UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - New York Stock Exchange, Inc. - US9139031002 - Common Stock
Overall UHS gets a fundamental rating of 6 out of 10. We evaluated UHS against 108 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 This makes UHS very considerable for value investing!
1. Profitability
1.1 Basic Checks
UHS had positive earnings in the past year.
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 90.65% of its industry peers.
UHS's Return On Equity of 15.53% is amongst the best of the industry. UHS outperforms 87.85% of its industry peers.
With an excellent Return On Invested Capital value of 9.51%, UHS belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UHS is in line with the industry average of 8.27%.
The 3 year average ROIC (7.81%) for UHS is below the current ROIC(9.51%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (6.65%) than 86.92% of its industry peers.
In the last couple of years the Profit Margin of UHS has declined.
UHS's Operating Margin of 9.99% is amongst the best of the industry. UHS outperforms 85.05% of its industry peers.
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.
Compared to 1 year ago, UHS has less shares outstanding
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 3.08. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UHS (3.08) is better than 70.09% 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 76.64% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that UHS is somewhat dependend on debt financing.
UHS's Debt to Equity ratio of 0.70 is in line compared to the rest of the industry. UHS outperforms 45.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.26
WACC7.53%
2.3 Liquidity
UHS has a Current Ratio of 1.39. This is a normal value and indicates that UHS is financially healthy and should not expect problems in meeting its short term obligations.
UHS has a Current ratio (1.39) which is in line with its industry peers.
A Quick Ratio of 1.28 indicates that UHS should not have too much problems paying its short term obligations.
The Quick ratio of UHS (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
UHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.24%, which is quite impressive.
UHS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.08% yearly.
UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
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 Y52.4%
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
Based on the Price/Earnings ratio of 12.71, the valuation of UHS can be described as correct.
Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 86.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (28.29), we can say UHS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.29, the valuation of UHS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 88.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UHS to the average of the S&P500 Index (24.44), we can say UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 84.11% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 85.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | 7.88 |
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)0.24
PEG (5Y)6.12
EPS Next 2Y31.86%
EPS Next 3Y23.87%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 2.87, UHS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, UHS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of UHS is nicely growing with an annual growth rate of 14.84%!
UHS has been paying a dividend for at least 10 years, so it has 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.
The dividend of UHS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP5.25%
EPS Next 2Y31.86%
EPS Next 3Y23.87%
UNIVERSAL HEALTH SERVICES-B
NYSE:UHS (1/21/2025, 6:40:00 PM)
After market: 188.78 0 (0%)188.78
+3.98 (+2.15%)
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-0.14%
Ins Owners4.19%
Ins Owner Change6.37%
Market Cap12.45B
Analysts71.67
Price Target243.04 (28.74%)
Short Float %3.24%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.81
Dividend Growth(5Y)14.84%
DP5.25%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)-1.02%
PT rev (3m)-0.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.81 | ||
| P/FCF | 13.02 | ||
| P/OCF | 6.69 | ||
| P/B | 1.89 | ||
| P/tB | 4.72 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)14.85
EY7.87%
EPS(NY)18.34
Fwd EY9.72%
FCF(TTM)14.5
FCFY7.68%
OCF(TTM)28.21
OCFY14.94%
SpS233.71
BVpS100.13
TBVpS40.02
PEG (NY)0.24
PEG (5Y)6.12
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
WACC7.53%
ROIC/WACC1.26
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 Y52.4%
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 Year90.99%
EBIT Next 3Y29.67%
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%