United Therapeutics Corp

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UTHR : NASDAQ : Health Care
$132.04 up 2.28 | 1.76%
Today's Range: 129.53 - 134.1
Avg. Daily Volume: 582100.0
08/16/17 - 4:00 PM ET

Financial Analysis


UNITED THERAPEUTICS CORP's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. UNITED THERAPEUTICS CORP has strong liquidity. Currently, the Quick Ratio is 1.66 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.19% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)444.6412.6
EBITDA ($mil)306.2293.1
EBIT ($mil)298.5285.2
Net Income ($mil)-56.0206.1


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1115.2944.7
Total Assets ($mil)2691.52201.5
Total Debt ($mil)250.00.9
Equity ($mil)1795.31817.1


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin97.4871.04
EBITDA Margin68.8771.03
Operating Margin67.1469.12
Sales Turnover0.610.71
Return on Assets14.6645.9
Return on Equity21.9855.61
Debt Q2 FY17 Q2 FY16
Current Ratio1.864.5
Debt/Capital0.120.0
Interest Expense1.40.6
Interest Coverage213.21475.33


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)43.4443.73
Div / share0.00.0
EPS-1.254.39
Book value / share41.3341.55
Institutional Own % n/a n/a
Avg Daily Volume569395.0640827.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.49 for the Biotechnology industry and a discount compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 3.07 indicates valuation on par with the S&P 500 average of 3.03 and a significant discount versus the industry average of 10.70. 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 14.82 Peers 38.49   UTHR 7.86 Peers 26.75

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 11.77 Peers 24.79   UTHR NM Peers 0.44

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 3.07 Peers 10.70   UTHR -58.34 Peers 10.71

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 3.38 Peers 152.23   UTHR 3.78 Peers 338.91

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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