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 108 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make UHS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year UHS was profitable.
In the past year UHS had a positive cash flow from operations.
UHS had positive earnings in each of the past 5 years.
UHS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UHS has a Return On Assets of 7.15%. This is amongst the best in the industry. UHS outperforms 89.72% of its industry peers.
Looking at the Return On Equity, with a value of 15.53%, UHS belongs to the top of the industry, outperforming 85.98% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.51%, UHS belongs to the best of the industry, outperforming 84.11% of the companies in the same industry.
UHS had an Average Return On Invested Capital over the past 3 years of 7.81%. This is in line with the industry average of 8.14%.
The last Return On Invested Capital (9.51%) for UHS is above the 3 year average (7.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 15.53% | ||
| ROIC | 9.51% |
ROA(3y)5.9%
ROA(5y)6.33%
ROE(3y)13.11%
ROE(5y)13.8%
ROIC(3y)7.81%
ROIC(5y)8.4%
1.3 Margins
UHS's Profit Margin of 6.65% is amongst the best of the industry. UHS outperforms 85.05% of its industry peers.
UHS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.99%, UHS belongs to the top of the industry, outperforming 85.05% of the companies in the same industry.
In the last couple of years the Operating Margin of UHS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 6.65% | ||
| GM | N/A |
OM growth 3Y-11.19%
OM growth 5Y-5.48%
PM growth 3Y-14.86%
PM growth 5Y-7.03%
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.
UHS has less shares outstanding than it did 1 year ago.
UHS has less shares outstanding than it did 5 years ago.
UHS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that UHS is not in any danger for bankruptcy at the moment.
UHS's Altman-Z score of 3.08 is fine compared to the rest of the industry. UHS outperforms 69.16% of its industry peers.
UHS has a debt to FCF ratio of 4.87. This is a neutral value as UHS would need 4.87 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.87, UHS is doing good in the industry, outperforming 79.44% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that UHS is somewhat dependend on debt financing.
UHS has a Debt to Equity ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.19
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.39 indicates that UHS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, UHS perfoms like the industry average, outperforming 44.86% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that UHS should not have too much problems paying its short term obligations.
UHS has a Quick ratio of 1.28. This is comparable to the rest of the industry: UHS outperforms 44.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.24% over the past year.
Measured over the past 5 years, UHS shows a small growth in Earnings Per Share. The EPS has been growing by 2.08% on average per year.
Looking at the last year, UHS shows a quite strong growth in Revenue. The Revenue has grown by 9.93% in the last year.
UHS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.80% yearly.
EPS 1Y (TTM)42.24%
EPS 3Y-1.77%
EPS 5Y2.08%
EPS Q2Q%45.49%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.31%
Revenue growth 5Y5.8%
Sales Q2Q%11.23%
3.2 Future
UHS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.27% yearly.
UHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y52.41%
EPS Next 2Y31.86%
EPS Next 3Y23.87%
EPS Next 5Y15.27%
Revenue Next Year10.42%
Revenue Next 2Y8.35%
Revenue Next 3Y7.43%
Revenue Next 5Y5.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
UHS is valuated correctly with a Price/Earnings ratio of 12.12.
Based on the Price/Earnings ratio, UHS is valued cheaper than 85.98% of the companies in the same industry.
UHS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
UHS is valuated reasonably with a Price/Forward Earnings ratio of 9.82.
Based on the Price/Forward Earnings ratio, UHS is valued cheaply inside the industry as 91.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UHS to the average of the S&P500 Index (22.68), we can say UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
UHS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UHS is cheaper than 84.11% of the companies in the same industry.
UHS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UHS is cheaper than 88.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
UHS's 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.
UHS's earnings are expected to grow with 23.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)5.84
EPS Next 2Y31.86%
EPS Next 3Y23.87%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 2.95, UHS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, UHS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
On average, the dividend of UHS grows each year by 14.84%, which is quite nice.
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)14.84%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UHS pays out 5.25% of its income as dividend. This is a sustainable payout ratio.
UHS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP5.25%
EPS Next 2Y31.86%
EPS Next 3Y23.87%
180.03
-4.14 (-2.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.13%
Inst Owner Change-0.03%
Ins Owners4.19%
Ins Owner Change6.68%
Market Cap11.88B
Analysts71.67
Price Target238.42 (32.43%)
Short Float %3.19%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.81
Dividend Growth(5Y)14.84%
DP5.25%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.26%
Min EPS beat(2)0.53%
Max EPS beat(2)29.99%
EPS beat(4)4
Avg EPS beat(4)13.55%
Min EPS beat(4)0.53%
Max EPS beat(4)29.99%
EPS beat(8)8
Avg EPS beat(8)8.79%
EPS beat(12)10
Avg EPS beat(12)4.58%
EPS beat(16)13
Avg EPS beat(16)7.71%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.12%
Max Revenue beat(2)0.56%
Revenue beat(4)4
Avg Revenue beat(4)0.41%
Min Revenue beat(4)0.12%
Max Revenue beat(4)0.83%
Revenue beat(8)6
Avg Revenue beat(8)0.2%
Revenue beat(12)10
Avg Revenue beat(12)0.61%
Revenue beat(16)14
Avg Revenue beat(16)1.05%
PT rev (1m)-1.9%
PT rev (3m)-4.41%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.77 | ||
| P/FCF | 12.41 | ||
| P/OCF | 6.38 | ||
| P/B | 1.8 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)14.85
EY8.25%
EPS(NY)18.34
Fwd EY10.19%
FCF(TTM)14.5
FCFY8.06%
OCF(TTM)28.21
OCFY15.67%
SpS233.71
BVpS100.13
TBVpS40.02
PEG (NY)0.23
PEG (5Y)5.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 15.53% | ||
| ROCE | 12.48% | ||
| ROIC | 9.51% | ||
| ROICexc | 9.59% | ||
| ROICexgc | 14.19% | ||
| OM | 9.99% | ||
| PM (TTM) | 6.65% | ||
| GM | N/A | ||
| FCFM | 6.21% |
ROA(3y)5.9%
ROA(5y)6.33%
ROE(3y)13.11%
ROE(5y)13.8%
ROIC(3y)7.81%
ROIC(5y)8.4%
ROICexc(3y)7.89%
ROICexc(5y)8.69%
ROICexgc(3y)12.06%
ROICexgc(5y)13.75%
ROCE(3y)10.26%
ROCE(5y)11.03%
ROICexcg growth 3Y-13.6%
ROICexcg growth 5Y-5.78%
ROICexc growth 3Y-10.59%
ROICexc growth 5Y-3.87%
OM growth 3Y-11.19%
OM growth 5Y-5.48%
PM growth 3Y-14.86%
PM growth 5Y-7.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 154.96% | ||
| Cap/Sales | 5.87% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 87.62% | ||
| Profit Quality | 93.26% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.08 |
F-Score9
WACC7.96%
ROIC/WACC1.19
Cap/Depr(3y)139.14%
Cap/Depr(5y)138.98%
Cap/Sales(3y)5.82%
Cap/Sales(5y)5.91%
Profit Quality(3y)38.27%
Profit Quality(5y)76.78%
High Growth Momentum
Growth
EPS 1Y (TTM)42.24%
EPS 3Y-1.77%
EPS 5Y2.08%
EPS Q2Q%45.49%
EPS Next Y52.41%
EPS Next 2Y31.86%
EPS Next 3Y23.87%
EPS Next 5Y15.27%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.31%
Revenue growth 5Y5.8%
Sales Q2Q%11.23%
Revenue Next Year10.42%
Revenue Next 2Y8.35%
Revenue Next 3Y7.43%
Revenue Next 5Y5.15%
EBIT growth 1Y39.34%
EBIT growth 3Y-4.7%
EBIT growth 5Y0.01%
EBIT Next Year90.9%
EBIT Next 3Y29.62%
EBIT Next 5YN/A
FCF growth 1Y265.83%
FCF growth 3Y-31.41%
FCF growth 5Y-1.76%
OCF growth 1Y82.33%
OCF growth 3Y-18.71%
OCF growth 5Y-0.11%