United Therapeutics Corp

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UTHR : NASDAQ : Health Care
$120.92 -0.82 | -0.67%
Today's Range: 112.01 - 119.32
Avg. Daily Volume: 612900.0
04/26/17 - 10:16 AM ET

Financial Analysis


UNITED THERAPEUTICS CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. UNITED THERAPEUTICS CORP is extremely liquid. Currently, the Quick Ratio is 3.81 which clearly shows the ability to cover any short-term cash needs. UTHR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.41% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)409.0404.88
EBITDA ($mil)182.0163.02
EBIT ($mil)174.2155.06
Net Income ($mil)110.3104.64


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1050.8953.77
Total Assets ($mil)2325.62184.45
Total Debt ($mil)0.05.39
Equity ($mil)1862.21599.65


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin44.540.26
EBITDA Margin44.4940.26
Operating Margin42.5938.3
Sales Turnover0.690.67
Return on Assets30.6829.83
Return on Equity38.3240.73
Debt Q4 FY16 Q4 FY15
Current Ratio4.292.89
Debt/Capital0.00.0
Interest Expense2.20.55
Interest Coverage79.18283.99


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)42.9745.76
Div / share0.00.0
EPS2.432.1
Book value / share43.3434.96
Institutional Own % n/a n/a
Avg Daily Volume616420.0606489.0

Valuation


BUY. UNITED THERAPEUTICS CORP's P/E ratio indicates a significant discount compared to an average of 37.21 for the Biotechnology industry and a significant discount compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 2.80 indicates valuation on par with the S&P 500 average of 2.99 and a significant discount versus the industry average of 11.43. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, UNITED THERAPEUTICS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UTHR 8.00 Peers 37.21   UTHR 8.09 Peers 24.72

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

UTHR is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

UTHR is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UTHR 10.34 Peers 43.15   UTHR NM Peers 0.49

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

UTHR is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

UTHR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UTHR 2.80 Peers 11.43   UTHR 17.61 Peers 149.25

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

UTHR is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, UTHR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UTHR 3.26 Peers 191.95   UTHR 9.07 Peers 395.13

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

UTHR is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UTHR significantly trails its peers on the basis of sales growth

 

 

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