Universal Health Services Inc (UHS, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that promises significant growth. With a current share price of $150.56, the company has enjoyed a daily increase of 0.83% and an impressive three-month growth of 18.3%. A deep dive into the GF Score reveals that Universal Health Services Inc is on a path to substantial growth, positioning it as a compelling pick for investors.
What Is the GF Score?
The GF Score is an innovative stock performance ranking system by GuruFocus, which evaluates stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns than those with lower scores, making the GF Score a vital tool for investors. The score ranges from 0 to 100, with 100 indicating the highest potential for outperformance.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 10/10
Each component of the GF Score is individually ranked, with each rank positively correlating with long-term stock performance. The GF Score is calculated by weighing these key aspects differently based on their impact on stock price performance. With high ranks in growth and momentum and a respectable score in profitability, Universal Health Services Inc has been assigned a GF Score of 94 out of 100, signaling strong potential for market outperformance.
Understanding Universal Health Services Inc's Business
Universal Health Services Inc, with a market cap of $10.27 billion and sales of $14.03 billion, operates with an operating margin of 7.88%. The company owns and operates a diverse portfolio of acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. It functions through two primary segments: Acute Care Hospital Services and Behavioral Health Services, providing a comprehensive range of healthcare services.
Profitability Rank Breakdown
The Profitability Rank reflects Universal Health Services Inc's exceptional ability to generate profits compared to its industry peers. The company's financial health is further reinforced by the Piotroski F-Score, which evaluates nine criteria related to profitability, funding, and operational efficiency. Additionally, Universal Health Services Inc's Predictability Rank of 5 stars out of five highlights its consistent operational performance, instilling greater investor confidence.
Growth Rank Breakdown
Universal Health Services Inc's high Growth Rank underscores its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 12.4% surpasses 60.75% of companies in the Healthcare Providers & Services industry. The consistent increase in EBITDA over the past years, with a three-year growth rate of 3.3 and a five-year rate of 5.3, emphasizes Universal Health Services Inc's ability to sustain growth.
Next Steps
Considering Universal Health Services Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and promising growth prospects would do well to consider Universal Health Services Inc as a key component of their investment portfolios. For more insights into companies with strong GF Scores, GuruFocus Premium members can utilize the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
