UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UHS - US9139031002 - Common Stock
205.09 USD
-0.62 (-0.3%)
201.74 USD
-3.35 (-1.63%)
UHS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. While UHS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. UHS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make UHS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year UHS was profitable.
- UHS had a positive operating cash flow in the past year.
- UHS had positive earnings in each of the past 5 years.
- Each year in the past 5 years UHS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.96%, UHS belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
- UHS's Return On Equity of 19.18% is amongst the best of the industry. UHS outperforms 87.25% of its industry peers.
- UHS's Return On Invested Capital of 12.33% is amongst the best of the industry. UHS outperforms 87.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for UHS is in line with the industry average of 9.21%.
- The last Return On Invested Capital (12.33%) for UHS is above the 3 year average (8.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.96% | ||
| ROE | 19.18% | ||
| ROIC | 12.33% |
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
- With an excellent Profit Margin value of 8.09%, UHS belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
- UHS's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 11.47%, UHS belongs to the best of the industry, outperforming 81.37% of the companies in the same industry.
- 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 | 11.47% | ||
| PM (TTM) | 8.09% | ||
| 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
- UHS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- The debt/assets ratio for UHS has been reduced compared to a year ago.
2.2 Solvency
- UHS has an Altman-Z score of 3.13. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.13, UHS is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
- UHS has a debt to FCF ratio of 4.84. This is a neutral value as UHS would need 4.84 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.84, UHS is doing good in the industry, outperforming 65.69% of the companies in the same industry.
- UHS has a Debt/Equity ratio of 0.55. This is a neutral value indicating UHS is somewhat dependend on debt financing.
- UHS has a better Debt to Equity ratio (0.55) than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.5
WACC8.22%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that UHS should not have too much problems paying its short term obligations.
- UHS's Current ratio of 1.03 is on the low side compared to the rest of the industry. UHS is outperformed by 69.61% of its industry peers.
- A Quick Ratio of 0.96 indicates that UHS may have some problems paying its short term obligations.
- UHS has a worse Quick ratio (0.96) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.07% over the past year.
- Measured over the past years, UHS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
- Looking at the last year, UHS shows a quite strong growth in Revenue. The Revenue has grown by 10.21% in the last year.
- Measured over the past years, UHS shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
EPS 1Y (TTM)40.07%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%53.37%
Revenue 1Y (TTM)10.21%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%13.43%
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 13.53% yearly.
- The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y32.21%
EPS Next 2Y19.65%
EPS Next 3Y16.81%
EPS Next 5Y13.53%
Revenue Next Year10.55%
Revenue Next 2Y7.73%
Revenue Next 3Y6.88%
Revenue Next 5Y4.9%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.86, the valuation of UHS can be described as reasonable.
- Based on the Price/Earnings ratio, UHS is valued cheaper than 93.14% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. UHS is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.61 indicates a reasonable valuation of UHS.
- UHS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 94.12% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. UHS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, UHS is valued a bit cheaper than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 6.83 |
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.
- A more expensive valuation may be justified as UHS's earnings are expected to grow with 16.81% in the coming years.
PEG (NY)0.31
PEG (5Y)0.92
EPS Next 2Y19.65%
EPS Next 3Y16.81%
5. Dividend
5.1 Amount
- UHS has a yearly dividend return of 0.39%, which is pretty low.
- UHS's Dividend Yield is rather good when compared to the industry average which is at 0.59. UHS pays more dividend than 80.39% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, UHS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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 Years4
5.3 Sustainability
- UHS pays out 3.78% of its income as dividend. This is a sustainable payout ratio.
- The dividend of UHS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP3.78%
EPS Next 2Y19.65%
EPS Next 3Y16.81%
UNIVERSAL HEALTH SERVICES-B / UHS FAQ
What is the fundamental rating for UHS stock?
ChartMill assigns a fundamental rating of 6 / 10 to UHS.
Can you provide the valuation status for UNIVERSAL HEALTH SERVICES-B?
ChartMill assigns a valuation rating of 8 / 10 to UNIVERSAL HEALTH SERVICES-B (UHS). This can be considered as Undervalued.
What is the profitability of UHS stock?
UNIVERSAL HEALTH SERVICES-B (UHS) has a profitability rating of 7 / 10.
What is the financial health of UNIVERSAL HEALTH SERVICES-B (UHS) stock?
The financial health rating of UNIVERSAL HEALTH SERVICES-B (UHS) is 5 / 10.
How sustainable is the dividend of UNIVERSAL HEALTH SERVICES-B (UHS) stock?
The dividend rating of UNIVERSAL HEALTH SERVICES-B (UHS) is 6 / 10 and the dividend payout ratio is 3.78%.