U.S. PHYSICAL THERAPY INC (USPH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USPH - US90337L1089 - Common Stock
83.725 USD
-2.06 (-2.4%)
We assign a fundamental rating of 5 out of 10 to USPH. USPH was compared to 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of USPH get a neutral evaluation. Nothing too spectacular is happening here. USPH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- USPH had positive earnings in the past year.
- In the past year USPH had a positive cash flow from operations.
- Each year in the past 5 years USPH has been profitable.
- Each year in the past 5 years USPH had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.01%, USPH is in the better half of the industry, outperforming 64.08% of the companies in the same industry.
- With a decent Return On Equity value of 7.15%, USPH is doing good in the industry, outperforming 66.02% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.11%, USPH is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for USPH is below the industry average of 9.21%.
- The 3 year average ROIC (5.78%) for USPH is below the current ROIC(6.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 7.15% | ||
| ROIC | 6.11% |
ROA(3y)2.54%
ROA(5y)3.42%
ROE(3y)6.25%
ROE(5y)8.16%
ROIC(3y)5.78%
ROIC(5y)6.77%
1.3 Margins
- With a decent Profit Margin value of 4.75%, USPH is doing good in the industry, outperforming 78.64% of the companies in the same industry.
- USPH's Profit Margin has declined in the last couple of years.
- USPH's Operating Margin of 11.52% is amongst the best of the industry. USPH outperforms 82.52% of its industry peers.
- USPH's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 18.80%, USPH is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
- USPH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.52% | ||
| PM (TTM) | 4.75% | ||
| GM | 18.8% |
OM growth 3Y-9.96%
OM growth 5Y-5.7%
PM growth 3Y-13.05%
PM growth 5Y-8.65%
GM growth 3Y-6.9%
GM growth 5Y-3.92%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), USPH is destroying value.
- Compared to 1 year ago, USPH has more shares outstanding
- Compared to 5 years ago, USPH has more shares outstanding
- The debt/assets ratio for USPH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that USPH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- USPH has a Altman-Z score (2.31) which is in line with its industry peers.
- The Debt to FCF ratio of USPH is 2.82, which is a good value as it means it would take USPH, 2.82 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.82, USPH is doing good in the industry, outperforming 74.76% of the companies in the same industry.
- A Debt/Equity ratio of 0.30 indicates that USPH is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.30, USPH is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.7
WACC8.71%
2.3 Liquidity
- A Current Ratio of 1.20 indicates that USPH should not have too much problems paying its short term obligations.
- USPH has a Current ratio of 1.20. This is comparable to the rest of the industry: USPH outperforms 43.69% of its industry peers.
- USPH has a Quick Ratio of 1.20. This is a normal value and indicates that USPH is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.20, USPH perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- USPH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.17%.
- Measured over the past years, USPH shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.76% on average per year.
- Looking at the last year, USPH shows a quite strong growth in Revenue. The Revenue has grown by 17.50% in the last year.
- USPH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.85% yearly.
EPS 1Y (TTM)3.17%
EPS 3Y-6.63%
EPS 5Y-1.76%
EPS Q2Q%-4.35%
Revenue 1Y (TTM)17.5%
Revenue growth 3Y10.69%
Revenue growth 5Y6.85%
Sales Q2Q%17.32%
3.2 Future
- The Earnings Per Share is expected to grow by 8.49% on average over the next years. This is quite good.
- USPH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.56% yearly.
EPS Next Y3.85%
EPS Next 2Y8.66%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue Next Year16.97%
Revenue Next 2Y11.52%
Revenue Next 3Y9.56%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.20, the valuation of USPH can be described as expensive.
- USPH's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of USPH to the average of the S&P500 Index (27.25), we can say USPH is valued inline with the index average.
- The Price/Forward Earnings ratio is 27.48, which means the current valuation is very expensive for USPH.
- USPH's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, USPH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.2 | ||
| Fwd PE | 27.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, USPH is valued a bit cheaper than the industry average as 65.05% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, USPH is valued a bit cheaper than the industry average as 62.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 12.93 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of USPH may justify a higher PE ratio.
PEG (NY)8.37
PEG (5Y)N/A
EPS Next 2Y8.66%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.06%, USPH has a reasonable but not impressive dividend return.
- USPH's Dividend Yield is rather good when compared to the industry average which is at 0.45. USPH pays more dividend than 93.20% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, USPH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
- The dividend of USPH is nicely growing with an annual growth rate of 9.09%!
- USPH has been paying a dividend for at least 10 years, so it has a reliable track record.
- USPH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.09%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 75.41% of the earnings are spent on dividend by USPH. This is not a sustainable payout ratio.
- USPH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP75.41%
EPS Next 2Y8.66%
EPS Next 3Y8.49%
U.S. PHYSICAL THERAPY INC / USPH FAQ
What is the ChartMill fundamental rating of U.S. PHYSICAL THERAPY INC (USPH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to USPH.
What is the valuation status for USPH stock?
ChartMill assigns a valuation rating of 3 / 10 to U.S. PHYSICAL THERAPY INC (USPH). This can be considered as Overvalued.
What is the profitability of USPH stock?
U.S. PHYSICAL THERAPY INC (USPH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of U.S. PHYSICAL THERAPY INC (USPH) stock?
The Price/Earnings (PE) ratio for U.S. PHYSICAL THERAPY INC (USPH) is 32.2 and the Price/Book (PB) ratio is 2.53.
Is the dividend of U.S. PHYSICAL THERAPY INC sustainable?
The dividend rating of U.S. PHYSICAL THERAPY INC (USPH) is 5 / 10 and the dividend payout ratio is 75.41%.