NYSE:UHS

Stock Analysis Report

Universal Health Services

Executive Summary

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Universal Health Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

UHS

5.1%

US Healthcare

0.9%

US Market


1 Year Return

9.0%

UHS

4.3%

US Healthcare

16.8%

US Market

Return vs Industry: UHS exceeded the US Healthcare industry which returned 4.3% over the past year.

Return vs Market: UHS underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

UHSIndustryMarket
7 Day0.9%5.1%0.9%
30 Day-2.9%12.0%4.5%
90 Day-3.6%13.5%6.2%
1 Year9.4%9.0%6.1%4.3%19.4%16.8%
3 Year18.1%16.9%52.6%45.8%47.5%38.0%
5 Year37.7%35.4%69.8%58.2%62.0%44.1%

Price Volatility Vs. Market

How volatile is Universal Health Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal Health Services undervalued compared to its fair value and its price relative to the market?

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UHS ($141.79) is trading below our estimate of fair value ($211.2)

Significantly Below Fair Value: UHS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UHS is good value based on its PE Ratio (17.6x) compared to the Healthcare industry average (21.7x).

PE vs Market: UHS is good value based on its PE Ratio (17.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: UHS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: UHS is good value based on its PB Ratio (2.3x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Universal Health Services forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UHS's forecast earnings growth (8.7% per year) is above the savings rate (2.7%).

Earnings vs Market: UHS's earnings (8.7% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: UHS's earnings are forecast to grow, but not significantly.

Revenue vs Market: UHS's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: UHS's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UHS's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Universal Health Services performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UHS has high quality earnings.

Growing Profit Margin: UHS's current net profit margins (6.5%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: UHS's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: UHS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UHS had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the Healthcare industry average (9.7%).


Return on Equity

High ROE: UHS's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Universal Health Services's financial position?


Financial Position Analysis

Short Term Liabilities: UHS's short term assets ($1.9B) exceeds its short term liabilities ($1.6B)

Long Term Liabilities: UHS's short term assets ($1.9B) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: UHS's debt to equity ratio (71.9%) is considered high.

Reducing Debt: UHS's debt to equity ratio has reduced from 89% to 71.9% over the past 5 years.

Debt Coverage: UHS's debt is well covered by operating cash flow (36.7%).

Interest Coverage: UHS's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: UHS's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Universal Health Services's current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: UHS's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: UHS's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: UHS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: UHS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: UHS is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Universal Health Services's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Alan Miller (81yo)

41.8yrs

Tenure

US$23,588,883

Compensation

Mr. Alan B. Miller serves as the Chief Executive Officer at Premier Behavioral Solutions, Inc. Mr. Miller has been the Chairman and Chief Executive Officer of Universal Health Realty Income Trust since its ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD23.59M) is above average for companies of similar size in the US market ($USD11.07M).

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


Management Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Management: UHS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

62yo

Average Age

Experienced Board: UHS's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: UHS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$4,242,00018 Nov 19
Steve Filton
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares30,000
Max PriceUS$141.40
SellUS$272,29631 Jul 19
Lawrence Gibbs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,798
Max PriceUS$152.00

Ownership Breakdown

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


Management Team

  • Alan Miller (81yo)

    Executive Chairman & CEO

    • Tenure: 41.8yrs
    • Compensation: US$23.59m
  • Steve Filton (61yo)

    Executive VP

    • Tenure: 16.8yrs
    • Compensation: US$3.10m
  • Marc Miller (48yo)

    President & Director

    • Tenure: 13.5yrs
    • Compensation: US$4.42m
  • Matthew Klein

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Michael Nelson

    Senior Vice President of Strategic Services

    • Tenure: 2.7yrs
  • Gerry Geckle

    Senior Vice President of Human Resources

    • Tenure: 2.7yrs
  • Marvin Pember (65yo)

    Executive VP & President of Acute Care Division

    • Tenure: 2.8yrs
    • Compensation: US$3.04m
  • Lynda Smirz

    Chief Medical Officer for Acute Care Division & VP

    • Tenure: 6.7yrs
  • Victor Radina

    Senior Vice President of Corporate Development

    • Tenure: 2.3yrs
  • Matthew Peterson

    Executive VP & President of Behavioral Health Division

    • Tenure: 0.2yrs

Board Members

  • Alan Miller (81yo)

    Executive Chairman & CEO

    • Tenure: 41.8yrs
    • Compensation: US$23.59m
  • Elliot Sussman (67yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$346.53k
  • Bob Hotz (74yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$375.14k
  • Warren Nimetz (62yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$343.61k
  • Marc Miller (48yo)

    President & Director

    • Tenure: 13.5yrs
    • Compensation: US$4.42m
  • Eileen McDonnell (57yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$366.87k
  • Lawrence Gibbs (47yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$366.14k

Company Information

Universal Health Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Health Services, Inc.
  • Ticker: UHS
  • Exchange: NYSE
  • Founded: 1978
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$12.544b
  • Shares outstanding: 88.49m
  • Website: https://www.uhsinc.com

Number of Employees


Location

  • Universal Health Services, Inc.
  • Universal Corporate Center
  • 367 South Gulph Road
  • King Of Prussia
  • Pennsylvania
  • 19406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UHSNYSE (New York Stock Exchange)YesClass B Common StockUSUSDJun 1991
UHSDB (Deutsche Boerse AG)YesClass B Common StockDEEURJun 1991
0LJLLSE (London Stock Exchange)YesClass B Common StockGBUSDJun 1991
UHS *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNJun 1991
UHIDOTCPK (Pink Sheets LLC)Class D Common StockUSUSDFeb 1993

Biography

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities. The company operates through Acute Care Hosp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:45
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.