NASDAQ:UTHR stands out as a stock that provides good value for the fundamentals it showcases.

UNITED THERAPEUTICS CORP (NASDAQ:UTHR) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:UTHR showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation for NASDAQ:UTHR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:UTHR, the assigned 9 reflects its valuation:

• UTHR is valuated reasonably with a Price/Earnings ratio of 11.82.
• 98.29% of the companies in the same industry are more expensive than UTHR, based on the Price/Earnings ratio.
• UTHR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.20.
• The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of UTHR.
• Based on the Price/Forward Earnings ratio, UTHR is valued cheaply inside the industry as 98.97% of the companies are valued more expensively.
• UTHR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
• 98.46% of the companies in the same industry are more expensive than UTHR, based on the Enterprise Value to EBITDA ratio.
• UTHR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UTHR is cheaper than 97.95% of the companies in the same industry.
• 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.

Understanding NASDAQ:UTHR's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:UTHR, the assigned 8 is noteworthy for profitability:

• UTHR has a better Return On Assets (13.74%) than 98.46% of its industry peers.
• UTHR has a better Return On Equity (16.46%) than 97.26% of its industry peers.
• UTHR has a better Return On Invested Capital (14.36%) than 97.77% of its industry peers.
• The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(14.36%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 42.31%, UTHR belongs to the best of the industry, outperforming 99.66% of the companies in the same industry.
• UTHR's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 51.06%, UTHR belongs to the top of the industry, outperforming 99.66% of the companies in the same industry.
• The Gross Margin of UTHR (88.94%) is better than 92.47% of its industry peers.

Exploring NASDAQ:UTHR's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:UTHR, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 8.11 indicates that UTHR is not in any danger for bankruptcy at the moment.
• UTHR's Altman-Z score of 8.11 is amongst the best of the industry. UTHR outperforms 84.76% of its industry peers.
• UTHR has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
• UTHR has a Debt to FCF ratio of 0.94. This is amongst the best in the industry. UTHR outperforms 96.06% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that UTHR is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for UTHR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• UTHR has a Current Ratio of 4.41. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 4.28 indicates that UTHR has no problem at all paying its short term obligations.

Assessing Growth for NASDAQ:UTHR

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. NASDAQ:UTHR has earned a 6 for growth:

• UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.09%, which is quite impressive.
• The Earnings Per Share has been growing by 8.08% on average over the past years. This is quite good.
• The Revenue has grown by 20.20% in the past year. This is a very strong growth!
• The Revenue is expected to grow by 9.54% on average over the next years. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of UTHR for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.