United Therapeutics Corporation
United Therapeutics Corporation Fundamental Analysis
United Therapeutics Corporation (UTHR) shows strong financial fundamentals with a PE ratio of 17.93, profit margin of 41.94%, and ROE of 19.30%. The company generates $3.1B in annual revenue with strong year-over-year growth of 10.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze UTHR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentUTHR demonstrates superior asset utilization.
Valuation Score
ModerateUTHR shows balanced valuation metrics.
Growth Score
ExcellentUTHR delivers strong and consistent growth momentum.
Financial Health Score
ExcellentUTHR maintains a strong and stable balance sheet.
Profitability Score
ExcellentUTHR achieves industry-leading margins.
Key Financial Metrics
Is UTHR Expensive or Cheap?
P/E Ratio
UTHR trades at 17.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UTHR's PEG of 3.16 indicates potential overvaluation.
Price to Book
The market values United Therapeutics Corporation at 3.37 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.97 times EBITDA. This signals the market has high growth expectations.
How Well Does UTHR Make Money?
Net Profit Margin
For every $100 in sales, United Therapeutics Corporation keeps $41.94 as profit after all expenses.
Operating Margin
Core operations generate 46.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.30 in profit for every $100 of shareholder equity.
ROA
United Therapeutics Corporation generates $16.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Therapeutics Corporation generates strong operating cash flow of $1.54B, reflecting robust business health.
Free Cash Flow
United Therapeutics Corporation generates strong free cash flow of $1.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $23.49 in free cash annually.
FCF Yield
UTHR converts 4.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How UTHR Stacks Against Its Sector Peers
| Metric | UTHR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.93 | 28.25 | Better (Cheaper) |
| ROE | 19.30% | 780.00% | Weak |
| Net Margin | 41.94% | -20122.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 6.60 | 4.66 | Strong Liquidity |
| ROA | 16.94% | -14687.00% (disorted) | Strong |
UTHR outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Therapeutics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
114.08%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
158.68%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
106.12%
Industry Style: Defensive, Growth, Innovation
High Growth