UNITED THERAPEUTICS CORP (UTHR) Stock Fundamental Analysis
NASDAQ:UTHR - Nasdaq - US91307C1027 - Common Stock - Currency: USD
UTHR gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 550 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! This makes UTHR very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
UTHR had positive earnings in the past year.
In the past year UTHR had a positive cash flow from operations.
UTHR had positive earnings in each of the past 5 years.
UTHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UTHR has a Return On Assets of 15.71%. This is amongst the best in the industry. UTHR outperforms 96.37% of its industry peers.
UTHR has a Return On Equity of 17.31%. This is amongst the best in the industry. UTHR outperforms 96.01% of its industry peers.
With an excellent Return On Invested Capital value of 16.17%, UTHR belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UTHR is in line with the industry average of 14.58%.
The 3 year average ROIC (14.96%) for UTHR is below the current ROIC(16.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.71% | ||
| ROE | 17.31% | ||
| ROIC | 16.17% |
ROA(3y)14%
ROA(5y)12.47%
ROE(3y)16.72%
ROE(5y)15.47%
ROIC(3y)14.96%
ROIC(5y)13.31%
1.3 Margins
UTHR has a Profit Margin of 40.36%. This is amongst the best in the industry. UTHR outperforms 98.19% of its industry peers.
In the last couple of years the Profit Margin of UTHR has grown nicely.
UTHR has a better Operating Margin (50.06%) than 99.82% of its industry peers.
In the last couple of years the Operating Margin of UTHR has grown nicely.
Looking at the Gross Margin, with a value of 88.98%, UTHR belongs to the top of the industry, outperforming 91.65% of the companies in the same industry.
UTHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.06% | ||
| PM (TTM) | 40.36% | ||
| GM | 88.98% |
OM growth 3Y7.2%
OM growth 5Y2.85%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
UTHR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UTHR has been reduced compared to 1 year ago.
Compared to 5 years ago, UTHR has more shares outstanding
UTHR has a better debt/assets ratio than last year.
2.2 Solvency
UTHR has an Altman-Z score of 14.04. This indicates that UTHR is financially healthy and has little risk of bankruptcy at the moment.
UTHR has a Altman-Z score of 14.04. This is amongst the best in the industry. UTHR outperforms 90.74% of its industry peers.
UTHR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.04 |
ROIC/WACC1.45
WACC11.15%
2.3 Liquidity
A Current Ratio of 7.26 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a better Current ratio (7.26) than 67.15% of its industry peers.
A Quick Ratio of 6.94 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a better Quick ratio (6.94) than 67.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.26 | ||
| Quick Ratio | 6.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.74% over the past year.
Measured over the past years, UTHR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.88% on average per year.
Looking at the last year, UTHR shows a quite strong growth in Revenue. The Revenue has grown by 17.62% in the last year.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)17.74%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%9.57%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%11.71%
3.2 Future
Based on estimates for the next years, UTHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
UTHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y16.17%
EPS Next 2Y8.76%
EPS Next 3Y6.15%
EPS Next 5Y10.77%
Revenue Next Year12.24%
Revenue Next 2Y9.38%
Revenue Next 3Y7.47%
Revenue Next 5Y7.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
UTHR is valuated reasonably with a Price/Earnings ratio of 11.77.
UTHR's Price/Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 96.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (26.51), we can say UTHR is valued rather cheaply.
A Price/Forward Earnings ratio of 10.36 indicates a reasonable valuation of UTHR.
97.10% of the companies in the same industry are more expensive than UTHR, based on the Price/Forward Earnings ratio.
UTHR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
98.73% of the companies in the same industry are more expensive than UTHR, based on the Enterprise Value to EBITDA ratio.
UTHR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UTHR is cheaper than 96.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.7 | ||
| EV/EBITDA | 5.61 |
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.
UTHR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)0.7
EPS Next 2Y8.76%
EPS Next 3Y6.15%
5. Dividend
5.1 Amount
UTHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
301.5
+2.08 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners100.6%
Inst Owner Change-0.36%
Ins Owners1.76%
Ins Owner Change6.01%
Market Cap13.60B
Analysts79.05
Price Target383.98 (27.36%)
Short Float %3.61%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.95%
Min EPS beat(2)-9.46%
Max EPS beat(2)-0.45%
EPS beat(4)0
Avg EPS beat(4)-4.06%
Min EPS beat(4)-9.46%
Max EPS beat(4)-0.45%
EPS beat(8)3
Avg EPS beat(8)-1.6%
EPS beat(12)6
Avg EPS beat(12)-0.99%
EPS beat(16)7
Avg EPS beat(16)-3.25%
Revenue beat(2)1
Avg Revenue beat(2)2.03%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)6.71%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)6.71%
Revenue beat(8)6
Avg Revenue beat(8)2.26%
Revenue beat(12)8
Avg Revenue beat(12)1.8%
Revenue beat(16)10
Avg Revenue beat(16)1.71%
PT rev (1m)-2.16%
PT rev (3m)-3.88%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.36 | ||
| P/S | 4.42 | ||
| P/FCF | 12.7 | ||
| P/OCF | 9.92 | ||
| P/B | 1.9 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)25.62
EY8.5%
EPS(NY)29.1
Fwd EY9.65%
FCF(TTM)23.74
FCFY7.87%
OCF(TTM)30.4
OCFY10.08%
SpS68.23
BVpS159.02
TBVpS156.55
PEG (NY)0.73
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.71% | ||
| ROE | 17.31% | ||
| ROCE | 20.88% | ||
| ROIC | 16.17% | ||
| ROICexc | 27.55% | ||
| ROICexgc | 28.28% | ||
| OM | 50.06% | ||
| PM (TTM) | 40.36% | ||
| GM | 88.98% | ||
| FCFM | 34.8% |
ROA(3y)14%
ROA(5y)12.47%
ROE(3y)16.72%
ROE(5y)15.47%
ROIC(3y)14.96%
ROIC(5y)13.31%
ROICexc(3y)29.18%
ROICexc(5y)24.89%
ROICexgc(3y)30.03%
ROICexgc(5y)25.71%
ROCE(3y)19.31%
ROCE(5y)17.18%
ROICexcg growth 3Y23.22%
ROICexcg growth 5Y4.92%
ROICexc growth 3Y22.46%
ROICexc growth 5Y5.97%
OM growth 3Y7.2%
OM growth 5Y2.85%
PM growth 3Y13.74%
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 376.79% | ||
| Cap/Sales | 9.76% | ||
| Interest Coverage | 58.37 | ||
| Cash Conversion | 84.62% | ||
| Profit Quality | 86.22% | ||
| Current Ratio | 7.26 | ||
| Quick Ratio | 6.94 | ||
| Altman-Z | 14.04 |
F-Score6
WACC11.15%
ROIC/WACC1.45
Cap/Depr(3y)347.88%
Cap/Depr(5y)280.91%
Cap/Sales(3y)8.54%
Cap/Sales(5y)7.36%
Profit Quality(3y)85.86%
Profit Quality(5y)98.64%
High Growth Momentum
Growth
EPS 1Y (TTM)17.74%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%9.57%
EPS Next Y16.17%
EPS Next 2Y8.76%
EPS Next 3Y6.15%
EPS Next 5Y10.77%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%11.71%
Revenue Next Year12.24%
Revenue Next 2Y9.38%
Revenue Next 3Y7.47%
Revenue Next 5Y7.16%
EBIT growth 1Y21.63%
EBIT growth 3Y28.12%
EBIT growth 5Y17.97%
EBIT Next Year19.78%
EBIT Next 3Y5.56%
EBIT Next 5Y-4.6%
FCF growth 1Y59%
FCF growth 3Y31.3%
FCF growth 5YN/A
OCF growth 1Y58%
OCF growth 3Y30.42%
OCF growth 5YN/A