United Therapeutics Corp

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UTHR : NASDAQ : Health Care
$131.87 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 583600.0
12/08/16 - 4:00 PM ET

Financial Analysis


UNITED THERAPEUTICS CORP's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. UNITED THERAPEUTICS CORP is extremely liquid. Currently, the Quick Ratio is 4.00 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.02% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)408.2386.22
EBITDA ($mil)246.8395.33
EBIT ($mil)238.6387.08
Net Income ($mil)161.8464.43


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1032.6921.84
Total Assets ($mil)2269.22159.23
Total Debt ($mil)0.030.02
Equity ($mil)1849.61479.37


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin60.46102.36
EBITDA Margin60.46102.35
Operating Margin58.45100.22
Sales Turnover0.70.65
Return on Assets31.230.7
Return on Equity38.2844.81
Debt Q3 FY16 Q3 FY15
Current Ratio4.412.2
Debt/Capital0.00.02
Interest Expense0.50.83
Interest Coverage477.2464.12


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)42.6645.58
Div / share0.00.0
EPS3.59.24
Book value / share43.3532.45
Institutional Own % n/a n/a
Avg Daily Volume578359.0561624.0

Valuation


BUY. UNITED THERAPEUTICS CORP's P/E ratio indicates a significant discount compared to an average of 33.44 for the Biotechnology industry and a significant discount compared to the S&P 500 average of 25.45. Conducting a second comparison, its price-to-book ratio of 3.15 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 11.06. 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 9.22 Peers 33.44   UTHR 11.60 Peers 25.93

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 9.26 Peers 23.71   UTHR 0.33 Peers 0.41

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.

 

Discount. 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 trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UTHR 3.15 Peers 11.06   UTHR 14.42 Peers 3.13

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.

 

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

UTHR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UTHR 3.66 Peers 151.50   UTHR 13.31 Peers 514.21

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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