NasdaqGS:UTHR

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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. More Details

Rewards

Trading at 55% below our estimate of its fair value

Earnings are forecast to grow 12.12% per year

Became profitable this year

Risk Analysis

No risks detected for UTHR from our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet.


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: UTHR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.2%

UTHR

-4.0%

US Biotechs

-1.4%

US Market


1 Year Return

45.2%

UTHR

31.7%

US Biotechs

17.8%

US Market

Return vs Industry: UTHR exceeded the US Biotechs industry which returned 31.7% over the past year.

Return vs Market: UTHR exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

UTHRIndustryMarket
7 Day6.2%-4.0%-1.4%
30 Day21.4%0.1%4.7%
90 Day8.8%-3.5%8.2%
1 Year45.2%45.2%34.0%31.7%20.5%17.8%
3 Year1.7%1.7%18.7%12.8%42.2%32.7%
5 Year-16.7%-16.7%13.4%5.4%83.4%62.7%

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

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: UTHR ($122.1) is trading below our estimate of fair value ($271.35)

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


Price To Earnings Ratio

PE vs Industry: UTHR is good value based on its PE Ratio (12.5x) compared to the US Biotechs industry average (29.1x).

PE vs Market: UTHR is good value based on its PE Ratio (12.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: UTHR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: UTHR is good value based on its PB Ratio (1.8x) compared to the US Biotechs industry average (3.3x).


Next Steps

Future Growth

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

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UTHR's forecast earnings growth (12.1% per year) is above the savings rate (2.2%).

Earnings vs Market: UTHR's earnings (12.1% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: UTHR's revenue (5.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: UTHR's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UTHR's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has United Therapeutics performed over the past 5 years?

-23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UTHR has high quality earnings.

Growing Profit Margin: UTHR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: UTHR's earnings have declined by 23.7% per year over the past 5 years.

Accelerating Growth: UTHR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: UTHR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (-3.2%).


Return on Equity

High ROE: UTHR's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is United Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: UTHR's short term assets ($1.9B) exceed its short term liabilities ($255.0M).

Long Term Liabilities: UTHR's short term assets ($1.9B) exceed its long term liabilities ($870.7M).


Debt to Equity History and Analysis

Debt Level: UTHR's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: UTHR's debt to equity ratio has increased from 3.1% to 25.7% over the past 5 years.

Debt Coverage: UTHR's debt is well covered by operating cash flow (83.8%).

Interest Coverage: UTHR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if UTHR'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 UTHR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Martine Rothblatt (65 yo)

4.33yrs

Tenure

US$45,635,037

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 ($USD45.64M) is above average for companies of similar size in the US market ($USD7.32M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martine Rothblatt
Founder4.33yrsUS$45.64m1.53%
$ 82.9m
Michael Benkowitz
President & COO4.33yrsUS$19.64m0.0045%
$ 244.0k
James Edgemond
CFO & Treasurer5.58yrsUS$15.97m0.0024%
$ 131.2k
Paul Mahon
Executive VP24.75yrsUS$16.57m0.081%
$ 4.4m
Dewey Steadman
Head of Investor Relationsno datano datano data
Holly Hobson
Associate Vice President of Human Resourcesno datano datano data
Kevin Gray
Senior Vice President of Strategic Operations & Logisticsno datano datano data
Patrick Poisson
Executive VP of Technical Operations11.5yrsno datano data
Leigh Peterson
Vice President of Product Developmentno datano datano data
Shola Oyewole
Vice President of Digital Innovationno datano datano data

5.6yrs

Average Tenure

52yo

Average Age

Experienced Management: UTHR's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martine Rothblatt
Founder4.33yrsUS$45.64m1.53%
$ 82.9m
Samuel Thier
Member of the Scientific Advisory Boardno datano datano data
Raymond Kurzweil
Independent Director18.75yrsUS$411.74k0.017%
$ 920.8k
Louis Sullivan
Independent Director & Member of the Scientific Advisory Boardno dataUS$441.74k0.021%
$ 1.2m
Raymond Dwek
Independent Director & Member of the Scientific Advisory Board18.75yrsUS$411.26kno data
Christopher Patusky
Independent Vice Chairman & Lead Independent Directorno dataUS$496.60k0.0081%
$ 439.8k
Christopher Causey
Independent Director17.25yrsUS$466.71k0.0019%
$ 100.9k
Robert Bourge
Member of the Scientific Advisory Boardno datano datano data
Thomas Thompson
Independent Director10.75yrsUS$426.95k0.042%
$ 2.3m
Magdi Yacoub
Member of The Scientific Advisory Boardno datano datano data
Richard Giltner
Independent Director11.5yrsUS$451.26k0.019%
$ 1.0m
Katherine Klein
Independent Director5.92yrsUS$411.95k0%
$ 0

17.3yrs

Average Tenure

72yo

Average Age

Experienced Board: UTHR's board of directors are seasoned and experienced ( 17.3 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.


Recent Insider Transactions

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: UTHR
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$5.423b
  • Shares outstanding: 44.41m
  • 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

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 Uni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:04
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.