Don't overlook UNIVERSAL HEALTH SERVICES-B (NYSE:UHS)—it's a hidden gem with strong fundamentals and an attractive price tag.

Our stock screening tool has pinpointed UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) as an undervalued stock option. UHS retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Assessment of UHS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. UHS boasts a 9 out of 10:

• UHS is valuated reasonably with a Price/Earnings ratio of 10.05.
• 89.22% of the companies in the same industry are more expensive than UHS, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (28.22), we can say UHS is valued rather cheaply.
• A Price/Forward Earnings ratio of 8.33 indicates a reasonable valuation of UHS.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 93.14% of the companies listed in the same industry.
• UHS is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 82.35% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 85.29% of the companies listed in the same industry.
• UHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• UHS has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as UHS's earnings are expected to grow with 12.93% in the coming years.

Assessing Profitability for UHS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. UHS has earned a 7 out of 10:

• Looking at the Return On Assets, with a value of 8.05%, UHS belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
• The Return On Equity of UHS (17.64%) is better than 83.33% of its industry peers.
• With an excellent Return On Invested Capital value of 10.74%, UHS belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
• The 3 year average ROIC (8.28%) for UHS is below the current ROIC(10.74%), indicating increased profibility in the last year.
• UHS has a better Profit Margin (7.44%) than 84.31% of its industry peers.
• With an excellent Operating Margin value of 10.87%, UHS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.

Health Assessment of UHS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. UHS scores a 5 out of 10:

• UHS has a Debt to FCF ratio of 4.40. This is in the better half of the industry: UHS outperforms 69.61% of its industry peers.

Assessing Growth for UHS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. UHS has earned a 6 for growth:

• UHS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.29%, which is quite impressive.
• Measured over the past years, UHS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
• UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.73%.
• The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of UHS contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.