UNITED THERAPEUTICS CORP (UTHR)
US91307C1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to UTHR. UTHR was compared to 571 industry peers in the Biotechnology industry. UTHR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on UTHR. These ratings would make UTHR suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year UTHR was profitable.
In the past year UTHR had a positive cash flow from operations.
Of the past 5 years UTHR 4 years were profitable.
UTHR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of UTHR (15.60%) is better than 98.24% of its industry peers.
The Return On Equity of UTHR (18.21%) is better than 97.53% of its industry peers.
UTHR has a Return On Invested Capital of 16.59%. This is amongst the best in the industry. UTHR outperforms 97.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UTHR is in line with the industry average of 13.56%.
The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(16.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.6% | ||
| ROE | 18.21% | ||
| ROIC | 16.59% |
ROA(3y)11.66%
ROA(5y)8.69%
ROE(3y)14.55%
ROE(5y)11.01%
ROIC(3y)12.87%
ROIC(5y)12.67%
1.3 Margins
With an excellent Profit Margin value of 40.31%, UTHR belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
In the last couple of years the Profit Margin of UTHR has grown nicely.
UTHR's Operating Margin of 48.91% is amongst the best of the industry. UTHR outperforms 99.65% of its industry peers.
UTHR's Operating Margin has been stable in the last couple of years.
UTHR has a better Gross Margin (88.94%) than 91.89% of its industry peers.
UTHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.91% | ||
| PM (TTM) | 40.31% | ||
| GM | 88.94% |
OM growth 3Y8.46%
OM growth 5Y0.63%
PM growth 3Y6.83%
PM growth 5Y3.17%
GM growth 3Y-1.38%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UTHR is still creating some value.
Compared to 1 year ago, UTHR has more shares outstanding
UTHR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UTHR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.67 indicates that UTHR is not in any danger for bankruptcy at the moment.
UTHR has a better Altman-Z score (12.67) than 88.01% 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 | 0.45 | ||
| Altman-Z | 12.67 |
ROIC/WACC1.58
WACC10.49%
2.3 Liquidity
UTHR has a Current Ratio of 4.58. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of UTHR (4.58) is comparable to the rest of the industry.
A Quick Ratio of 4.41 indicates that UTHR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.41, UTHR is in line with its industry, outperforming 51.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.58 | ||
| Quick Ratio | 4.41 |
3. Growth
3.1 Past
UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.45%, which is quite impressive.
Measured over the past years, UTHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.08% on average per year.
UTHR shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.04%.
Measured over the past years, UTHR shows a small growth in Revenue. The Revenue has been growing by 7.41% on average per year.
EPS 1Y (TTM)25.45%
EPS 3Y19.66%
EPS 5Y8.08%
EPS Q2Q%18.77%
Revenue 1Y (TTM)25.04%
Revenue growth 3Y16.2%
Revenue growth 5Y7.41%
Sales Q2Q%22.89%
3.2 Future
The Earnings Per Share is expected to grow by 6.83% on average over the next years.
Based on estimates for the next years, UTHR will show a quite strong growth in Revenue. The Revenue will grow by 9.04% on average per year.
EPS Next Y25.97%
EPS Next 2Y19.72%
EPS Next 3Y12.82%
EPS Next 5Y6.83%
Revenue Next Year25.8%
Revenue Next 2Y17.84%
Revenue Next 3Y13.9%
Revenue Next 5Y9.04%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.38, UTHR is valued correctly.
UTHR's Price/Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 97.00% of the companies in the same industry.
UTHR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.29.
With a Price/Forward Earnings ratio of 13.11, UTHR is valued correctly.
Based on the Price/Forward Earnings ratio, UTHR is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
UTHR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTHR is valued cheaply inside the industry as 98.24% of the companies are valued more expensively.
96.65% of the companies in the same industry are more expensive than UTHR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.53 | ||
| EV/EBITDA | 8.45 |
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 excellent profitability rating of UTHR may justify a higher PE ratio.
A more expensive valuation may be justified as UTHR's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)0.63
PEG (5Y)2.03
EPS Next 2Y19.72%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
UTHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITED THERAPEUTICS CORP
NASDAQ:UTHR (11/22/2024, 8:10:59 PM)
After market: 372.89 0 (0%)372.89
+5.53 (+1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 13.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.63
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.6% | ||
| ROE | 18.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 48.91% | ||
| PM (TTM) | 40.31% | ||
| GM | 88.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.58 | ||
| Quick Ratio | 4.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.45%
EPS 3Y19.66%
EPS 5Y
EPS Q2Q%
EPS Next Y25.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.04%
Revenue growth 3Y16.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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