Universal Health Services, Inc.
Universal Health Services, Inc. Fundamental Analysis
Universal Health Services, Inc. (UHS) shows moderate financial fundamentals with a PE ratio of 10.89, profit margin of 8.09%, and ROE of 19.85%. The company generates $17.0B in annual revenue with moderate year-over-year growth of 9.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UHS's fundamental strength across five key dimensions:
Efficiency Score
WeakUHS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUHS trades at attractive valuation levels.
Growth Score
ExcellentUHS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentUHS maintains a strong and stable balance sheet.
Profitability Score
ModerateUHS maintains healthy but balanced margins.
Key Financial Metrics
Is UHS Expensive or Cheap?
P/E Ratio
UHS trades at 10.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UHS's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Universal Health Services, Inc. at 2.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.88 times EBITDA. This is generally considered low.
How Well Does UHS Make Money?
Net Profit Margin
For every $100 in sales, Universal Health Services, Inc. keeps $8.09 as profit after all expenses.
Operating Margin
Core operations generate 11.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.85 in profit for every $100 of shareholder equity.
ROA
Universal Health Services, Inc. generates $8.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Universal Health Services, Inc. produces operating cash flow of $1.95B, showing steady but balanced cash generation.
Free Cash Flow
Universal Health Services, Inc. produces free cash flow of $951.33M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.76 in free cash annually.
FCF Yield
UHS converts 6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How UHS Stacks Against Its Sector Peers
| Metric | UHS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.89 | 29.45 | Better (Cheaper) |
| ROE | 19.85% | 779.00% | Weak |
| Net Margin | 8.09% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.03 | 4.65 | Neutral |
| ROA | 8.96% | -19344.00% (disorted) | Weak |
UHS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Universal Health Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.98%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
111.00%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
5.68%
Industry Style: Defensive, Growth, Innovation
Growing