Universal Health (UHS) AI Stock Analysis

• Market Cap: $14.26B
• Dividend Yield: 0.36%
• Average Volume (3M): 630.98K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.75
• Revenue Growth: 10.21%
• EPS Growth: 39.58%
• Country: US
• Employees: 99,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 5.69
• Shares Outstanding: 56,388,016
• 10 Day Avg. Volume: 753,304
• 30 Day Avg. Volume: 630,980
• PEG Ratio: 0.16
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 10.63
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 7.00
• 1Y Price Target: $245.29
• Price Target Upside: 7.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $244.00 ▲(7.04% Upside)

Universal Health Services demonstrates strong financial performance and positive earnings call outcomes, driving a high overall score. The technical analysis suggests bullish momentum, though caution is advised due to overbought signals. Valuation is reasonable, but the low dividend yield may deter some investors.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for UHS's services, suggesting robust operational performance and market position.

Behavioral Health Expansion

Expanding the behavioral health segment enhances UHS's service offerings and market reach, supporting long-term growth and competitive advantage.

EPS Guidance Increase

Raising EPS guidance reflects management's confidence in future profitability and operational efficiency, indicating strong business fundamentals.

Negative Factors

Cash Flow Decline

Declining cash flow can limit UHS's ability to invest in growth opportunities and manage debt, potentially impacting financial flexibility.

Medicaid Program Uncertainty

Potential reductions in Medicaid benefits could significantly impact UHS's revenue, introducing long-term financial uncertainty.

Start-up Losses at Cedar Hill

Start-up losses at new facilities can strain resources and delay profitability, affecting UHS's operational efficiency and financial performance.

Universal Health Business Overview & Revenue Model

Company Description

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. The company operates through Acute Care Hospital Services and Behavioral Health Care Services segments. Its hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services. As of February 24, 2022, it owned and/or operated 363 inpatient facilities, and 40 outpatient and other facilities located in 39 states; Washington, D.C.; the United Kingdom; and Puerto Rico. The company also provides commercial health insurance services; and various management services, which include central purchasing, information, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. Universal Health Services, Inc. founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

How the Company Makes Money

UHS generates revenue primarily through patient services in its hospitals and behavioral health facilities. The company bills for services rendered to patients, which is reimbursed by government programs like Medicare and Medicaid, as well as private insurance companies. Key revenue streams include inpatient and outpatient services, emergency room visits, and rehabilitation services. Additionally, UHS benefits from partnerships with various healthcare providers and payers, which can enhance patient referrals and optimize service delivery. The company's strategic acquisitions of healthcare facilities also contribute to its revenue growth by expanding its operational footprint and service offerings.

Universal Health Financial Statement Overview

Summary

Universal Health exhibits strong financial health with consistent revenue growth and profitability. The company maintains a balanced leverage position and demonstrates effective cash flow management. While there are areas for improvement in cash flow conversion, the overall financial performance is robust, positioning the company well within the medical care facilities industry.

Income Statement

Universal Health has demonstrated strong revenue growth with a TTM revenue growth rate of 3.23%, indicating a positive trajectory. The company maintains a high gross profit margin of 90.17%, showcasing efficient cost management. Net profit margin is healthy at 7.66%, reflecting solid profitability. EBIT and EBITDA margins are also robust at 11.12% and 14.74%, respectively, indicating effective operational performance.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.71, suggesting a balanced approach to leveraging. Return on equity is strong at 18.62%, indicating effective use of shareholder funds. The equity ratio stands at 46.73%, reflecting a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth rate of 52.22%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.82, suggesting strong cash conversion. However, the free cash flow to net income ratio of 0.47 indicates room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.99B	15.83B	14.28B	13.40B	12.64B	11.56B
Gross Profit	15.35B	14.24B	12.75B	11.93B	11.21B	10.27B
EBITDA	2.59B	2.27B	1.71B	1.58B	1.91B	1.87B
Net Income	1.38B	1.14B	717.79M	675.61M	991.59M	943.95M
Balance Sheet
Total Assets	15.34B	14.47B	13.97B	13.49B	13.09B	13.48B
Cash, Cash Equivalents and Short-Term Investments	112.89M	125.98M	119.44M	102.82M	115.30M	1.22B
Total Debt	5.11B	4.96B	5.37B	5.27B	4.56B	4.19B
Total Liabilities	8.05B	7.71B	7.77B	7.52B	6.90B	7.07B
Stockholders Equity	7.23B	6.67B	6.15B	5.92B	6.09B	6.32B
Cash Flow
Free Cash Flow	1.37B	1.12B	524.74M	262.02M	28.04M	1.63B
Operating Cash Flow	2.86B	2.07B	1.27B	996.02M	883.70M	2.36B
Investing Cash Flow	-1.63B	-911.11M	-763.27M	-647.30M	-914.47M	-802.56M
Financing Cash Flow	-1.20B	-1.14B	-493.94M	-318.40M	-1.07B	-384.86M

Universal Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHS, the sentiment is Positive. The current price of 227.95 is above the 20-day moving average (MA) of 211.20, above the 50-day MA of 200.38, and above the 200-day MA of 184.22, indicating a bullish trend. The MACD of 6.94 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 87.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UHS.

Universal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	78 Outperform	$14.26B	10.65	19.97%	0.36%	10.21%	39.58%
HCA	77 Outperform	$107.63B	18.23	―	0.63%	6.82%	15.82%
FMS	73 Outperform	$13.75B	19.79	5.31%	3.24%	4.09%	13.17%
THC	73 Outperform	$18.26B	14.30	34.51%	―	-0.56%	-53.50%
EHC	62 Neutral	$11.79B	22.14	24.94%	0.55%	11.13%	27.53%
DVA	58 Neutral	$8.47B	12.48	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Universal Health Corporate Events

Universal Health Services Reports Strong Q3 2025 Results

Universal Health Services, Inc. (UHS) is a prominent provider of hospital and healthcare services, operating across various sectors including acute care and behavioral health facilities. Headquartered in King of Prussia, PA, UHS is recognized as a Fortune 500 company with a wide network of facilities in the United States, Puerto Rico, and the United Kingdom.

UHS Earnings Call: Mixed Outlook with Strong EPS Growth

The recent earnings call for Universal Health Services (UHS) painted a mixed picture for investors. On the one hand, the company showcased impressive growth in earnings per share (EPS) and revenue, alongside strategic advancements in hospital openings and share repurchase programs. However, challenges such as increased reserves, legal settlements, and modest growth in the behavioral health segment tempered the overall positive sentiment.

Universal Health Faces $500 Million Verdict in Nevada

Universal Health Services, Inc.’s subsidiary, UHS of Delaware, Inc., along with Pinnacle Management Group NV, LLC and several individuals, faced a lawsuit in Washoe County, Nevada, concerning allegations of interference with contractual relationships due to physicians leaving St. Mary’s Medical Group in Reno to join Pinnacle Medical Group in 2021. On September 26, 2025, a verdict was rendered against UHS of Delaware, Inc. and other defendants for $4.7 million in compensatory damages and $500 million in punitive damages, though the latter is expected to be reduced significantly. The defendants are considering legal options to challenge the verdict.

The most recent analyst rating on (UHS) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Universal Health stock, see the UHS Stock Forecast page.

Universal Health Services Faces Revenue Uncertainty Amid Medicaid Dependence and State-Level Risks

Universal Health Services faces significant business risks due to its heavy reliance on Medicaid and other state-based revenue programs, which generate substantial income from states like California, Texas, and Florida. These programs are subject to annual approval, creating uncertainty about the continuity of funding at current levels. Additionally, the company is vulnerable to regulatory, economic, environmental, and competitive changes in these states, which could further impact its financial stability. This sensitivity underscores the potential volatility in revenue streams and the need for strategic planning to mitigate these risks.

Universal Health Services Reports Strong Q2 2025 Results

Universal Health Services, Inc. (UHS) is a leading provider of hospital and healthcare services, operating a network of acute care hospitals, behavioral health facilities, and outpatient centers across the United States, the United Kingdom, and Puerto Rico. The company is recognized for its commitment to quality care and strategic growth in the healthcare sector.

Universal Health Services Balances Growth and Challenges in Earnings Call

Universal Health Services’ recent earnings call reflected a balanced sentiment, highlighting both promising developments and significant challenges. The company reported an increase in EPS guidance and growth in its behavioral health segment, yet faced issues such as declining cash flow, start-up challenges at Cedar Hill, and potential impacts from Medicaid legislation. The tone was one of cautious optimism, with plans in place to address these hurdles while capitalizing on growth opportunities.