y)6.51%
ROE(3y)13.4%
ROE(5y)14.27%
ROIC(3y)8.28%
ROIC(5y)8.76%
ROICexc(3y)8.36%
ROICexc(5y)9.07%
ROICexgc(3y)12.5%
ROICexgc(5y)14.04%
ROCE(3y)10.74%
ROCE(5y)11.37%
ROICexcg growth 3Y1.9%
ROICexcg growth 5Y0.81%
ROICexc growth 3Y3.79%
ROICexc growth 5Y2.74%
OM growth 3Y-0.49%
OM growth 5Y-0.12%
PM growth 3Y-2.68%
PM growth 5Y0.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.01 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 161.38% | ||
| Cap/Sales | 5.96% | ||
| Interest Coverage | 9.99 | ||
| Cash Conversion | 91.2% | ||
| Profit Quality | 98.36% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.96 |
F-Score8
WACC7.33%
ROIC/WACC1.44
Cap/Depr(3y)139.45%
Cap/Depr(5y)144.53%
Cap/Sales(3y)5.55%
Cap/Sales(5y)5.95%
Profit Quality(3y)70.11%
Profit Quality(5y)77.19%
High Growth Momentum
Growth
EPS 1Y (TTM)57.73%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%57.19%
EPS Next Y16.84%
EPS Next 2Y13.58%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue 1Y (TTM)10.82%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%11.08%
Revenue Next Year9.18%
Revenue Next 2Y7.27%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
EBIT growth 1Y43.09%
EBIT growth 3Y7.25%
EBIT growth 5Y6.7%
EBIT Next Year51.47%
EBIT Next 3Y20.08%
EBIT Next 5YN/A
FCF growth 1Y114.07%
FCF growth 3Y242.18%
FCF growth 5Y7.48%
OCF growth 1Y63.05%
OCF growth 3Y32.75%
OCF growth 5Y7.52%