UNITED THERAPEUTICS CORP (UTHR) Stock Fundamental Analysis
USA - NASDAQ:UTHR - US91307C1027 - Common Stock
466.4 USD
+4.1 (+0.89%)
456 USD
-10.4 (-2.23%)
We assign a fundamental rating of 7 out of 10 to UTHR. UTHR was compared to 531 industry peers in the Biotechnology industry. UTHR gets an excellent profitability rating and is at the same time showing great financial health properties. UTHR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, UTHR could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year UTHR was profitable.
UTHR had a positive operating cash flow in the past year.
UTHR had positive earnings in each of the past 5 years.
Each year in the past 5 years UTHR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.30%, UTHR belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
The Return On Equity of UTHR (19.30%) is better than 95.29% of its industry peers.
UTHR has a better Return On Invested Capital (17.33%) than 96.80% of its industry peers.
UTHR had an Average Return On Invested Capital over the past 3 years of 14.96%. This is in line with the industry average of 15.76%.
The 3 year average ROIC (14.96%) for UTHR is below the current ROIC(17.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.3% | ||
| ROE | 19.3% | ||
| ROIC | 17.33% |
ROA(3y)14%
ROA(5y)12.47%
ROE(3y)16.72%
ROE(5y)15.47%
ROIC(3y)14.96%
ROIC(5y)13.31%
1.3 Margins
Looking at the Profit Margin, with a value of 40.65%, UTHR belongs to the top of the industry, outperforming 97.36% of the companies in the same industry.
In the last couple of years the Profit Margin of UTHR has grown nicely.
With an excellent Operating Margin value of 48.65%, UTHR belongs to the best of the industry, outperforming 99.44% of the companies in the same industry.
UTHR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.59%, UTHR belongs to the top of the industry, outperforming 90.21% of the companies in the same industry.
In the last couple of years the Gross Margin of UTHR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.65% | ||
| PM (TTM) | 40.65% | ||
| GM | 88.59% |
OM growth 3Y7.2%
OM growth 5Y2.85%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
UTHR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
UTHR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UTHR has more shares outstanding
The debt/assets ratio for UTHR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 19.64 indicates that UTHR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.64, UTHR belongs to the top of the industry, outperforming 89.83% of the companies in the same industry.
There is no outstanding debt for UTHR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 19.64 |
ROIC/WACC1.99
WACC8.72%
2.3 Liquidity
UTHR has a Current Ratio of 6.40. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
UTHR has a Current ratio of 6.40. This is in the better half of the industry: UTHR outperforms 67.42% of its industry peers.
A Quick Ratio of 6.07 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a Quick ratio of 6.07. This is in the better half of the industry: UTHR outperforms 65.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.4 | ||
| Quick Ratio | 6.07 |
3. Growth
3.1 Past
UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.90%, which is quite good.
The Earnings Per Share has been growing by 16.88% on average over the past years. This is quite good.
The Revenue has grown by 13.50% in the past year. This is quite good.
UTHR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.71% yearly.
EPS 1Y (TTM)15.9%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%12.05%
Revenue 1Y (TTM)13.5%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%6.76%
3.2 Future
UTHR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
UTHR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.21% yearly.
EPS Next Y14.15%
EPS Next 2Y9.73%
EPS Next 3Y7.6%
EPS Next 5Y11.57%
Revenue Next Year11.56%
Revenue Next 2Y8.55%
Revenue Next 3Y8.2%
Revenue Next 5Y11.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.67, the valuation of UTHR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 94.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (25.89), we can say UTHR is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.75, which indicates a correct valuation of UTHR.
UTHR's Price/Forward Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 95.10% of the companies in the same industry.
UTHR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTHR is valued cheaply inside the industry as 96.80% of the companies are valued more expensively.
UTHR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UTHR is cheaper than 95.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.9 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
UTHR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of UTHR may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)1.05
EPS Next 2Y9.73%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
UTHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
466.4
+4.1 (+0.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners99.47%
Inst Owner Change-2.76%
Ins Owners1.76%
Ins Owner Change3.66%
Market Cap21.10B
Revenue(TTM)3.13B
Net Income(TTM)1.27B
Analysts80.91
Price Target499.6 (7.12%)
Short Float %4.58%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.9%
Min EPS beat(2)-9.46%
Max EPS beat(2)-2.35%
EPS beat(4)0
Avg EPS beat(4)-4.02%
Min EPS beat(4)-9.46%
Max EPS beat(4)-0.45%
EPS beat(8)2
Avg EPS beat(8)-2.47%
EPS beat(12)5
Avg EPS beat(12)-3.15%
EPS beat(16)7
Avg EPS beat(16)-2.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)6.71%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)7
Avg Revenue beat(12)1.27%
Revenue beat(16)9
Avg Revenue beat(16)1.26%
PT rev (1m)2%
PT rev (3m)30.11%
EPS NQ rev (1m)4.37%
EPS NQ rev (3m)8.4%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.75 | ||
| P/S | 6.74 | ||
| P/FCF | 18.9 | ||
| P/OCF | 13.56 | ||
| P/B | 3.2 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)26.39
EY5.66%
EPS(NY)29.62
Fwd EY6.35%
FCF(TTM)24.68
FCFY5.29%
OCF(TTM)34.41
OCFY7.38%
SpS69.17
BVpS145.7
TBVpS143.12
PEG (NY)1.25
PEG (5Y)1.05
Graham Number294.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.3% | ||
| ROE | 19.3% | ||
| ROCE | 22.37% | ||
| ROIC | 17.33% | ||
| ROICexc | 29.21% | ||
| ROICexgc | 30.07% | ||
| OM | 48.65% | ||
| PM (TTM) | 40.65% | ||
| GM | 88.59% | ||
| FCFM | 35.69% |
ROA(3y)14%
ROA(5y)12.47%
ROE(3y)16.72%
ROE(5y)15.47%
ROIC(3y)14.96%
ROIC(5y)13.31%
ROICexc(3y)29.18%
ROICexc(5y)24.89%
ROICexgc(3y)30.03%
ROICexgc(5y)25.71%
ROCE(3y)19.31%
ROCE(5y)17.18%
ROICexgc growth 3Y23.22%
ROICexgc growth 5Y4.92%
ROICexc growth 3Y22.46%
ROICexc growth 5Y5.97%
OM growth 3Y7.2%
OM growth 5Y2.85%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y-0.58%
F-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 533.09% | ||
| Cap/Sales | 14.06% | ||
| Interest Coverage | 81.39 | ||
| Cash Conversion | 96.99% | ||
| Profit Quality | 87.79% | ||
| Current Ratio | 6.4 | ||
| Quick Ratio | 6.07 | ||
| Altman-Z | 19.64 |
F-Score8
WACC8.72%
ROIC/WACC1.99
Cap/Depr(3y)347.88%
Cap/Depr(5y)280.91%
Cap/Sales(3y)8.54%
Cap/Sales(5y)7.36%
Profit Quality(3y)85.86%
Profit Quality(5y)98.64%
High Growth Momentum
Growth
EPS 1Y (TTM)15.9%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%12.05%
EPS Next Y14.15%
EPS Next 2Y9.73%
EPS Next 3Y7.6%
EPS Next 5Y11.57%
Revenue 1Y (TTM)13.5%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%6.76%
Revenue Next Year11.56%
Revenue Next 2Y8.55%
Revenue Next 3Y8.2%
Revenue Next 5Y11.21%
EBIT growth 1Y12.9%
EBIT growth 3Y28.12%
EBIT growth 5Y17.97%
EBIT Next Year18.1%
EBIT Next 3Y5.05%
EBIT Next 5Y-4.6%
FCF growth 1Y46.07%
FCF growth 3Y31.3%
FCF growth 5YN/A
OCF growth 1Y62.87%
OCF growth 3Y30.42%
OCF growth 5YN/A
UNITED THERAPEUTICS CORP / UTHR FAQ
What is the fundamental rating for UTHR stock?
ChartMill assigns a fundamental rating of 7 / 10 to UTHR.
Can you provide the valuation status for UNITED THERAPEUTICS CORP?
ChartMill assigns a valuation rating of 7 / 10 to UNITED THERAPEUTICS CORP (UTHR). This can be considered as Undervalued.
What is the profitability of UTHR stock?
UNITED THERAPEUTICS CORP (UTHR) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for UTHR stock?
The Price/Earnings (PE) ratio for UNITED THERAPEUTICS CORP (UTHR) is 17.67 and the Price/Book (PB) ratio is 3.2.
What is the financial health of UNITED THERAPEUTICS CORP (UTHR) stock?
The financial health rating of UNITED THERAPEUTICS CORP (UTHR) is 9 / 10.