UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - US9139031002 - Common Stock
183.88 USD
-1.7 (-0.92%)
183.88 USD
0 (0%)
Taking everything into account, UHS scores 6 out of 10 in our fundamental rating. UHS was compared to 101 industry peers in the Health Care Providers & Services industry. UHS has an excellent profitability rating, but 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! With these ratings, UHS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year UHS was profitable.
UHS had a positive operating cash flow in the past year.
UHS had positive earnings in each of the past 5 years.
Each year in the past 5 years UHS had a positive operating cash flow.
1.2 Ratios
UHS has a Return On Assets of 8.41%. This is amongst the best in the industry. UHS outperforms 92.08% of its industry peers.
The Return On Equity of UHS (17.94%) is better than 86.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.02%, UHS belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
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 9.14%.
The 3 year average ROIC (8.28%) for UHS is below the current ROIC(11.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 17.94% | ||
| ROIC | 11.02% |
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
Looking at the Profit Margin, with a value of 7.66%, UHS belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
UHS's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 11.01%, UHS belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
In the last couple of years the Operating Margin of UHS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.01% | ||
| PM (TTM) | 7.66% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UHS is 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
An Altman-Z score of 3.09 indicates that UHS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.09, UHS is doing good in the industry, outperforming 63.37% of the companies in the same industry.
The Debt to FCF ratio of UHS is 5.08, which is a neutral value as it means it would take UHS, 5.08 years of fcf income to pay off all of its debts.
UHS's Debt to FCF ratio of 5.08 is fine compared to the rest of the industry. UHS outperforms 70.30% of its industry peers.
UHS has a Debt/Equity ratio of 0.65. This is a neutral value indicating UHS is somewhat dependend on debt financing.
UHS has a Debt to Equity ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.42
WACC7.75%
2.3 Liquidity
UHS has a Current Ratio of 1.29. This is a normal value and indicates that UHS is financially healthy and should not expect problems in meeting its short term obligations.
UHS's Current ratio of 1.29 is in line compared to the rest of the industry. UHS outperforms 41.58% of its industry peers.
A Quick Ratio of 1.19 indicates that UHS should not have too much problems paying its short term obligations.
UHS has a Quick ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.47% over the past year.
UHS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.74% yearly.
UHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.61%.
The Revenue has been growing slightly by 6.82% on average over the past years.
EPS 1Y (TTM)37.47%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%24.13%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%9.63%
3.2 Future
The Earnings Per Share is expected to grow by 11.65% on average over the next years. This is quite good.
Based on estimates for the next years, UHS will show a small growth in Revenue. The Revenue will grow by 4.70% on average per year.
EPS Next Y24.6%
EPS Next 2Y15.2%
EPS Next 3Y13.49%
EPS Next 5Y11.65%
Revenue Next Year9.29%
Revenue Next 2Y7.07%
Revenue Next 3Y6.45%
Revenue Next 5Y4.7%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 9.77 indicates a reasonable valuation of UHS.
90.10% of the companies in the same industry are more expensive than UHS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, UHS is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.33, the valuation of UHS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 93.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaper than 87.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UHS is valued cheaply inside the industry as 82.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 6.75 |
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 13.49% in the coming years.
PEG (NY)0.4
PEG (5Y)0.91
EPS Next 2Y15.2%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 2.51, UHS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.43, UHS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of UHS is nicely growing with an annual growth rate of 6.27%!
UHS has been paying a dividend for at least 10 years, so it has 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 4.19% 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.
DP4.19%
EPS Next 2Y15.2%
EPS Next 3Y13.49%
183.88
-1.7 (-0.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change-1.18%
Ins Owners4.77%
Ins Owner Change25.86%
Market Cap11.70B
Analysts70
Price Target222.25 (20.87%)
Short Float %3.84%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.81
Dividend Growth(5Y)6.27%
DP4.19%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.89%
Min EPS beat(2)7.62%
Max EPS beat(2)10.15%
EPS beat(4)4
Avg EPS beat(4)8.74%
Min EPS beat(4)0.53%
Max EPS beat(4)16.65%
EPS beat(8)8
Avg EPS beat(8)11.9%
EPS beat(12)12
Avg EPS beat(12)9.02%
EPS beat(16)13
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)0.18%
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)0.11%
Revenue beat(12)9
Avg Revenue beat(12)0.14%
Revenue beat(16)13
Avg Revenue beat(16)0.46%
PT rev (1m)-2.73%
PT rev (3m)-2.44%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)9.3%
EPS NY rev (1m)4.31%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.71 | ||
| P/FCF | 12.98 | ||
| P/OCF | 6.16 | ||
| P/B | 1.66 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)18.82
EY10.23%
EPS(NY)22.08
Fwd EY12.01%
FCF(TTM)14.17
FCFY7.7%
OCF(TTM)29.86
OCFY16.24%
SpS258.65
BVpS110.47
TBVpS47.96
PEG (NY)0.4
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 17.94% | ||
| ROCE | 14.3% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.14% | ||
| ROICexgc | 16.33% | ||
| OM | 11.01% | ||
| PM (TTM) | 7.66% | ||
| GM | N/A | ||
| FCFM | 5.48% |
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-Score9
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 167.41% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 12.09 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 71.49% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 3.09 |
F-Score9
WACC7.75%
ROIC/WACC1.42
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)37.47%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%24.13%
EPS Next Y24.6%
EPS Next 2Y15.2%
EPS Next 3Y13.49%
EPS Next 5Y11.65%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%9.63%
Revenue Next Year9.29%
Revenue Next 2Y7.07%
Revenue Next 3Y6.45%
Revenue Next 5Y4.7%
EBIT growth 1Y25.67%
EBIT growth 3Y7.25%
EBIT growth 5Y6.7%
EBIT Next Year54.97%
EBIT Next 3Y19.45%
EBIT Next 5YN/A
FCF growth 1Y77.13%
FCF growth 3Y242.18%
FCF growth 5Y7.48%
OCF growth 1Y62.2%
OCF growth 3Y32.75%
OCF growth 5Y7.52%