Universal Health Services Inc (UHS)'s Winning Formula: Financial Metrics and Competitive Strengths

Exploring the Robust Financial Health and Growth Prospects of Universal Health Services Inc

Universal Health Services Inc (UHS, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $186.4, despite a daily loss of 1.69%, the company has shown a promising three-month growth of 9.52%. A detailed analysis, supported by the GF Score, positions Universal Health Services Inc for substantial future growth.

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What Is the GF Score?

The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key dimensions of valuation. These dimensions have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Universal Health Services Inc boasts a GF Score of 94, signaling strong future performance potential.

Understanding Universal Health Services Inc's Business

Universal Health Services Inc, with a market cap of $12.48 billion and annual sales of $14.66 billion, operates a diverse range of health facilities, including acute care hospitals, behavioral health centers, and ambulatory surgery centers. The company is segmented into Acute Care Hospital Services and Behavioral Health Services, focusing on high-quality medical and surgical treatment and mental health care.

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Financial Strength Breakdown

Universal Health Services Inc's financial robustness is evident in its Interest Coverage ratio of 6.29, showcasing its ability to comfortably meet interest obligations. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.36, further solidifying its financial stability.

Profitability and Growth Metrics

The company's profitability is highlighted by its high Profitability Rank and a Piotroski F-Score, indicating efficient operations and strong financial health. Growth is another area where Universal Health Services Inc excels, with a 3-Year Revenue Growth Rate of 14.7%, outperforming 62.22% of its industry peers. The consistent increase in EBITDA over the past years underscores its capacity for sustained growth.

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Conclusion

Considering Universal Health Services Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for solid investment opportunities may find Universal Health Services Inc an attractive option.

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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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.