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United Therapeutics

Nasdaq:UTHR
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UTHR
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

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 Europe. The last earnings update was 21 days ago. More info.


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  • United Therapeutics has significant price volatility in the past 3 months.
UTHR Share Price and Events
7 Day Returns
-0.6%
NasdaqGS:UTHR
2.3%
US Biotechs
1.6%
US Market
1 Year Returns
-15.9%
NasdaqGS:UTHR
-4%
US Biotechs
2.6%
US Market
UTHR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Therapeutics (UTHR) -0.6% -10.2% -24.2% -15.9% -24.6% -6.4%
US Biotechs 2.3% -0.6% -5.4% -4% 7.5% 12.9%
US Market 1.6% -1.7% 2.1% 2.6% 38.5% 41.4%
1 Year Return vs Industry and Market
  • UTHR underperformed the Biotechs industry which returned -4% over the past year.
  • UTHR underperformed the Market in United States of America which returned 2.6% over the past year.
Price Volatility
UTHR
Industry
5yr Volatility vs Market
Related Companies

Value

 Is United Therapeutics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of United Therapeutics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for United Therapeutics.

NasdaqGS:UTHR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:UTHR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.38
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.381 (1 + (1- 21%) (27.19%))
1.454
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.454 * 5.96%)
11.39%

Discounted Cash Flow Calculation for NasdaqGS:UTHR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for United Therapeutics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:UTHR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.39%)
2019 -103.80 Analyst x5 -93.18
2020 365.00 Analyst x5 294.15
2021 341.67 Analyst x3 247.18
2022 345.50 Analyst x2 224.38
2023 463.00 Analyst x1 269.93
2024 492.29 Est @ 6.33% 257.65
2025 518.13 Est @ 5.25% 243.43
2026 541.40 Est @ 4.49% 228.35
2027 562.86 Est @ 3.96% 213.12
2028 583.09 Est @ 3.59% 198.19
Present value of next 10 years cash flows $2,083.20
NasdaqGS:UTHR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $583.09 × (1 + 2.73%) ÷ (11.39% – 2.73%)
$6,913.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,913.13 ÷ (1 + 11.39%)10
$2,349.78
NasdaqGS:UTHR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,083.20 + $2,349.78
$4,432.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,432.99 / 43.81
$101.18
NasdaqGS:UTHR Discount to Share Price
Calculation Result
Value per share (USD) From above. $101.18
Current discount Discount to share price of $88.75
= -1 x ($88.75 - $101.18) / $101.18
12.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price United Therapeutics is available for.
Intrinsic value
12%
Share price is $88.75 vs Future cash flow value of $101.18
Current Discount Checks
For United Therapeutics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • United Therapeutics's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • United Therapeutics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for United Therapeutics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Therapeutics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:UTHR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-3.44
NasdaqGS:UTHR Share Price ** NasdaqGS (2019-05-21) in USD $88.75
United States of America Biotechs Industry PE Ratio Median Figure of 35 Publicly-Listed Biotechs Companies 19.23x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of United Therapeutics.

NasdaqGS:UTHR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:UTHR Share Price ÷ EPS (both in USD)

= 88.75 ÷ -3.44

-25.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Therapeutics is loss making, we can't compare its value to the US Biotechs industry average.
  • United Therapeutics is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does United Therapeutics's expected growth come at a high price?
Raw Data
NasdaqGS:UTHR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -25.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
44.4%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 28 Publicly-Listed Biotechs Companies 1.23x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for United Therapeutics, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on United Therapeutics's assets?
Raw Data
NasdaqGS:UTHR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $52.94
NasdaqGS:UTHR Share Price * NasdaqGS (2019-05-21) in USD $88.75
United States of America Biotechs Industry PB Ratio Median Figure of 415 Publicly-Listed Biotechs Companies 3.32x
United States of America Market PB Ratio Median Figure of 5,202 Publicly-Listed Companies 1.84x
NasdaqGS:UTHR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:UTHR Share Price ÷ Book Value per Share (both in USD)

= 88.75 ÷ 52.94

1.68x

* Primary Listing of United Therapeutics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Therapeutics is good value based on assets compared to the US Biotechs industry average.
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Value checks
We assess United Therapeutics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. United Therapeutics has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Therapeutics expected to grow at an attractive rate?
  • United Therapeutics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • United Therapeutics's earnings growth is expected to exceed the United States of America market average.
  • United Therapeutics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:UTHR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:UTHR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 44.4%
NasdaqGS:UTHR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 1.5%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 22.6%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 17.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:UTHR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:UTHR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,469 457 5
2022-12-31 1,365 410 5
2021-12-31 1,151 347 323 8
2020-12-31 1,196 399 359 12
2019-12-31 1,319 -191 -243 12
NasdaqGS:UTHR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,601 -125 -150
2018-12-31 1,628 778 589
2018-09-30 1,711 574 543
2018-06-30 1,744 628 713
2018-03-31 1,744 519 484
2017-12-31 1,725 474 418
2017-09-30 1,670 723 509
2017-06-30 1,632 694 395
2017-03-31 1,600 749 657
2016-12-31 1,599 644 714
2016-09-30 1,595 506 708
2016-06-30 1,573 484 1,011

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Therapeutics's earnings are expected to grow significantly at over 20% yearly.
  • United Therapeutics's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:UTHR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from United Therapeutics Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:UTHR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.34 17.19 6.00 4.00
2022-12-31 9.26 14.34 5.29 4.00
2021-12-31 7.70 11.21 2.49 6.00
2020-12-31 8.15 10.51 3.85 10.00
2019-12-31 -5.33 -2.89 -7.70 7.00
NasdaqGS:UTHR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -3.44
2018-12-31 13.54
2018-09-30 12.51
2018-06-30 16.44
2018-03-31 11.07
2017-12-31 9.50
2017-09-30 11.63
2017-06-30 9.02
2017-03-31 15.07
2016-12-31 16.29
2016-09-30 15.86
2016-06-30 22.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • United Therapeutics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess United Therapeutics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
United Therapeutics has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has United Therapeutics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare United Therapeutics's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • United Therapeutics does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare United Therapeutics's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare United Therapeutics's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
United Therapeutics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from United Therapeutics Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:UTHR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,601.20 -149.90 361.90 1,219.60
2018-12-31 1,627.80 589.20 263.30 357.90
2018-09-30 1,711.10 542.90 340.70 332.70
2018-06-30 1,743.90 712.70 282.80 286.60
2018-03-31 1,744.00 483.80 269.60 264.10
2017-12-31 1,725.30 417.90 332.60 264.60
2017-09-30 1,669.60 509.20 310.50 217.90
2017-06-30 1,632.30 394.70 363.40 208.80
2017-03-31 1,600.30 656.80 368.20 184.20
2016-12-31 1,598.80 713.70 319.30 147.60
2016-09-30 1,594.70 708.00 326.00 156.60
2016-06-30 1,572.70 1,010.60 208.60 120.30
2016-03-31 1,507.30 903.70 246.40 134.50
2015-12-31 1,465.80 651.60 452.70 245.10
2015-09-30 1,407.26 662.94 384.53 240.68
2015-06-30 1,351.01 173.30 604.34 349.96
2015-03-31 1,326.62 185.95 562.37 340.30
2014-12-31 1,288.50 340.10 381.30 242.50
2014-09-30 1,231.17 193.83 457.93 292.62
2014-06-30 1,203.45 281.75 349.54 246.49
2014-03-31 1,161.25 249.76 352.87 261.37
2013-12-31 1,116.98 174.56 394.01 299.35
2013-09-30 1,069.78 288.13 276.90 215.27
2013-06-30 1,010.03 303.56 251.42 207.68
2013-03-31 955.00 296.01 226.51 190.16
2012-12-31 916.08 304.44 194.94 173.39
2012-09-30 867.44 264.38 212.58 179.55
2012-06-30 826.71 267.07 160.61 173.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if United Therapeutics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if United Therapeutics has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if United Therapeutics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess United Therapeutics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
United Therapeutics has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is United Therapeutics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up United Therapeutics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • United Therapeutics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • United Therapeutics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of United Therapeutics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from United Therapeutics Company Filings, last reported 1 month ago.

NasdaqGS:UTHR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,319.00 1,057.10 1,605.10
2018-12-31 2,788.60 250.00 1,415.90
2018-09-30 2,692.80 250.00 1,237.60
2018-06-30 2,565.60 250.00 1,213.00
2018-03-31 2,369.40 250.00 1,256.80
2017-12-31 2,101.80 250.00 927.40
2017-09-30 2,069.90 250.00 1,210.70
2017-06-30 1,776.10 250.00 1,115.20
2017-03-31 2,065.30 0.00 1,156.30
2016-12-31 1,851.30 0.00 1,050.80
2016-09-30 1,838.70 0.00 1,032.60
2016-06-30 1,806.20 0.90 944.70
2016-03-31 1,711.80 5.40 975.10
2015-12-31 1,588.60 5.40 953.80
2015-09-30 1,466.87 30.02 921.84
2015-06-30 1,040.47 32.28 440.13
2015-03-31 1,091.62 115.22 656.87
2014-12-31 1,242.36 126.41 695.54
2014-09-30 1,180.38 291.32 767.66
2014-06-30 1,173.91 363.33 567.58
2014-03-31 1,315.55 289.05 760.49
2013-12-31 1,259.27 282.46 693.90
2013-09-30 1,260.20 283.27 716.84
2013-06-30 1,165.42 280.49 696.59
2013-03-31 1,150.70 277.70 670.64
2012-12-31 1,083.98 276.30 479.21
2012-09-30 1,060.83 273.37 503.46
2012-06-30 1,009.60 270.76 392.37
  • United Therapeutics's level of debt (45.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.1% vs 45.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on United Therapeutics's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess United Therapeutics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. United Therapeutics has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from United Therapeutics dividends. Estimated to be 0% next year.
If you bought $2,000 of United Therapeutics shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate United Therapeutics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate United Therapeutics's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:UTHR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:UTHR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as United Therapeutics has not reported any payouts.
  • Unable to verify if United Therapeutics's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of United Therapeutics's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as United Therapeutics has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of United Therapeutics's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess United Therapeutics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can United Therapeutics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Therapeutics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of United Therapeutics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martine Rothblatt
COMPENSATION $16,036,300
AGE 63
TENURE AS CEO 2.9 years
CEO Bio

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 serves as the Chairman, President and Chief Executive Officer of Lung Rx Inc (also known as Lung LLC). Dr. Rothblatt served as Co-Chief Executive Officer of United Therapeutics Corporation from January 1, 2015 to June 26, 2016. Dr. Rothblatt served as the Chief Executive Officer of United Therapeutics Corporation from 1996 to January 2015. She is a communications technologist and medical biotechnology executive. Prior to founding United Therapeutics, she founded and served as Chief Executive Officer of Sirius Satellite Radio, co-founded and served as Chief Operating Officer of satellite sound broadcasting pioneer WorldSpace Corp. and was principally responsible for several other unique applications of satellite communications technology. She is a co-inventor on six of United Therapeutics patents pertaining to treprostinil. She has served as a United Therapeutics director since 1996. Dr. Rothblatt also represented the radio astronomy interests of the National Academy of Sciences Committee on Radio Frequencies before the FCC and led the International Bar Associations efforts to present the United Nations with a draft Human Genome Treaty. She is a member of the Committee on Science, Technology and Law of the National Academy of Sciences since 2014. She serves as Director of Synthetic Genomics, Inc. Dr. Rothblatt serves as the President of the William Harvey Medical Research Foundation and past-Chairman of the Law and Medicine Committee of the International Bar Association. Her book, Your Life or Mine: How Geoethics Can Resolve the Conflict Between Public and Private Interests In Xenotransplantation was published by Ashgate in 2004. Dr. Rothblatt graduated from UCLA with a combined law and MBA degree in 1981 and received her Ph.D. in Medical Ethics in 2001 from University of London.

CEO Compensation
  • Martine's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Martine's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the United Therapeutics management team in years:

4.2
Average Tenure
50
Average Age
  • The tenure for the United Therapeutics management team is about average.
Management Team

Martine Rothblatt

TITLE
Founder
COMPENSATION
$16M
AGE
63
TENURE
2.9 yrs

Michael Benkowitz

TITLE
President & COO
COMPENSATION
$7M
AGE
46
TENURE
2.9 yrs

James Edgemond

TITLE
CFO & Treasurer
COMPENSATION
$5M
AGE
50
TENURE
4.2 yrs

Paul Mahon

TITLE
Executive VP
COMPENSATION
$5M
AGE
54
TENURE
23.3 yrs

Kevin Gray

TITLE
Senior Vice President of Strategic Operations & Logistics

Patrick Poisson

TITLE
Executive VP of Technical Operations
AGE
50
TENURE
10.1 yrs
Board of Directors Tenure

Average tenure and age of the United Therapeutics board of directors in years:

15.8
Average Tenure
66.5
Average Age
  • The average tenure for the United Therapeutics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Martine Rothblatt

TITLE
Founder
COMPENSATION
$16M
AGE
63
TENURE
23.3 yrs

Christopher Patusky

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
$569K
AGE
54

Chris Causey

TITLE
Independent Director
COMPENSATION
$519K
AGE
55
TENURE
15.8 yrs

Richard Giltner

TITLE
Independent Director
COMPENSATION
$521K
AGE
54
TENURE
10.1 yrs

Louis Sullivan

TITLE
Independent Director & Member of the Scientific Advisory Board
COMPENSATION
$511K
AGE
85
TENURE
16.7 yrs

Raymond Dwek

TITLE
Non Independent Director & Member of the Scientific Advisory Board
COMPENSATION
$481K
AGE
76

Ray Kurzweil

TITLE
Independent Director
COMPENSATION
$479K
AGE
70
TENURE
17.3 yrs

Magdi Yacoub

TITLE
Member of The Scientific Advisory Board
AGE
82

Tommy Thompson

TITLE
Independent Director
COMPENSATION
$494K
AGE
76
TENURE
9.3 yrs

Katherine Klein

TITLE
Independent Director
COMPENSATION
$479K
AGE
61
TENURE
4.5 yrs
Who owns this company?
Recent Insider Trading
  • United Therapeutics insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Christopher Patusky Individual 07. Mar 19 07. Mar 19 -3,370 $110.75 $-373,228
10. Sep 18 Sell Christopher Causey Individual 10. Sep 18 10. Sep 18 -810 $119.00 $-96,390
07. Sep 18 Sell Christopher Causey Individual 06. Sep 18 06. Sep 18 -810 $118.00 $-95,580
17. Aug 18 Sell Richard Giltner Individual 16. Aug 18 16. Aug 18 -3,240 $129.38 $-419,198
13. Jun 18 Sell Judy Olian Individual 12. Jun 18 12. Jun 18 -600 $112.38 $-67,425
X
Management checks
We assess United Therapeutics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. United Therapeutics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is United Therapeutics Corporation's (NASDAQ:UTHR) Balance Sheet Strong Enough To Weather A Storm?

UTHR’s Debt (And Cash Flows) Over the past year, UTHR has ramped up its debt from US$250m to US$1.1b , which includes long-term debt. … Looking at UTHR’s US$270m in current liabilities, it appears that the company has been able to meet these obligations given the level of current assets of US$1.9b, with a current ratio of 7.19x. … Next Steps: UTHR’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Did United Therapeutics Corporation (NASDAQ:UTHR) Use Debt To Deliver Its ROE Of -5.4%?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of United Therapeutics Corporation (NASDAQ:UTHR). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $-0.054 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

United Therapeutics Corporation (NASDAQ:UTHR) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in United Therapeutics Corporation (NASDAQ:UTHR). … United Therapeutics Insider Transactions Over The Last Year. … United Therapeutics insiders didn't buy any shares over the last year

Simply Wall St -

Is United Therapeutics Corporation (NASDAQ:UTHR) A Financially Strong Company?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as United Therapeutics Corporation (NASDAQ:UTHR), with a market capitalization of US$5.0b, rarely draw their attention from the investing community. … This article will examine UTHR’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Check out our latest analysis for United Therapeutics

Simply Wall St -

Does United Therapeutics Corporation's (NASDAQ:UTHR) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Martine Rothblatt's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that United Therapeutics Corporation has a market cap of US$5.3b, and is paying total annual CEO compensation of US$37m.

Simply Wall St -

Did You Miss United Therapeutics's (NASDAQ:UTHR) 16% Share Price Gain?

United Therapeutics Corporation (NASDAQ:UTHR) shareholders might be concerned after seeing the share price drop 13% in the last week. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, United Therapeutics achieved compound earnings per share (EPS) growth of 31% per year.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand United Therapeutics Corporation (NASDAQ:UTHR)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how United Therapeutics Corporation's (NASDAQ:UTHR) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why United Therapeutics Corporation (NASDAQ:UTHR) Is A Star In A Falling Market

I'm talking about the well-proven, robust track record United Therapeutics Corporation. … See our latest analysis for United Therapeutics? … United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases worldwide

Simply Wall St -

Is United Therapeutics Corporation (NASDAQ:UTHR) Expensive For A Reason? A Look At The Intrinsic Value

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is United Therapeutics Corporation's (NASDAQ:UTHR) Liquidity Good Enough?

Stocks with market capitalization between $2B and $10B, such as United Therapeutics Corporation (NASDAQ:UTHR) with a size of US$4.8b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Don’t forget that this is a general and concentrated examination of United Therapeutics's financial health, so you should conduct further analysis. … See our latest analysis for United Therapeutics

Simply Wall St -

Company Info

Description

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 Europe. 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 esuberaprost, RemoPro, Treprostinil Technosphere, Trevyent, ralinepag, and Aurora-GT to treat PAH; 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. United Therapeutics Corporation has licensing and collaboration agreements with Medtronic, Inc. to develop and commercialize the implantable system for Remodulin in the United States, the United Kingdom, Canada, France, Germany, Italy, and Japan; 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 SM04646, a phase I development-stage Wnt pathway inhibitor for treating idiopathic pulmonary fibrosis. United Therapeutics Corporation was founded in 1996 and is headquartered in Silver Spring, Maryland.

Details
Name: United Therapeutics Corporation
UTHR
Exchange: NasdaqGS
Founded: 1996
$3,888,218,706
43,810,915
Website: http://www.unither.com
Address: United Therapeutics Corporation
1040 Spring Street,
Silver Spring,
Maryland, 20910,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS UTHR Common Shares Nasdaq Global Select US USD 17. Jun 1999
DB UTH Common Shares Deutsche Boerse AG DE EUR 17. Jun 1999
Number of employees
Current staff
Staff numbers
860
United Therapeutics employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 03:44
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.