Universal Health Services Inc (UHS, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance. With a current share price of $217.35 and a daily gain of 1.71%, coupled with a significant three-month increase of 28.8%, the company shows promising growth potential. A detailed analysis using the GF Score indicates that Universal Health Services Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation 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, highlighting its strong potential in the market.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Universal Health Services Inc Business
Universal Health Services Inc, with a market cap of $14.55 billion and annual sales of $15.02 billion, operates acute care hospitals, behavioral health centers, and ambulatory surgery centers. The company is divided into two main segments: Acute Care Hospital Services and Behavioral Health Services. This diversified business model allows Universal Health Services Inc to cater to a broad range of healthcare needs.
Financial Strength Breakdown
Universal Health Services Inc's financial resilience is evident in its robust balance sheet and strategic debt management. The company's Interest Coverage ratio stands at 7.02, showcasing its ability to comfortably meet interest obligations. Furthermore, its Debt-to-Revenue ratio of 0.33 reflects prudent financial management, positioning the company well for sustainable growth.
Profitability and Growth Metrics
The Profitability Rank of Universal Health Services Inc is impressive, supported by a strong Predictability Rank of 5 stars, indicating reliable operational performance. The company's commitment to growth is evident in its 14.7% three-year revenue growth rate, outperforming 61.89% of peers in the Healthcare Providers & Services industry. This growth is complemented by a consistent increase in EBITDA, highlighting the company's effective expansion strategies.
Conclusion
Considering Universal Health Services Inc's robust financial strength, impressive profitability, and strategic growth initiatives, the GF Score underscores the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
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.
