Universal Health (UHS) AI Stock Analysis

• Market Cap: $14.21B
• Dividend Yield: 0.35%
• Average Volume (3M): 680.06K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.69
• 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: 55,233,700
• 10 Day Avg. Volume: 751,330
• 30 Day Avg. Volume: 680,060
• 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: 1.28
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 7.03
• 1Y Price Target: $250.14
• Price Target Upside: 9.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 21.65
• Revenue Forecast (FY): $17.37B

• Rating: 74 Outperform
• Price Target: $253.00 ▲(11.23% Upside)

Universal Health Services demonstrates strong financial performance and attractive valuation, which are the primary drivers of its overall score. The technical analysis presents a mixed picture, with some short-term weaknesses. The earnings call provided a positive outlook, although legal challenges pose a risk. Overall, the stock is positioned well within its industry, but investors should be mindful of ongoing legal proceedings.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective pricing strategies and expanding service reach, supporting long-term financial stability.

Cash Flow Generation

Enhanced cash flow generation strengthens financial flexibility, enabling strategic investments and debt management.

New Hospital Openings

New hospital openings expand service capacity and market presence, driving future revenue and competitive positioning.

Negative Factors

Legal Challenges

Significant legal challenges can lead to financial liabilities and reputational risks, affecting long-term profitability.

Behavioral Health Segment Growth

Limited growth in the behavioral health segment may hinder overall revenue expansion and market share in this area.

Pending Medicaid Approvals

Pending Medicaid approvals could delay anticipated revenue benefits, impacting financial forecasts and operational planning.

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 the provision of healthcare services, which includes patient admissions to its hospitals and facilities. The company earns money from private payers, government programs such as Medicare and Medicaid, and self-pay patients. Key revenue streams include inpatient and outpatient services, emergency room visits, and behavioral health services. Additionally, UHS benefits from partnerships with insurance companies and health systems that facilitate patient referrals and care coordination. The company also invests in new facility developments and expansions, which contribute to its long-term revenue growth. Furthermore, UHS's focus on operational efficiency and cost management helps enhance its profitability.

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	2.58B	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	949.59M	1.12B	524.74M	262.02M	28.04M	1.63B
Operating Cash Flow	1.95B	2.07B	1.27B	996.02M	883.70M	2.36B
Investing Cash Flow	-1.05B	-911.11M	-763.27M	-647.30M	-914.47M	-802.56M
Financing Cash Flow	-880.35M	-1.14B	-493.94M	-318.40M	-1.07B	-384.86M

Universal Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 227.46 is below the 20-day moving average (MA) of 230.72, above the 50-day MA of 222.48, and above the 200-day MA of 191.10, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 53.13 is Neutral, 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	74 Outperform	$14.21B	10.81	19.97%	0.35%	10.21%	39.58%
THC	74 Outperform	$17.25B	13.46	34.51%	―	-0.56%	-53.50%
HCA	70 Neutral	$107.93B	18.28	―	0.61%	6.82%	15.82%
FMS	65 Neutral	$13.73B	17.06	5.31%	3.35%	4.09%	13.17%
EHC	64 Neutral	$10.70B	20.11	24.94%	0.66%	11.13%	27.53%
DVA	59 Neutral	$8.13B	11.86	―	―	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 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.