Overall UTHR gets a fundamental rating of 7 out of 10. We evaluated UTHR against 525 industry peers in the Biotechnology industry. UTHR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. UTHR has a decent growth rate and is not valued too expensively. These ratings could make UTHR a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years UTHR always reported a positive cash flow from operatings.

1.2 Ratios

UTHR has a better Return On Assets (17.30%) than 96.00% of its industry peers.
UTHR has a Return On Equity of 19.30%. This is amongst the best in the industry. UTHR outperforms 95.62% of its industry peers.
UTHR has a better Return On Invested Capital (17.33%) than 96.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UTHR is below the industry average of 18.07%.
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

The Profit Margin of UTHR (40.65%) is better than 97.14% of its industry peers.
In the last couple of years the Profit Margin of UTHR has grown nicely.
UTHR has a better Operating Margin (48.65%) than 99.62% of its industry peers.
In the last couple of years the Operating Margin of UTHR has grown nicely.
Looking at the Gross Margin, with a value of 88.59%, UTHR belongs to the top of the industry, outperforming 90.67% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UTHR is creating value.
Compared to 1 year ago, UTHR has less shares outstanding
UTHR has more shares outstanding than it did 5 years ago.
UTHR has a better debt/assets ratio than last year.

2.2 Solvency

UTHR has an Altman-Z score of 19.07. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
UTHR has a better Altman-Z score (19.07) than 88.19% of its industry peers.
UTHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	19.07

ROIC/WACC1.96

WACC8.82%

2.3 Liquidity

A Current Ratio of 6.40 indicates that UTHR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.40, UTHR is in the better half of the industry, outperforming 65.33% of the companies in the same industry.
A Quick Ratio of 6.07 indicates that UTHR has no problem at all paying its short term obligations.
The Quick ratio of UTHR (6.07) is better than 64.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.4
Quick Ratio	6.07

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.90% over the past year.
UTHR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.88% yearly.
Looking at the last year, UTHR shows a quite strong growth in Revenue. The Revenue has grown by 13.50% in the last year.
Measured over the past years, UTHR shows a quite strong growth in Revenue. The Revenue has been growing by 14.71% on average per year.

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

Based on estimates for the next years, UTHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.57% on average per year.
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 Y12.48%

EPS Next 2Y9.45%

EPS Next 3Y8.97%

EPS Next 5Y11.57%

Revenue Next Year11.46%

Revenue Next 2Y8.55%

Revenue Next 3Y9.27%

Revenue Next 5Y11.21%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.94, which indicates a rather expensive current valuation of UTHR.
Based on the Price/Earnings ratio, UTHR is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. UTHR is valued slightly cheaper when compared to this.
UTHR is valuated correctly with a Price/Forward Earnings ratio of 16.06.
Based on the Price/Forward Earnings ratio, UTHR is valued cheaper than 95.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UTHR to the average of the S&P500 Index (25.98), we can say UTHR is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.94
Fwd PE	16.06

4.2 Price Multiples

97.33% of the companies in the same industry are more expensive than UTHR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UTHR is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	18.26
EV/EBITDA	9.97

4.3 Compensation for Growth

UTHR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UTHR has an outstanding profitability rating, which may justify a higher PE ratio.