What Are the Fundamentals Of UTHR?

United Therapeutics logged a 9.8% change during today's afternoon session, and is now trading at a price of $257.38 per share.

United Therapeutics returned gains of 7.3% last year, with its stock price reaching a high of $261.54 and a low of $204.44. Over the same period, the stock underperformed the S&P 500 index by -15.8%. The company's 50-day average price was $234.31. United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. Based in Silver Spring, MD, the Large-Cap Health Care company has 1,168 full time employees. United Therapeutics has not offered a dividend during the last year.

Growing Revenues and a Positive EPS Growth Rate:

2018 2019 2020 2021 2022 2023
Revenue (M) $1,628 $1,449 $1,483 $1,686 $1,936 $2,328
Net Margins 36% -7% 35% 28% 38% 42%
Net Income (M) $589 -$104 $515 $476 $727 $985
Net Interest Expense (M) $14 $44 $24 $19 $32 $59
Depreciation & Amort. (M) $36 $46 $50 $50 $51 $53
Diluted Shares (M) 44 44 45 47 48 50
Earnings Per Share $13.39 -$2.39 $11.54 $10.06 $15.0 $19.81
EPS Growth n/a -117.85% 582.85% -12.82% 49.11% 32.07%
Avg. Price $119.05 $94.38 $112.26 $187.86 $198.58 $253.77
P/E Ratio 8.79 -39.49 9.64 17.72 12.43 12.06
Free Cash Flow (M) $594 -$290 $696 $477 $664 $748
CAPEX (M) $184 $84 $59 $121 $139 $230
Current Ratio 6.39 4.03 6.7 7.61 9.85 4.41

United Therapeutics has growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display an excellent current ratio of 4.41 and positive EPS growth.

United Therapeutics Is Potentially Undervalued and Priced Fairly:

United Therapeutics has a trailing twelve month P/E ratio of 11.8, compared to an average of 30.21 for the Health Care sector. Based on its EPS guidance of $25.03, the company has a forward P/E ratio of 9.4. The 9.3% compound average growth rate of United Therapeutics's historical and projected earnings per share yields a PEG ratio of 1.27. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing United Therapeutics in terms of its equity because its P/B ratio is 2.02 whereas the sector average is 4.08. The company's shares are currently trading 11.1% below their Graham number.

United Therapeutics Has an Average Rating of Buy:

The 13 analysts following United Therapeutics have set target prices ranging from $218.0 to $375.0 per share, for an average of $295.18 with a buy rating. The company is trading -12.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.

United Therapeutics has an above average percentage of its shares sold short because 10.4% of the company's shares are sold short. Institutions own 103.7% of the company's shares, and the insider ownership rate stands at 1.85%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 11% stake in the company is worth $1,362,800,625.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.