UNIVERSAL HEALTH SERVICES-B (UHS)
US9139031002 - Common Stock
UHS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 industry peers in the Health Care Providers & Services industry. UHS scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on UHS. These ratings would make UHS suitable 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.
In the past 5 years UHS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.15%, UHS belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
UHS has a Return On Equity of 15.53%. This is amongst the best in the industry. UHS outperforms 87.96% of its industry peers.
The Return On Invested Capital of UHS (9.51%) is better than 85.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UHS is in line with the industry average of 8.15%.
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
With an excellent Profit Margin value of 6.65%, UHS belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
UHS's Profit Margin has declined in the last couple of years.
UHS's Operating Margin of 9.99% is amongst the best of the industry. UHS outperforms 85.19% 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
UHS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UHS has been reduced compared to 1 year ago.
Compared to 5 years ago, UHS has less shares outstanding
UHS has a better debt/assets ratio than last year.
2.2 Solvency
UHS has an Altman-Z score of 3.03. This indicates that UHS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UHS (3.03) is better than 72.22% of its industry peers.
The Debt to FCF ratio of UHS is 4.87, which is a neutral value as it means it would take UHS, 4.87 years of fcf income to pay off all of its debts.
UHS has a Debt to FCF ratio of 4.87. This is in the better half of the industry: UHS outperforms 75.93% of its industry peers.
UHS has a Debt/Equity ratio of 0.70. This is a neutral value indicating UHS is somewhat dependend on debt financing.
UHS has a Debt to Equity ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.28
WACC7.45%
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.
The Current ratio of UHS (1.39) is comparable to the rest of the industry.
A Quick Ratio of 1.28 indicates that UHS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, UHS perfoms like the industry average, outperforming 45.37% of the companies in the same 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.
The Earnings Per Share has been growing slightly by 2.08% on average over the past years.
The Revenue has grown by 9.93% in the past year. This is quite good.
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
Based on estimates for the next years, UHS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.27% on average per year.
Based on estimates for the next years, UHS will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y52.55%
EPS Next 2Y31.84%
EPS Next 3Y24.32%
EPS Next 5Y15.27%
Revenue Next Year10.42%
Revenue Next 2Y8.41%
Revenue Next 3Y7.51%
Revenue Next 5Y5.15%
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
A Price/Earnings ratio of 12.13 indicates a correct valuation of UHS.
87.04% of the companies in the same industry are more expensive than UHS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, UHS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.82, the valuation of UHS can be described as reasonable.
89.81% of the companies in the same industry are more expensive than UHS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaper than 87.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 7.6 |
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.
The decent profitability rating of UHS may justify a higher PE ratio.
UHS's earnings are expected to grow with 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)5.84
EPS Next 2Y31.84%
EPS Next 3Y24.32%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.46%, which is pretty low.
In the last 3 months the price of UHS has falen by -24.33%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.12, UHS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.46, UHS pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of UHS is nicely growing with an annual growth rate of 14.84%!
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
5.25% of the earnings are spent on dividend by UHS. This is a low number and 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 2Y31.84%
EPS Next 3Y24.32%
UNIVERSAL HEALTH SERVICES-B
NYSE:UHS (12/20/2024, 8:04:00 PM)
After market: 180.11 0 (0%)180.11
+4.31 (+2.45%)
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 Change0.09%
Ins Owners4.19%
Ins Owner Change6.37%
Market Cap11.88B
Analysts72.5
Price Target245.56 (36.34%)
Short Float %2.72%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-1.55%
PT rev (3m)2.14%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.77 | ||
| P/FCF | 12.42 | ||
| P/OCF | 6.38 | ||
| P/B | 1.8 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)14.85
EY8.24%
EPS(NY)18.34
Fwd EY10.18%
FCF(TTM)14.5
FCFY8.05%
OCF(TTM)28.21
OCFY15.66%
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 | 3.03 |
F-Score9
WACC7.45%
ROIC/WACC1.28
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 Y52.55%
EPS Next 2Y31.84%
EPS Next 3Y24.32%
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 2Y8.41%
Revenue Next 3Y7.51%
Revenue Next 5Y5.15%
EBIT growth 1Y39.34%
EBIT growth 3Y-4.7%
EBIT growth 5Y0.01%
EBIT Next Year90.73%
EBIT Next 3Y29.65%
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%