UNITED THERAPEUTICS CORP (UTHR) Stock Fundamental Analysis
NASDAQ:UTHR - Nasdaq - US91307C1027 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to UTHR. UTHR was compared to 567 industry peers in the Biotechnology industry. UTHR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. UTHR is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, UTHR could be worth investigating further 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.
In the past 5 years UTHR has always been profitable.
In the past 5 years UTHR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.23%, UTHR belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
UTHR's Return On Equity of 18.55% is amongst the best of the industry. UTHR outperforms 96.30% of its industry peers.
UTHR's Return On Invested Capital of 16.93% is amongst the best of the industry. UTHR outperforms 97.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UTHR is in line with the industry average of 14.24%.
The 3 year average ROIC (14.96%) for UTHR is below the current ROIC(16.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.23% | ||
| ROE | 18.55% | ||
| ROIC | 16.93% |
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
The Profit Margin of UTHR (41.53%) is better than 98.94% of its industry peers.
UTHR's Profit Margin has improved in the last couple of years.
UTHR has a Operating Margin of 50.33%. This is amongst the best in the industry. UTHR outperforms 99.65% of its industry peers.
In the last couple of years the Operating Margin of UTHR has grown nicely.
UTHR has a better Gross Margin (89.24%) than 90.48% of its industry peers.
UTHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.33% | ||
| PM (TTM) | 41.53% | ||
| GM | 89.24% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UTHR is still creating some value.
UTHR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UTHR has more shares outstanding
Compared to 1 year ago, UTHR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.59 indicates that UTHR is not in any danger for bankruptcy at the moment.
The Altman-Z score of UTHR (11.59) is better than 89.59% 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 | 0.28 | ||
| Altman-Z | 11.59 |
ROIC/WACC1.68
WACC10.07%
2.3 Liquidity
A Current Ratio of 5.25 indicates that UTHR has no problem at all paying its short term obligations.
UTHR has a Current ratio (5.25) which is comparable to the rest of the industry.
UTHR has a Quick Ratio of 5.03. This indicates that UTHR is financially healthy and has no problem in meeting its short term obligations.
UTHR has a Quick ratio of 5.03. This is comparable to the rest of the industry: UTHR outperforms 56.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.25 | ||
| Quick Ratio | 5.03 |
3. Growth
3.1 Past
UTHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.49%, which is quite good.
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.
UTHR shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.63%.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)18.49%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%7.46%
Revenue 1Y (TTM)23.63%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%17.22%
3.2 Future
The Earnings Per Share is expected to grow by 18.63% on average over the next years. This is quite good.
Based on estimates for the next years, UTHR will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
EPS Next Y14.8%
EPS Next 2Y8.72%
EPS Next 3Y7.15%
EPS Next 5Y18.63%
Revenue Next Year9.38%
Revenue Next 2Y7.73%
Revenue Next 3Y7.18%
Revenue Next 5Y7.45%
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
A Price/Earnings ratio of 11.76 indicates a reasonable valuation of UTHR.
UTHR's Price/Earnings ratio is rather cheap when compared to the industry. UTHR is cheaper than 97.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of UTHR to the average of the S&P500 Index (28.22), we can say UTHR is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.13, the valuation of UTHR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, UTHR is valued cheaper than 96.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UTHR to the average of the S&P500 Index (20.86), we can say UTHR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UTHR is valued cheaply inside the industry as 99.29% of the companies are valued more expensively.
97.53% of the companies in the same industry are more expensive than UTHR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 5.76 |
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 excellent profitability rating of UTHR may justify a higher PE ratio.
PEG (NY)0.79
PEG (5Y)0.7
EPS Next 2Y8.72%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
UTHR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
294.6
+0.75 (+0.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners101.21%
Inst Owner Change0.94%
Ins Owners1.76%
Ins Owner Change-13.53%
Market Cap13.29B
Analysts79
Price Target406.35 (37.93%)
Short Float %3.77%
Short Ratio3.17
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)-3.16%
Min EPS beat(2)-3.83%
Max EPS beat(2)-2.49%
EPS beat(4)1
Avg EPS beat(4)-2.41%
Min EPS beat(4)-10.35%
Max EPS beat(4)7.04%
EPS beat(8)5
Avg EPS beat(8)2.05%
EPS beat(12)7
Avg EPS beat(12)0.22%
EPS beat(16)8
Avg EPS beat(16)-6.45%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)1.61%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)6.48%
Revenue beat(8)6
Avg Revenue beat(8)2.77%
Revenue beat(12)8
Avg Revenue beat(12)2.06%
Revenue beat(16)11
Avg Revenue beat(16)2.48%
PT rev (1m)-0.63%
PT rev (3m)0.09%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-2.61%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-4.07%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.13 | ||
| P/S | 4.62 | ||
| P/FCF | 12.3 | ||
| P/OCF | 10.01 | ||
| P/B | 2.06 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)25.06
EY8.51%
EPS(NY)29.08
Fwd EY9.87%
FCF(TTM)23.95
FCFY8.13%
OCF(TTM)29.42
OCFY9.99%
SpS63.79
BVpS142.85
TBVpS140.37
PEG (NY)0.79
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.23% | ||
| ROE | 18.55% | ||
| ROCE | 21.86% | ||
| ROIC | 16.93% | ||
| ROICexc | 33.4% | ||
| ROICexgc | 34.55% | ||
| OM | 50.33% | ||
| PM (TTM) | 41.53% | ||
| GM | 89.24% | ||
| FCFM | 37.55% |
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-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.28 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 340% | ||
| Cap/Sales | 8.57% | ||
| Interest Coverage | 36.02 | ||
| Cash Conversion | 87.27% | ||
| Profit Quality | 90.42% | ||
| Current Ratio | 5.25 | ||
| Quick Ratio | 5.03 | ||
| Altman-Z | 11.59 |
F-Score9
WACC10.07%
ROIC/WACC1.68
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)18.49%
EPS 3Y34.86%
EPS 5Y16.88%
EPS Q2Q%7.46%
EPS Next Y14.8%
EPS Next 2Y8.72%
EPS Next 3Y7.15%
EPS Next 5Y18.63%
Revenue 1Y (TTM)23.63%
Revenue growth 3Y19.52%
Revenue growth 5Y14.71%
Sales Q2Q%17.22%
Revenue Next Year9.38%
Revenue Next 2Y7.73%
Revenue Next 3Y7.18%
Revenue Next 5Y7.45%
EBIT growth 1Y21.84%
EBIT growth 3Y28.12%
EBIT growth 5Y17.97%
EBIT Next Year16.07%
EBIT Next 3Y6.36%
EBIT Next 5Y-4.6%
FCF growth 1Y44.54%
FCF growth 3Y31.3%
FCF growth 5YN/A
OCF growth 1Y35.7%
OCF growth 3Y30.42%
OCF growth 5YN/A