UNIVERSAL HEALTH RLTY INCOME (UHT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UHT - US91359E1055 - REIT
38.99 USD
-0.38 (-0.97%)
38.99 USD
0 (0%)
Overall UHT gets a fundamental rating of 5 out of 10. We evaluated UHT against 125 industry peers in the Diversified REITs industry. While UHT belongs to the best of the industry regarding profitability, there are concerns on its financial health. UHT has a correct valuation and a medium growth rate. Finally UHT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year UHT was profitable.
- In the past year UHT had a positive cash flow from operations.
- UHT had positive earnings in each of the past 5 years.
- Each year in the past 5 years UHT had a positive operating cash flow.
1.2 Ratios
- UHT's Return On Assets of 3.16% is fine compared to the rest of the industry. UHT outperforms 73.60% of its industry peers.
- UHT has a Return On Equity of 11.32%. This is amongst the best in the industry. UHT outperforms 90.40% of its industry peers.
- UHT's Return On Invested Capital of 5.15% is amongst the best of the industry. UHT outperforms 94.40% of its industry peers.
- UHT had an Average Return On Invested Capital over the past 3 years of 4.57%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (5.15%) for UHT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 11.32% | ||
| ROIC | 5.15% |
ROA(3y)3.12%
ROA(5y)6.31%
ROE(3y)9.2%
ROE(5y)17.24%
ROIC(3y)4.57%
ROIC(5y)4.42%
1.3 Margins
- UHT has a Profit Margin of 18.06%. This is in the better half of the industry: UHT outperforms 65.60% of its industry peers.
- UHT's Profit Margin has declined in the last couple of years.
- UHT's Operating Margin of 35.77% is fine compared to the rest of the industry. UHT outperforms 75.20% of its industry peers.
- UHT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 70.08%, UHT is in line with its industry, outperforming 59.20% of the companies in the same industry.
- UHT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.77% | ||
| PM (TTM) | 18.06% | ||
| GM | 70.08% |
OM growth 3Y2.67%
OM growth 5Y2.18%
PM growth 3Y-46.89%
PM growth 5Y-4.59%
GM growth 3Y-0.77%
GM growth 5Y-0.44%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UHT is destroying value.
- Compared to 1 year ago, UHT has about the same amount of shares outstanding.
- UHT has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, UHT has a worse debt to assets ratio.
2.2 Solvency
- UHT has an Altman-Z score of 0.90. This is a bad value and indicates that UHT is not financially healthy and even has some risk of bankruptcy.
- UHT has a better Altman-Z score (0.90) than 71.20% of its industry peers.
- UHT has a debt to FCF ratio of 9.39. This is a negative value and a sign of low solvency as UHT would need 9.39 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 9.39, UHT belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
- UHT has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of UHT (2.37) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 9.39 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.75
WACC6.88%
2.3 Liquidity
- UHT has a Current Ratio of 0.98. This is a bad value and indicates that UHT is not financially healthy enough and could expect problems in meeting its short term obligations.
- UHT has a Current ratio (0.98) which is in line with its industry peers.
- A Quick Ratio of 0.98 indicates that UHT may have some problems paying its short term obligations.
- UHT has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- UHT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.39%.
- The Earnings Per Share has been growing slightly by 0.14% on average over the past years.
- Looking at the last year, UHT shows a small growth in Revenue. The Revenue has grown by 0.68% in the last year.
- UHT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)-1.39%
EPS 3Y-44.02%
EPS 5Y0.14%
EPS Q2Q%0.31%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y5.55%
Revenue growth 5Y5.11%
Sales Q2Q%3.3%
3.2 Future
- UHT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.77% yearly.
- UHT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.32% yearly.
EPS Next Y14.82%
EPS Next 2Y12.13%
EPS Next 3Y9.77%
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y2%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
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 accelerating.
- 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
- The Price/Earnings ratio is 29.99, which means the current valuation is very expensive for UHT.
- Based on the Price/Earnings ratio, UHT is valued a bit cheaper than 64.00% of the companies in the same industry.
- UHT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 22.31, the valuation of UHT can be described as rather expensive.
- UHT's Price/Forward Earnings ratio is rather cheap when compared to the industry. UHT is cheaper than 90.40% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, UHT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.99 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UHT is on the same level as its industry peers.
- 85.60% of the companies in the same industry are more expensive than UHT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of UHT may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)211.77
EPS Next 2Y12.13%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.44%, UHT is a good candidate for dividend investing.
- UHT's Dividend Yield is a higher than the industry average which is at 6.59.
- UHT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
5.2 History
- The dividend of UHT has a limited annual growth rate of 1.42%.
- UHT has paid a dividend for at least 10 years, which is a reliable track record.
- UHT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.42%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 227.72% of the earnings are spent on dividend by UHT. This is not a sustainable payout ratio.
- UHT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP227.72%
EPS Next 2Y12.13%
EPS Next 3Y9.77%
UNIVERSAL HEALTH RLTY INCOME / UHT FAQ
What is the ChartMill fundamental rating of UNIVERSAL HEALTH RLTY INCOME (UHT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to UHT.
What is the valuation status of UNIVERSAL HEALTH RLTY INCOME (UHT) stock?
ChartMill assigns a valuation rating of 4 / 10 to UNIVERSAL HEALTH RLTY INCOME (UHT). This can be considered as Fairly Valued.
How profitable is UNIVERSAL HEALTH RLTY INCOME (UHT) stock?
UNIVERSAL HEALTH RLTY INCOME (UHT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of UNIVERSAL HEALTH RLTY INCOME (UHT) stock?
The Price/Earnings (PE) ratio for UNIVERSAL HEALTH RLTY INCOME (UHT) is 29.99 and the Price/Book (PB) ratio is 3.41.
What is the earnings growth outlook for UNIVERSAL HEALTH RLTY INCOME?
The Earnings per Share (EPS) of UNIVERSAL HEALTH RLTY INCOME (UHT) is expected to grow by 14.82% in the next year.