UNIVERSAL HEALTH SERVICES-B (UHS) Stock Fundamental Analysis
NYSE:UHS - New York Stock Exchange, Inc. - US9139031002 - Common Stock - Currency: USD
Overall UHS gets a fundamental rating of 6 out of 10. We evaluated UHS 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make UHS suitable 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
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.
With an excellent Return On Equity value of 17.64%, UHS belongs to the best of the industry, outperforming 85.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.74%, UHS belongs to the top of the industry, outperforming 83.50% 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 9.55%.
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
UHS has a Profit Margin of 7.44%. This is amongst the best in the industry. UHS outperforms 87.38% of its industry peers.
UHS's Profit Margin has been stable in the last couple of years.
The Operating Margin of UHS (10.87%) is better than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UHS is creating some value.
The number of shares outstanding for UHS has been reduced compared to 1 year ago.
UHS has less shares outstanding than it did 5 years ago.
UHS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.95 indicates that UHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
UHS's Altman-Z score of 2.95 is fine compared to the rest of the industry. UHS outperforms 64.08% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.40, UHS is doing good in the industry, outperforming 71.84% of the companies in the same industry.
UHS has a Debt/Equity ratio of 0.68. This is a neutral value indicating UHS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, UHS perfoms like the industry average, outperforming 51.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.4 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.36
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.32 indicates that UHS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, UHS is in line with its industry, 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's Quick ratio of 1.23 is in line compared to the rest of the industry. UHS outperforms 44.66% 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 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 10.82%.
Measured over the past years, UHS shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
EPS 1Y (TTM)37.47%
EPS 3Y12.08%
EPS 5Y10.74%
EPS Q2Q%24.13%
Revenue 1Y (TTM)10.82%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%9.63%
3.2 Future
UHS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
UHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y19.45%
EPS Next 2Y14.22%
EPS Next 3Y13.31%
EPS Next 5Y10.77%
Revenue Next Year9%
Revenue Next 2Y7.12%
Revenue Next 3Y6.52%
Revenue Next 5Y4.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.75, the valuation of UHS can be described as very reasonable.
Based on the Price/Earnings ratio, UHS is valued cheaply inside the industry as 90.29% of the companies are valued more expensively.
UHS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 7.59, the valuation of UHS can be described as very cheap.
Based on the Price/Forward Earnings ratio, UHS is valued cheaper than 89.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UHS to the average of the S&P500 Index (36.42), we can say UHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UHS is valued cheaply inside the industry as 84.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UHS indicates a rather cheap valuation: UHS is cheaper than 84.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
UHS's 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.
UHS's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)0.81
EPS Next 2Y14.22%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
UHS has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 2.98, UHS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.49, UHS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
4.45% of the earnings are spent on dividend by UHS. This is a low number and sustainable payout ratio.
UHS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.45%
EPS Next 2Y14.22%
EPS Next 3Y13.31%
164.7
+0.02 (+0.01%)
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 Change1.34%
Ins Owners4.77%
Ins Owner Change13.41%
Market Cap10.61B
Analysts70
Price Target228.49 (38.73%)
Short Float %3.98%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-0.09%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 7.59 | ||
| P/S | 0.66 | ||
| P/FCF | 10.05 | ||
| P/OCF | 5.23 | ||
| P/B | 1.56 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)18.82
EY11.43%
EPS(NY)21.71
Fwd EY13.18%
FCF(TTM)16.39
FCFY9.95%
OCF(TTM)31.51
OCFY19.13%
SpS249.6
BVpS105.3
TBVpS44.03
PEG (NY)0.45
PEG (5Y)0.81
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 | 2.95 |
F-Score8
WACC7.92%
ROIC/WACC1.36
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 Y19.45%
EPS Next 2Y14.22%
EPS Next 3Y13.31%
EPS Next 5Y10.77%
Revenue 1Y (TTM)10.82%
Revenue growth 3Y7.78%
Revenue growth 5Y6.82%
Sales Q2Q%9.63%
Revenue Next Year9%
Revenue Next 2Y7.12%
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%