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NASDAQ:UTHR is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

By Mill Chart

Last update: May 15, 2024

Discover UNITED THERAPEUTICS CORP (NASDAQ:UTHR)—an undervalued stock our stock screener has picked out. NASDAQ:UTHR demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Assessment of NASDAQ:UTHR

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:UTHR has received a 8 out of 10:

  • 97.95% of the companies in the same industry are more expensive than UTHR, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (28.56), we can say UTHR is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.64, which indicates a very decent valuation of UTHR.
  • UTHR's Price/Forward Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 98.29% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.34, UTHR is valued a bit cheaper.
  • UTHR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UTHR is cheaper than 98.12% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of UTHR indicates a rather cheap valuation: UTHR is cheaper than 97.95% of the companies listed in the same industry.
  • 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.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:UTHR scores a 8 out of 10:

  • The Return On Assets of UTHR (16.17%) is better than 98.63% of its industry peers.
  • With an excellent Return On Equity value of 19.68%, UTHR belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
  • The Return On Invested Capital of UTHR (17.20%) is better than 98.29% of its industry peers.
  • The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(17.20%), indicating increased profibility in the last year.
  • The Profit Margin of UTHR (42.05%) is better than 99.66% of its industry peers.
  • UTHR's Profit Margin has improved in the last couple of years.
  • The Operating Margin of UTHR (50.45%) is better than 99.83% of its industry peers.
  • With an excellent Gross Margin value of 88.87%, UTHR belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.

Exploring NASDAQ:UTHR's Health

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

  • UTHR has an Altman-Z score of 8.91. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
  • UTHR has a better Altman-Z score (8.91) than 84.62% of its industry peers.
  • The Debt to FCF ratio of UTHR is 0.80, which is an excellent value as it means it would take UTHR, only 0.80 years of fcf income to pay off all of its debts.
  • UTHR's Debt to FCF ratio of 0.80 is amongst the best of the industry. UTHR outperforms 96.41% of its industry peers.
  • A Debt/Equity ratio of 0.04 indicates that UTHR is not too dependend on debt financing.
  • A Current Ratio of 3.77 indicates that UTHR has no problem at all paying its short term obligations.
  • A Quick Ratio of 3.64 indicates that UTHR has no problem at all paying its short term obligations.

Evaluating Growth: NASDAQ:UTHR

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:UTHR boasts a 6 out of 10:

  • The Earnings Per Share has grown by an impressive 42.42% 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 8.08% yearly.
  • The Revenue has grown by 26.09% in the past year. This is a very strong growth!
  • Based on estimates for the next years, UTHR will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.

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

For an up to date full fundamental analysis you can check the fundamental report of UTHR

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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UNITED THERAPEUTICS CORP

NASDAQ:UTHR (5/30/2024, 8:45:36 AM)

268.58

+0.86 (+0.32%)

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