DB:UTH

Stock Analysis Report

Executive Summary

United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases primarily in the United States and internationally.

Rewards

Trading at 58.8% below its fair value

Earnings are forecast to grow 28.22% per year

Risk Analysis

No risks detected for UTH from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has United Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UTH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.7%

UTH

3.3%

DE Biotechs

2.2%

DE Market


1 Year Return

-16.3%

UTH

-11.2%

DE Biotechs

-17.2%

DE Market

Return vs Industry: UTH underperformed the German Biotechs industry which returned -8.1% over the past year.

Return vs Market: UTH exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

UTHIndustryMarket
7 Day8.7%3.3%2.2%
30 Day-2.2%-6.5%-15.7%
90 Day10.8%-23.1%-24.0%
1 Year-16.3%-16.3%-11.0%-11.2%-14.9%-17.2%
3 Year-24.2%-24.2%14.9%13.6%-16.4%-23.3%
5 Year-47.6%-47.6%-8.0%-10.3%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is United Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is United Therapeutics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UTH (€87.5) is trading below our estimate of fair value (€212.43)

Significantly Below Fair Value: UTH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UTH is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: UTH is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UTH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UTH is good value based on its PB Ratio (1.5x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is United Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UTH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: UTH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UTH's is expected to become profitable in the next 3 years.

Revenue vs Market: UTH's revenue (2.4% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: UTH's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UTH's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has United Therapeutics performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UTH is currently unprofitable.

Growing Profit Margin: UTH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UTH is unprofitable, and losses have increased over the past 5 years at a rate of -21.3% per year.

Accelerating Growth: Unable to compare UTH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UTH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (8.7%).


Return on Equity

High ROE: UTH has a negative Return on Equity (-3.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is United Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: UTH's short term assets ($1.9B) exceed its short term liabilities ($463.0M).

Long Term Liabilities: UTH's short term assets ($1.9B) exceed its long term liabilities ($670.0M).


Debt to Equity History and Analysis

Debt Level: UTH's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: UTH's debt to equity ratio has increased from 10.2% to 30.6% over the past 5 years.


Balance Sheet

Inventory Level: UTH has a high level of physical assets or inventory.

Debt Coverage by Assets: UTH's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UTH has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UTH has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is United Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UTH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UTH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UTH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UTH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UTH's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Martine Rothblatt (64yo)

3.67s

Tenure

US$16,036,300

Compensation

Dr. Martine A. Rothblatt, Ph.D., J.D., M.B.A., founded United Therapeutics Corporation in 1996 and has been its Chief Executive Officer since June 26, 2016 and as its Chairman since 1996. Dr. Rothblatt ser ...


CEO Compensation Analysis

Compensation vs Market: Martine's total compensation ($USD16.04M) is above average for companies of similar size in the German market ($USD3.79M).

Compensation vs Earnings: Martine's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martine Rothblatt
Founder3.67yrsUS$16.04m1.53% $59.3m
Michael Benkowitz
President & COO3.67yrsUS$6.61m0.0039% $149.2k
James Edgemond
CFO & Treasurer5yrsUS$5.24m0.0017% $66.7k
Paul Mahon
Executive VP24.17yrsUS$5.30m0.082% $3.2m
Dewey Steadman
Head of Investor Relationsno datano datano data
Kevin Gray
Senior Vice President of Strategic Operations & Logisticsno datano datano data
Patrick Poisson
Executive VP of Technical Operations10.83yrsno datano data
Leigh Peterson
Vice President of Product Developmentno datano datano data

5.0yrs

Average Tenure

51yo

Average Age

Experienced Management: UTH's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martine Rothblatt
Founder3.67yrsUS$16.04m1.53% $59.3m
Raymond Kurzweil
Independent Director18.17yrsUS$479.08k0.012% $462.9k
Louis Sullivan
Independent Director & Member of the Scientific Advisory Board17.42yrsUS$510.53k0.016% $628.8k
Raymond Dwek
Non Independent Director & Member of the Scientific Advisory Boardno dataUS$480.53kno data
Christopher Patusky
Vice Chairman & Lead Independent Directorno dataUS$568.76k0.0030% $114.7k
Christopher Causey
Independent Director16.67yrsUS$518.76k0.0022% $86.1k
Thomas Thompson
Independent Director10.17yrsUS$494.08k0.060% $2.3m
Magdi Yacoub
Member of The Scientific Advisory Boardno datano datano data
Richard Giltner
Independent Director10.83yrsUS$520.53k0.0086% $331.4k
Katherine Klein
Independent Director5.25yrsUS$478.76kno data

16.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: UTH's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Therapeutics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Therapeutics Corporation
  • Ticker: UTH
  • Exchange: DB
  • Founded: 1996
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$4.260b
  • Listing Market Cap: US$3.877b
  • Shares outstanding: 43.88m
  • Website: https://www.unither.com

Number of Employees


Location

  • United Therapeutics Corporation
  • 1040 Spring Street
  • Silver Spring
  • Maryland
  • 20910
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTHRNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1999
UTHDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1999
UTHBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJun 1999

Biography

United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases primarily in the United States and internationally. The company’s commercial therapies include Remodulin, an infused formulation of the prostacyclin analogue treprostinil for subcutaneous and intravenous administration to diminish symptoms associated with exercise in pulmonary arterial hypertension (PAH) patients; Tyvaso, an inhaled formulation of treprostinil to enhace the exercise ability in PAH patients; Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients; and Unituxin, a monoclonal antibody for treating neuroblastoma. It also engages in developing OreniPro, RemoPro, Treprostinil Technosphere, Trevyent, Ralinepag, and Aurora-GT to treat PAH; LNG01 to treat IPF; Unexisome to treat BPD; and the research and development of various organ transplantation-related technologies, including regenerative medicine, xenotransplantation, biomechanical lungs, and ex-vivo lung perfusion, as well as the development of medicine for other diseases. The company has licensing and collaboration agreements with Medtronic, Inc. to develop and commercialize the implantable system for Remodulin; Caremark, L.L.C. to provide refills of implanted pumps at its infusion centers; DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of Remodulin; MannKind Corporation to develop and license treprostinil inhalation powder, and Dreamboat and Cricket devices; Arena Pharmaceuticals, Inc. to develop ralinepag for the treatment of PAH; and Samumed LLC to develop LNG01. The company was founded in 1996 and is headquartered in Silver Spring, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:54
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.