UNITED THERAPEUTICS CORP (UTHR) Stock Fundamental Analysis
NASDAQ:UTHR - Nasdaq - US91307C1027 - Common Stock - Currency: USD
Overall UTHR gets a fundamental rating of 7 out of 10. We evaluated UTHR against 557 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make UTHR suitable 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.
UTHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UTHR has a better Return On Assets (15.63%) than 96.23% of its industry peers.
Looking at the Return On Equity, with a value of 17.79%, UTHR belongs to the top of the industry, outperforming 96.05% of the companies in the same industry.
UTHR has a better Return On Invested Capital (16.27%) than 96.95% 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 14.78%.
The last Return On Invested Capital (16.27%) for UTHR is above the 3 year average (14.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.63% | ||
| ROE | 17.79% | ||
| ROIC | 16.27% |
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
UTHR's Profit Margin of 40.44% is amongst the best of the industry. UTHR outperforms 98.56% of its industry peers.
In the last couple of years the Profit Margin of UTHR has grown nicely.
The Operating Margin of UTHR (49.25%) is better than 99.64% of its industry peers.
UTHR's Operating Margin has improved in the last couple of years.
UTHR has a Gross Margin of 89.00%. This is amongst the best in the industry. UTHR outperforms 91.56% of its industry peers.
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 | 49.25% | ||
| PM (TTM) | 40.44% | ||
| GM | 89% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UTHR is creating some value.
The number of shares outstanding for UTHR has been reduced compared to 1 year ago.
Compared to 5 years ago, UTHR has more shares outstanding
Compared to 1 year ago, UTHR has an improved debt to assets ratio.
2.2 Solvency
UTHR has an Altman-Z score of 11.38. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.38, UTHR belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
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 | 0.18 | ||
| Altman-Z | 11.38 |
ROIC/WACC1.67
WACC9.75%
2.3 Liquidity
A Current Ratio of 5.46 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a Current ratio (5.46) which is comparable to the rest of the industry.
UTHR has a Quick Ratio of 5.23. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
UTHR has a Quick ratio (5.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.46 | ||
| Quick Ratio | 5.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.49% 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 19.85% in the last year.
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)18.49%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%7.46%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%17.22%
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 10.77% on average per year.
UTHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y14.83%
EPS Next 2Y9.42%
EPS Next 3Y5.72%
EPS Next 5Y10.77%
Revenue Next Year12.18%
Revenue Next 2Y9.21%
Revenue Next 3Y7.29%
Revenue Next 5Y7.16%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UTHR is valuated reasonably with a Price/Earnings ratio of 11.75.
Compared to the rest of the industry, the Price/Earnings ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 96.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, UTHR is valued rather cheaply.
The Price/Forward Earnings ratio is 10.00, which indicates a very decent valuation of UTHR.
96.41% of the companies in the same industry are more expensive than UTHR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UTHR to the average of the S&P500 Index (21.76), we can say UTHR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10 |
4.2 Price Multiples
UTHR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UTHR is cheaper than 98.74% of the companies in the same industry.
96.23% 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 | 11.77 | ||
| EV/EBITDA | 5.63 |
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.
UTHR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.79
PEG (5Y)0.7
EPS Next 2Y9.42%
EPS Next 3Y5.72%
5. Dividend
5.1 Amount
UTHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
294.42
+4.03 (+1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners101.36%
Inst Owner Change-0.01%
Ins Owners1.75%
Ins Owner Change1.16%
Market Cap13.28B
Analysts79
Price Target392.46 (33.3%)
Short Float %3.65%
Short Ratio2.86
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)-2.14%
Min EPS beat(2)-3.83%
Max EPS beat(2)-0.45%
EPS beat(4)0
Avg EPS beat(4)-4.28%
Min EPS beat(4)-10.35%
Max EPS beat(4)-0.45%
EPS beat(8)4
Avg EPS beat(8)1.33%
EPS beat(12)6
Avg EPS beat(12)-3.77%
EPS beat(16)8
Avg EPS beat(16)-1.5%
Revenue beat(2)1
Avg Revenue beat(2)2.45%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)6.71%
Revenue beat(4)3
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)6.71%
Revenue beat(8)7
Avg Revenue beat(8)4.04%
Revenue beat(12)8
Avg Revenue beat(12)1.96%
Revenue beat(16)11
Avg Revenue beat(16)2.85%
PT rev (1m)-1.76%
PT rev (3m)-3.75%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)3.02%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)3.75%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10 | ||
| P/S | 4.44 | ||
| P/FCF | 11.77 | ||
| P/OCF | 9.41 | ||
| P/B | 1.95 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)25.06
EY8.51%
EPS(NY)29.45
Fwd EY10%
FCF(TTM)25.02
FCFY8.5%
OCF(TTM)31.3
OCFY10.63%
SpS66.37
BVpS150.9
TBVpS148.43
PEG (NY)0.79
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.63% | ||
| ROE | 17.79% | ||
| ROCE | 21% | ||
| ROIC | 16.27% | ||
| ROICexc | 30.87% | ||
| ROICexgc | 31.83% | ||
| OM | 49.25% | ||
| PM (TTM) | 40.44% | ||
| GM | 89% | ||
| FCFM | 37.69% |
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%
ROICexcg growth 3Y23.22%
ROICexcg 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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 366.37% | ||
| Cap/Sales | 9.46% | ||
| Interest Coverage | 44.68 | ||
| Cash Conversion | 90.97% | ||
| Profit Quality | 93.22% | ||
| Current Ratio | 5.46 | ||
| Quick Ratio | 5.23 | ||
| Altman-Z | 11.38 |
F-Score7
WACC9.75%
ROIC/WACC1.67
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)18.49%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%7.46%
EPS Next Y14.83%
EPS Next 2Y9.42%
EPS Next 3Y5.72%
EPS Next 5Y10.77%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%17.22%
Revenue Next Year12.18%
Revenue Next 2Y9.21%
Revenue Next 3Y7.29%
Revenue Next 5Y7.16%
EBIT growth 1Y16.99%
EBIT growth 3Y28.12%
EBIT growth 5Y17.97%
EBIT Next Year17.96%
EBIT Next 3Y3.92%
EBIT Next 5Y-4.6%
FCF growth 1Y56.32%
FCF growth 3Y31.3%
FCF growth 5YN/A
OCF growth 1Y58.88%
OCF growth 3Y30.42%
OCF growth 5YN/A