UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - New York Stock Exchange, Inc. - US9139031002 - Common Stock - Currency: USD
UHS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. UHS scores excellent on profitability, but there are some minor concerns on its financial health. UHS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make UHS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
UHS had positive earnings in the past year.
UHS had a positive operating cash flow in the past year.
UHS had positive earnings in each of the past 5 years.
UHS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.05%, UHS belongs to the top of the industry, outperforming 91.26% of the companies in the same industry.
The Return On Equity of UHS (17.64%) is better than 85.44% of its industry peers.
UHS's Return On Invested Capital of 10.74% is amongst the best of the industry. UHS outperforms 83.50% of its industry peers.
UHS had an Average Return On Invested Capital over the past 3 years of 8.28%. This is in line with the industry average of 9.71%.
The last Return On Invested Capital (10.74%) for UHS is above the 3 year average (8.28%), which is a sign of increasing profitability.
| 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 87.38% of the companies in the same industry.
In the last couple of years the Profit Margin of UHS has remained more or less at the same level.
UHS has a Operating Margin of 10.87%. This is amongst the best in the industry. UHS outperforms 82.52% 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
UHS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UHS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UHS has less shares outstanding
Compared to 1 year ago, UHS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.05 indicates that UHS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.05, UHS is in the better half of the industry, outperforming 64.08% of the companies in the same industry.
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 70.87% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that UHS is somewhat dependend on debt financing.
UHS has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.39
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.32 indicates that UHS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, UHS perfoms like the industry average, outperforming 40.78% of the companies in the same industry.
UHS has a Quick Ratio of 1.23. This is a normal value and indicates that UHS is financially healthy and should not expect problems in meeting its short term obligations.
UHS has a Quick ratio of 1.23. This is comparable to the rest of the industry: UHS outperforms 43.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.29% over the past year.
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.
The Revenue has grown by 9.73% in the past year. This is quite good.
The Revenue has been growing slightly by 6.82% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
UHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y19.53%
EPS Next 2Y14.31%
EPS Next 3Y13.28%
EPS Next 5Y10.77%
Revenue Next Year8.97%
Revenue Next 2Y7.29%
Revenue Next 3Y6.52%
Revenue Next 5Y4.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 10.38, the valuation of UHS can be described as reasonable.
UHS's Price/Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 90.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of UHS to the average of the S&P500 Index (27.45), we can say UHS is valued rather cheaply.
UHS is valuated reasonably with a Price/Forward Earnings ratio of 8.49.
UHS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UHS is cheaper than 91.26% of the companies in the same industry.
UHS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaper than 83.50% of the companies in the same industry.
84.47% 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 | 11.26 | ||
| EV/EBITDA | 7.01 |
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.
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 13.28% in the coming years.
PEG (NY)0.53
PEG (5Y)0.97
EPS Next 2Y14.31%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, UHS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.37, UHS pays a better dividend. On top of this UHS pays more dividend than 80.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, UHS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
On average, the dividend of UHS grows each year by 6.27%, which is quite nice.
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 Years4
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 2Y14.31%
EPS Next 3Y13.28%
184.53
+0.06 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.38%
Inst Owner Change-0.68%
Ins Owners4.77%
Ins Owner Change13.41%
Market Cap11.89B
Analysts71.54
Price Target228.15 (23.64%)
Short Float %4%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.81
Dividend Growth(5Y)6.27%
DP4.45%
Div Incr Years0
Div Non Decr Years4
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)0.15%
PT rev (3m)-2.53%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 8.49 | ||
| P/S | 0.74 | ||
| P/FCF | 11.26 | ||
| P/OCF | 5.86 | ||
| P/B | 1.75 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)17.78
EY9.64%
EPS(NY)21.74
Fwd EY11.78%
FCF(TTM)16.39
FCFY8.88%
OCF(TTM)31.51
OCFY17.08%
SpS249.6
BVpS105.3
TBVpS44.03
PEG (NY)0.53
PEG (5Y)0.97
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 | 3.05 |
F-Score8
WACC7.72%
ROIC/WACC1.39
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 Y19.53%
EPS Next 2Y14.31%
EPS Next 3Y13.28%
EPS Next 5Y10.77%
Revenue 1Y (TTM)9.73%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%6.66%
Revenue Next Year8.97%
Revenue Next 2Y7.29%
Revenue Next 3Y6.52%
Revenue Next 5Y4.61%
EBIT growth 1Y35.97%
EBIT growth 3Y7.25%
EBIT growth 5Y6.7%
EBIT Next Year52.15%
EBIT Next 3Y19.41%
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%