10Y annualized return is
positive but below market average
at 3.9% per year
UHS has met or exceeded earnings expectations in
all
recent quarters (2/2)
Attractive Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Strong Interest Coverage
Good Liquidity Ratios
📈 Strong Financial Performance
🏥 Increased Patient Volume
💰 Effective Capital Management
🚀 Expected EBITDA Growth
🏗️ Expansion Initiatives
🔍 Investment in Technology
Moderate Price-to-Book Ratio
Low Net Profit Margin
Moderate Debt Levels
Low Cash Ratio
⚠️ Increased Liability Reserves
📉 Medicaid Revenue Uncertainty
Overall, Universal Health Services demonstrates strong business quality through robust financial performance and effective capital management. Future prospects appear positive with anticipated growth and strategic initiatives, although potential risks from Medicaid reimbursement uncertainties remain.
Analysis Date: February 27, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Universal Health Services, Inc. (UHS) is a company that runs hospitals and healthcare facilities. They provide a wide range of medical services, including surgeries, emergency care, and mental health support. UHS operates many facilities across the United States and even in places like the UK and Puerto Rico. In addition to medical care, they also offer health insurance and help other healthcare providers with management services.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$214.51
Current Market Price: $170.95
IV/P Ratio: 1.25x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
20.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for UHS
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.17)
P/B ratio ≤ 1.5 (1.72)
Current ratio ≥ 2.0 (1.27x)
Long-term debt < Net current assets (7.99x)
Margin of safety (20.0%)
UHS does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity (ROE) of 17.51% demonstrates that UHS efficiently generates profit from its equity, which is a strong indicator of profitability.
The gross profit margin of 51.21% suggests that UHS retains a significant portion of revenue after accounting for the cost of goods sold, indicating strong operational efficiency.
With a net profit margin of 7.22%, UHS's profitability at the bottom line is relatively low, indicating challenges in controlling expenses or generating sufficient sales.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
17.51%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
51.21%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.22%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
An interest coverage ratio of 9.17 suggests UHS is well-positioned to cover its interest obligations, indicating solid financial health and low risk of default.
The current ratio of 1.27 and quick ratio of 1.27 indicate that UHS has adequate short-term liquidity to cover its current liabilities.
The debt-to-equity ratio of 0.73 indicates that UHS uses a moderate amount of debt to finance its operations, which could pose risks if not managed properly.
The cash ratio of 0.057 indicates that UHS may have limited cash reserves relative to its current liabilities, which is a potential liquidity concern.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.73x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.27x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
UHS reported a net income per diluted share of $4.96 for Q4 2024, with adjusted net income at $4.92. The company's EBITDA grew by 13% for the full year 2024, showcasing effective expense management and revenue growth.
Adjusted admissions in acute care hospitals rose by 2.2% YoY, and same facility revenue in behavioral health increased by 11.1%, indicating strong demand for services.
UHS has been actively repurchasing shares, buying back $599 million worth in 2024, which reflects confidence in its own stock and aims to enhance shareholder value.
UHS recorded a $35 million increase in reserves for self-insured professional and general liability claims, indicating potential risks in the operational environment.
For 2025, UHS forecasts mid-single-digit EBITDA growth, driven by stable operating expenses and volume growth in both acute and behavioral segments.
UHS plans to open new facilities, including Cedar Hill Medical Center in D.C., expected to contribute positively to EBITDA in 2025.
UHS has accelerated technology investments in behavioral hospitals to improve patient care, indicating a commitment to innovation and quality enhancement.
UHS acknowledged uncertainty regarding Medicaid reimbursement changes, which could impact 2025 revenues, particularly in Tennessee and D.C.