Universal Health (UHS) AI Stock Analysis

• Market Cap: $10.62B
• Dividend Yield: 0.51%
• Average Volume (3M): 906.67K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.74
• Revenue Growth: 9.73%
• EPS Growth: 51.87%
• Country: US
• Employees: 99,300
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): 4.84
• Shares Outstanding: 57,189,716
• 10 Day Avg. Volume: 817,279
• 30 Day Avg. Volume: 906,675
• PEG Ratio: 1.76
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.19
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $223.67
• Price Target Upside: 43.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $197.00 ▲(26.72%Upside)

Universal Health's strong financial performance and undervaluation are significant factors driving its stock score. Despite mixed technical signals and some risks highlighted in the earnings call, the company's robust financial health and consistent growth position it well for future performance.

Positive Factors

Financial Estimates

Recently approved Tennessee Directed Payment Program contributes positively to financial estimates.

New Hospital Performance

Stronger contribution from UHS' new NV West Henderson hospital, ramping faster than historical averages.

Stock Valuation

The stock is trading toward the low end of its valuation, suggesting potential for upward movement.

Negative Factors

Headwinds to EBITDA Growth

Analyst anticipates an annual 2-3% headwind to EBITDA growth through 2030 due to reductions in coverage and additional cuts ramping up in the future.

Medicaid and ACA Exchange Cuts

Analyst downgrades UHS from Neutral to Underperform due to increasing headwinds from cuts to Medicaid and ACA exchanges.

Reconciliation Bill Impact

The passage of significant cuts to Medicaid and Exchanges in the Reconciliation Bill is expected to lead to lower volume growth and increased bad debt for hospitals.

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

Universal Health Services, Inc. generates revenue through its network of acute care hospitals and behavioral health facilities. The primary revenue streams include patient service revenues, which are derived from hospital admissions, outpatient consultations, and various healthcare services provided to patients. UHS also benefits from contracts with government programs like Medicare and Medicaid, as well as agreements with private health insurance companies. The company collaborates with insurers and other healthcare providers to expand its service reach and enhance patient care, which contributes significantly to its earnings. Additionally, UHS's strategic acquisitions and expansions into new markets provide avenues for increased revenue and market share.

Universal Health Financial Statement Overview

Summary

Universal Health exhibits strong financial health characterized by consistent revenue growth, strong profitability, and effective cash flow management. While leverage is moderate, the company’s robust equity position and growing cash flows mitigate risks.

Income Statement

Universal Health has demonstrated consistent revenue growth with a notable increase in total revenue from $11.56 billion in 2020 to $16.08 billion in TTM 2025. The gross profit margin remains robust, indicating effective cost management. Net profit margin has improved, reflecting enhanced operational efficiency. EBIT and EBITDA margins are strong, indicating solid profitability in core operations.

Balance Sheet

The company maintains a healthy equity ratio, with stockholders' equity consistently representing a substantial portion of total assets. The debt-to-equity ratio shows moderate leverage, which is manageable given the company's strong equity base. Return on equity is improving, demonstrating effective use of equity capital.

Cash Flow

Operating cash flow is strong, consistently exceeding net income, indicating good cash conversion. Free cash flow has grown significantly, supporting further investment and debt management. The cash flow metrics reflect strong financial health with ample liquidity to support operations and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.08B	15.83B	14.28B	13.40B	12.64B	11.56B
Gross Profit	9.40B	14.24B	12.75B	11.93B	11.21B	10.27B
EBITDA	2.34B	2.27B	1.74B	1.58B	1.91B	1.87B
Net Income	1.20B	1.14B	717.79M	675.61M	991.59M	943.95M
Balance Sheet
Total Assets	14.88B	14.47B	13.97B	13.49B	13.09B	13.48B
Cash, Cash Equivalents and Short-Term Investments	126.75M	125.98M	119.44M	102.82M	115.30M	1.22B
Total Debt	5.09B	4.96B	5.37B	5.27B	4.56B	4.19B
Total Liabilities	7.99B	7.71B	7.77B	7.52B	6.90B	7.07B
Stockholders Equity	6.87B	6.75B	6.15B	5.92B	6.09B	6.32B
Cash Flow
Free Cash Flow	1.06B	1.12B	524.74M	262.02M	28.04M	1.63B
Operating Cash Flow	2.03B	2.07B	1.27B	996.02M	883.70M	2.36B
Investing Cash Flow	-987.77M	-911.11M	-763.27M	-647.30M	-914.47M	-802.56M
Financing Cash Flow	-1.03B	-1.14B	-493.94M	-318.40M	-1.07B	-384.86M

Universal Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 155.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UHS, the sentiment is Negative. The current price of 155.46 is below the 20-day moving average (MA) of 176.48, below the 50-day MA of 180.82, and below the 200-day MA of 187.15, indicating a bearish trend. The MACD of -4.74 indicates Positive momentum. The RSI at 25.74 is Positive, neither overbought nor oversold. The STOCH value of 7.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UHS.

Universal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMS	77 Outperform	$15.78B	23.96	4.36%	0.10%	-0.91%	27.17%
UHS	73 Outperform	$10.62B	9.26	18.35%	0.51%	9.73%	51.87%
DVA	70 Outperform	$11.42B	14.98	260.92%	―	5.11%	14.28%
HCA	67 Neutral	$84.99B	15.70	-230.22%	0.81%	7.30%	11.60%
THC	67 Neutral	$14.70B	10.13	41.09%	―	-1.09%	-43.10%
EHC	65 Neutral	$10.96B	22.45	25.33%	0.63%	11.21%	30.38%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%

Universal Health Corporate Events

Universal Health Holds Annual Stockholders Meeting

On May 14, 2025, Universal Health held its Annual Meeting of Stockholders virtually. During the meeting, stockholders elected two Class II members to the Board of Directors for a term ending in 2028, ratified PricewaterhouseCoopers, LLP as the independent accounting firm for 2025, and voted against a proposal for annual director elections.

The most recent analyst rating on (UHS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Universal Health stock, see the UHS Stock Forecast page.