UNITED THERAPEUTICS CORP (UTHR)
US91307C1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to UTHR. UTHR was compared to 588 industry peers in the Biotechnology industry. UTHR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. UTHR is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make UTHR suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year UTHR was profitable.
In the past year UTHR had a positive cash flow from operations.
UTHR had positive earnings in 4 of the past 5 years.
Of the past 5 years UTHR 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.74%, UTHR belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
With an excellent Return On Equity value of 16.46%, UTHR belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
UTHR's Return On Invested Capital of 14.36% is amongst the best of the industry. UTHR outperforms 97.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UTHR is in line with the industry average of 13.60%.
The 3 year average ROIC (12.87%) for UTHR is below the current ROIC(14.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.74% | ||
| ROE | 16.46% | ||
| ROIC | 14.36% |
ROA(3y)11.66%
ROA(5y)8.69%
ROE(3y)14.55%
ROE(5y)11.01%
ROIC(3y)12.87%
ROIC(5y)12.67%
1.3 Margins
UTHR has a Profit Margin of 42.31%. This is amongst the best in the industry. UTHR outperforms 99.66% of its industry peers.
UTHR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 51.06%, UTHR belongs to the best of the industry, outperforming 99.66% of the companies in the same industry.
UTHR's Operating Margin has been stable in the last couple of years.
UTHR's Gross Margin of 88.94% is amongst the best of the industry. UTHR outperforms 92.47% of its industry peers.
In the last couple of years the Gross Margin of UTHR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.06% | ||
| PM (TTM) | 42.31% | ||
| GM | 88.94% |
OM growth 3Y8.46%
OM growth 5Y0.63%
PM growth 3Y6.83%
PM growth 5Y3.17%
GM growth 3Y-1.38%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UTHR is still creating some value.
UTHR has more shares outstanding than it did 1 year ago.
UTHR has more shares outstanding than it did 5 years ago.
UTHR has a better debt/assets ratio than last year.
2.2 Solvency
UTHR has an Altman-Z score of 8.09. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
UTHR's Altman-Z score of 8.09 is amongst the best of the industry. UTHR outperforms 85.96% of its industry peers.
UTHR has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.94, UTHR belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that UTHR is not too dependend on debt financing.
The Debt to Equity ratio of UTHR (0.05) is worse than 60.79% of its industry peers.
Even though the debt/equity ratio score it not favorable for UTHR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 8.09 |
ROIC/WACC1.58
WACC9.11%
2.3 Liquidity
A Current Ratio of 4.41 indicates that UTHR has no problem at all paying its short term obligations.
With a Current ratio value of 4.41, UTHR perfoms like the industry average, outperforming 49.14% of the companies in the same industry.
A Quick Ratio of 4.28 indicates that UTHR has no problem at all paying its short term obligations.
UTHR's Quick ratio of 4.28 is in line compared to the rest of the industry. UTHR outperforms 49.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.28 |
3. Growth
3.1 Past
UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.09%, which is quite impressive.
Measured over the past years, UTHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.08% on average per year.
Looking at the last year, UTHR shows a very strong growth in Revenue. The Revenue has grown by 20.20%.
UTHR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.41% yearly.
EPS 1Y (TTM)32.09%
EPS 3Y19.66%
EPS 5Y8.08%
EPS growth Q2Q63.3%
Revenue 1Y (TTM)20.2%
Revenue growth 3Y16.2%
Revenue growth 5Y7.41%
Revenue growth Q2Q25.07%
3.2 Future
Based on estimates for the next years, UTHR will show a small growth in Earnings Per Share. The EPS will grow by 1.17% on average per year.
The Revenue is expected to grow by 9.54% on average over the next years. This is quite good.
EPS Next Y23.58%
EPS Next 2Y13.06%
EPS Next 3Y10.39%
EPS Next 5Y1.17%
Revenue Next Year17.84%
Revenue Next 2Y11.09%
Revenue Next 3Y10.63%
Revenue Next 5Y9.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.79 indicates a reasonable valuation of UTHR.
Based on the Price/Earnings ratio, UTHR is valued cheaper than 98.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (24.92), we can say UTHR is valued rather cheaply.
UTHR is valuated reasonably with a Price/Forward Earnings ratio of 9.54.
98.80% of the companies in the same industry are more expensive than UTHR, based on the Price/Forward Earnings ratio.
UTHR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTHR is valued cheaper than 98.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UTHR is valued cheaper than 97.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.72 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
UTHR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of UTHR may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)1.46
EPS Next 2Y13.06%
EPS Next 3Y10.39%
5. Dividend
5.1 Amount
No dividends for UTHR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITED THERAPEUTICS CORP
NASDAQ:UTHR (4/26/2024, 7:22:00 PM)
After market: 233.85 0 (0%)233.85
-2.1 (-0.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap11.00B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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FCF(TTM)
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OCF(TTM)
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PEG (NY)0.5
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.74% | ||
| ROE | 16.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 51.06% | ||
| PM (TTM) | 42.31% | ||
| GM | 88.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.41 | ||
| Quick Ratio | 4.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)32.09%
EPS 3Y19.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.2%
Revenue growth 3Y16.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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