UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - New York Stock Exchange, Inc. - US9139031002 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UHS. UHS was compared to 102 industry peers in the Health Care Providers & Services industry. While UHS has a great profitability rating, there are some minor concerns on its financial health. UHS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
UHS had positive earnings in the past year.
In the past year UHS had a positive cash flow from operations.
Each year in the past 5 years UHS has been profitable.
UHS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UHS (8.05%) is better than 93.14% of its industry peers.
With an excellent Return On Equity value of 17.64%, UHS belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
UHS has a Return On Invested Capital of 10.74%. This is amongst the best in the industry. UHS outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UHS is in line with the industry average of 9.53%.
The 3 year average ROIC (8.28%) for UHS is below the current ROIC(10.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.64% | ||
| ROIC | 10.74% |
ROA(3y)6.01%
ROA(5y)6.51%
ROE(3y)13.4%
ROE(5y)14.27%
ROIC(3y)8.28%
ROIC(5y)8.76%
1.3 Margins
With an excellent Profit Margin value of 7.44%, UHS belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
UHS's Profit Margin has been stable in the last couple of years.
The Operating Margin of UHS (10.87%) is better than 83.33% of its industry peers.
UHS's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.87% | ||
| PM (TTM) | 7.44% | ||
| GM | N/A |
OM growth 3Y-0.49%
OM growth 5Y-0.12%
PM growth 3Y-2.68%
PM growth 5Y0.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UHS is still creating some value.
UHS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UHS has been reduced compared to 5 years ago.
Compared to 1 year ago, UHS has an improved debt to assets ratio.
2.2 Solvency
UHS has a debt to FCF ratio of 4.40. This is a neutral value as UHS would need 4.40 years to pay back of all of its debts.
UHS has a better Debt to FCF ratio (4.40) than 69.61% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that UHS is somewhat dependend on debt financing.
UHS's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. UHS outperforms 51.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC7.52%
2.3 Liquidity
UHS has a Current Ratio of 1.32. This is a normal value and indicates that UHS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.32, UHS is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
A Quick Ratio of 1.23 indicates that UHS should not have too much problems paying its short term obligations.
The Quick ratio of UHS (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
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%.
UHS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.82% yearly.
EPS 1Y (TTM)49.29%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%30.81%
Revenue 1Y (TTM)9.73%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%6.66%
3.2 Future
Based on estimates for the next years, UHS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.23% on average per year.
UHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.49% yearly.
EPS Next Y19.44%
EPS Next 2Y14.07%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue Next Year9.04%
Revenue Next 2Y7.23%
Revenue Next 3Y6.49%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.01, the valuation of UHS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 90.20% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (26.60), we can say UHS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.04 indicates a reasonable valuation of UHS.
Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 89.22% of the companies in the same industry.
UHS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaper than 85.29% of the companies in the same industry.
82.35% of the companies in the same industry are more expensive than UHS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 7.42 |
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 decent profitability rating of UHS may justify a higher PE ratio.
A more expensive valuation may be justified as UHS's earnings are expected to grow with 13.23% in the coming years.
PEG (NY)0.57
PEG (5Y)1.02
EPS Next 2Y14.07%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, UHS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.46, UHS pays a better dividend. On top of this UHS pays more dividend than 80.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UHS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of UHS is nicely growing with an annual growth rate of 6.27%!
UHS has paid a dividend for at least 10 years, which is a reliable track record.
UHS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.27%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UHS pays out 4.45% of its income as dividend. This is a sustainable payout ratio.
UHS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.45%
EPS Next 2Y14.07%
EPS Next 3Y13.23%
195.73
-1.09 (-0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.91%
Inst Owner Change-0.6%
Ins Owners4.24%
Ins Owner Change15.16%
Market Cap12.76B
Analysts72
Price Target227.81 (16.39%)
Short Float %4.61%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.81
Dividend Growth(5Y)6.27%
DP4.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.4%
Min EPS beat(2)10.15%
Max EPS beat(2)16.65%
EPS beat(4)4
Avg EPS beat(4)14.33%
Min EPS beat(4)0.53%
Max EPS beat(4)29.99%
EPS beat(8)8
Avg EPS beat(8)11.31%
EPS beat(12)11
Avg EPS beat(12)7.77%
EPS beat(16)13
Avg EPS beat(16)7.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.57%
Revenue beat(4)3
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)1.57%
Revenue beat(8)6
Avg Revenue beat(8)0.12%
Revenue beat(12)9
Avg Revenue beat(12)0.16%
Revenue beat(16)13
Avg Revenue beat(16)0.77%
PT rev (1m)-2.16%
PT rev (3m)-4.45%
EPS NQ rev (1m)1%
EPS NQ rev (3m)7%
EPS NY rev (1m)2.23%
EPS NY rev (3m)8.36%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.04 | ||
| P/S | 0.79 | ||
| P/FCF | 12.08 | ||
| P/OCF | 6.28 | ||
| P/B | 1.88 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)17.78
EY9.08%
EPS(NY)21.65
Fwd EY11.06%
FCF(TTM)16.2
FCFY8.28%
OCF(TTM)31.15
OCFY15.91%
SpS246.69
BVpS104.07
TBVpS43.52
PEG (NY)0.57
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.05% | ||
| ROE | 17.64% | ||
| ROCE | 13.93% | ||
| ROIC | 10.74% | ||
| ROICexc | 10.85% | ||
| ROICexgc | 15.9% | ||
| OM | 10.87% | ||
| PM (TTM) | 7.44% | ||
| GM | N/A | ||
| FCFM | 6.57% |
ROA(3y)6.01%
ROA(5y)6.51%
ROE(3y)13.4%
ROE(5y)14.27%
ROIC(3y)8.28%
ROIC(5y)8.76%
ROICexc(3y)8.36%
ROICexc(5y)9.07%
ROICexgc(3y)12.5%
ROICexgc(5y)14.04%
ROCE(3y)10.74%
ROCE(5y)11.37%
ROICexcg growth 3Y1.9%
ROICexcg growth 5Y0.81%
ROICexc growth 3Y3.79%
ROICexc growth 5Y2.74%
OM growth 3Y-0.49%
OM growth 5Y-0.12%
PM growth 3Y-2.68%
PM growth 5Y0.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.4 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 164.53% | ||
| Cap/Sales | 6.06% | ||
| Interest Coverage | 11.82 | ||
| Cash Conversion | 86.78% | ||
| Profit Quality | 88.26% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | N/A |
F-Score8
WACC7.52%
ROIC/WACC1.43
Cap/Depr(3y)139.45%
Cap/Depr(5y)144.53%
Cap/Sales(3y)5.55%
Cap/Sales(5y)5.95%
Profit Quality(3y)70.11%
Profit Quality(5y)77.19%
High Growth Momentum
Growth
EPS 1Y (TTM)49.29%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%30.81%
EPS Next Y19.44%
EPS Next 2Y14.07%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)9.73%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%6.66%
Revenue Next Year9.04%
Revenue Next 2Y7.23%
Revenue Next 3Y6.49%
Revenue Next 5YN/A
EBIT growth 1Y35.97%
EBIT growth 3Y7.25%
EBIT growth 5Y6.7%
EBIT Next Year51.47%
EBIT Next 3Y20.08%
EBIT Next 5YN/A
FCF growth 1Y662.27%
FCF growth 3Y242.18%
FCF growth 5Y7.48%
OCF growth 1Y141.37%
OCF growth 3Y32.75%
OCF growth 5Y7.52%