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U.s. Physical Therapy (USPH)
NYSE:USPH
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US Physical Therapy
(NYSE:USPH)
63Neutral
Positive Factors
Acquisition Impact
The acquisition of Metro contributed significantly to revenue growth and expanded the number of clinics beyond expectations.
Dividend Increase
The board increased the quarterly dividend rate, reflecting confidence in the company's financial health and future prospects.
Revenue Growth
Total revenue of $180 million grew 16.5% from the prior-year period and marked a modest 3% beat on the $175 million consensus; the top-line performance was driven primarily by solid core volume trends as demand remains strong.
Negative Factors
Cost Increase
Management continues to contend with labor inflation, as salaries and related costs per visit increased significantly.
Earnings Miss
Adjusted EPS of $0.51 came in light versus the expectation of $0.56.
Earnings Pressure
Management stated that the Medicare rate reduction for 2025 would likely negatively impact adjusted EBITDA by approximately $5.7 million.
US Physical Therapy (USPH) vs. S&P 500 (SPY)
Market Cap
$1.02B
Dividend Yield2.64%
Average Volume (3M)128.92K
Price to Earnings (P/E)36.5
Beta (1Y)0.82
Revenue Growth11.00%
EPS Growth37.38%
CountryUS
Employees4,034
SectorHealthcare
Sector Strength77
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.84
Shares Outstanding15,191,689
10 Day Avg. Volume103,581
30 Day Avg. Volume128,916
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)N/A
Price to Sales (P/S)1.71
Price to Cash Flow (P/CF)12.50
P/FCF Ratio14.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$108.25Price Target Upside66.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
US Physical Therapy Business Overview & Revenue Model
Company DescriptionU.S. Physical Therapy, Inc. (USPH) is a leading national operator of outpatient physical therapy clinics in the United States. The company operates across various sectors within the healthcare industry, focusing on providing physical therapy services to patients with a wide range of musculoskeletal conditions. USPH's core services include treatment for orthopedic disorders, sports-related injuries, and preventative care, aiming to improve patients' mobility and overall quality of life.
How the Company Makes MoneyUSPH generates revenue primarily through the operation of its outpatient physical therapy clinics, where they charge patients or their insurers for therapy sessions and related services. The company's key revenue streams include payments from private insurance companies, Medicare, Medicaid, and direct payments from patients. Additionally, USPH may enter into partnerships or joint ventures with healthcare providers or organizations to expand their service offerings and reach, potentially contributing to their earnings. A significant factor in their revenue generation includes maintaining strong relationships with referral sources such as physicians, hospitals, and other healthcare facilities to ensure a steady flow of patients into their clinics.
US Physical Therapy Financial Statement Overview
Summary
US Physical Therapy demonstrates solid revenue growth and effective cost management, but its net income fluctuations and rising debt levels warrant attention. Strong cash flow performance provides a cushion, yet inconsistent free cash flow growth could pose challenges. Overall, the company shows resilience with potential areas for improvement in profitability and debt management.Income Statement
The company shows consistent revenue growth over the years, although there was a slight dip in 2024. Gross profit margin has been relatively stable, indicating effective cost management. However, net profit margin dropped significantly in 2024 due to a lower net income, which could be a concern if it persists.75
Positive
Balance Sheet
The company's debt-to-equity ratio is manageable, but there is an increasing trend in total debt over recent years. Return on equity has been volatile, showing potential instability in generating profits from equity. The equity ratio indicates a reasonable level of financial stability.68
Positive
Cash Flow
The operating cash flow has remained strong, but free cash flow growth appears inconsistent. The company maintains a healthy free cash flow to net income ratio, suggesting good cash generation relative to its net income.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 560.55M | 604.80M | 553.14M | 495.02M | 422.97M | Gross Profit |
| 123.92M | 111.99M | 112.02M | 117.18M | 94.45M | EBIT |
| 63.21M | 69.56M | 56.80M | 76.77M | 52.41M | EBITDA |
| 86.91M | 74.37M | 76.09M | 85.73M | 77.68M | Net Income Common Stockholders |
| 26.46M | 14.67M | 43.41M | 57.92M | 52.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.36M | 152.82M | 31.59M | 28.57M | 32.92M | Total Assets |
| 1.17B | 997.24M | 858.15M | 749.43M | 594.36M | Total Debt |
| 153.60M | 258.59M | 295.34M | 223.08M | 110.99M | Net Debt |
| 112.24M | 105.76M | 263.74M | 194.51M | 78.07M | Total Liabilities |
| 408.42M | 345.00M | 373.59M | 296.98M | 184.39M | Stockholders Equity |
| 488.93M | 476.19M | 315.79M | 295.61M | 276.16M |
| Cash Flow | Free Cash Flow | |||
| 65.75M | 72.68M | 50.29M | 68.20M | 92.36M | Operating Cash Flow |
| 74.94M | 81.98M | 58.54M | 76.41M | 100.00M | Investing Cash Flow |
| -149.45M | -45.02M | -81.27M | -124.14M | -51.20M | Financing Cash Flow |
| -36.95M | 84.27M | 25.76M | 43.38M | -39.42M |
US Physical Therapy Technical Analysis
Negative
65.08
Price Trends
80.10
Negative
86.02
Negative
86.15
Negative
Market Momentum
-2.98
Positive
27.98
Positive
28.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USPH, the sentiment is Negative. The current price of 65.08 is below the 20-day moving average (MA) of 72.76, below the 50-day MA of 80.10, and below the 200-day MA of 86.15, indicating a bearish trend. The MACD of -2.98 indicates Positive momentum. The RSI at 27.98 is Positive, neither overbought nor oversold. The STOCH value of 28.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USPH.
US Physical Therapy Risk Analysis
US Physical Therapy disclosed 30 risk factors in its most recent earnings report. US Physical Therapy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
US Physical Therapy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $81.65B | 15.07 | -230.22% | 0.81% | 8.67% | 15.32% | |
72 Outperform | $9.89B | 21.97 | 24.52% | 0.65% | 11.91% | 28.47% | |
63 Neutral | $1.02B | 36.45 | 5.75% | 2.64% | 11.00% | 37.38% | |
61 Neutral | $2.54B | 9.52 | 8.73% | ― | 7.69% | ― | |
61 Neutral | $2.73B | 10.57 | 54.39% | ― | 624.05% | ― | |
48 Neutral | $6.35B | 1.19 | -46.87% | 2.63% | 17.16% | 1.34% | |
47 Neutral | $543.59M | ― | -2.57% | ― | 4.12% | -29.74% |
* Healthcare Sector Average
Performance Comparison
USPH
US Physical Therapy
65.08
-39.58
-37.82%
ACHC
Acadia Healthcare
26.42
-49.97
-65.41%
AOSL
Alpha and Omega
19.32
-3.86
-16.65%
HCA
HCA Healthcare
329.63
3.36
1.03%
EHC
Encompass Health
97.91
16.53
20.31%
PTGX
Protagonist Therapeutics
43.21
14.08
48.34%
US Physical Therapy Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -25.38% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong patient volume growth, successful acquisitions, and significant revenue increases. However, challenges in cost management and Medicare rate reductions presented notable headwinds. Overall, the company is optimistic about overcoming these challenges with strategic initiatives.Highlights
Increased Patient Volume and Visits Per Clinic
In the fourth quarter, visits per clinic per day reached a new high of 31.7 compared to 29.9 in the prior year's quarter. Total patient volume grew 13% year over year.
Revenue and Profit Growth
For the fourth quarter, revenue grew more than 32%, with a full year revenue growth of nearly 24%. Gross profit increased 21.5% for the year.
Record Adjusted EBITDA
Adjusted EBITDA for the fourth quarter of 2024 was $21.8 million, compared to $19 million in the prior year.
Successful Expansion and Acquisitions
Seven acquisitions were completed in 2024, adding approximately seventy clinics through acquisitions and de novo locations.
Injury Prevention Business Growth
IIP segment revenues were up 32.1% in Q4 2024 over the prior year, with full-year revenues up 23.8%.
High Net Promoter and Google Care Ratings
The network achieved a net promoter score of 93 and Google Care ratings of 4.9, indicating high patient satisfaction.
Lowlights
Cost Management Challenges
The company faced difficulties in managing costs due to a competitive environment for hiring therapists, impacting cost per visit.
Medicare Rate Reduction Impact
The 2024 Medicare rate reduction negatively affected the financials, with a further 2.9% reduction expected in 2025.
Lower Physical Therapy Margin
PT margin was 17.9% in Q4 2024 compared to 19.5% in Q4 2023, with acquisitions contributing to the margin compression.
Mixed Impact from Metro Acquisition
The Metro acquisition had a lower average rate of $102.04, which impacted the overall net rate negatively.
Company Guidance
During the U.S. Physical Therapy Fourth Quarter 2024 and Full Year Earnings Conference Call, the company provided guidance and highlighted several key metrics. The company reported a record high average of 31.7 visits per clinic per day in Q4, up from 29.9 in the previous year, with total patient volume growing by 13% year-over-year. Despite a 1.8% Medicare rate reduction, the net rate per visit increased to $104.73 due to recontracting efforts and growth in workers' compensation volume. Full-year revenue grew nearly 24%, with Q4 revenue alone up 32%. The company completed seven acquisitions, adding approximately 70 clinics, and plans to continue focusing on acquisitions as a primary capital allocation strategy. For 2025, the company expects full-year EBITDA to be between $88 million and $93 million, despite facing a 2.9% Medicare rate reduction that impacts revenue and EBITDA. The guidance reflects anticipated growth from recent acquisitions, payer rate increases, and continued expansion in the injury prevention business. The company is also piloting AI-driven technology to enhance clinician efficiency and is exploring virtual staffing to reduce overhead costs.US Physical Therapy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
US Physical Therapy Approves New Executive Incentive Plans
Positive
Mar 28, 2025
On March 26, 2025, U.S. Physical Therapy, Inc. announced the approval of new incentive plans for its senior management, effective immediately. These plans include an Objective Long-Term Incentive Plan (LTIP) and a Discretionary LTIP, both offering Restricted Stock Awards (RSAs) based on performance metrics such as Adjusted EBITDA. The plans aim to align executives’ interests with shareholders by granting RSAs that vest over four years, starting in 2026, contingent on continued employment and performance goals. This move is expected to enhance executive retention and motivation, potentially impacting the company’s operational efficiency and market competitiveness.
M&A TransactionsBusiness Operations and Strategy
US Physical Therapy Acquires Wyoming Clinics for Expansion
Positive
Mar 3, 2025
On March 3, 2025, U.S. Physical Therapy, Inc. announced the acquisition of a physical therapy practice with three clinics in Wyoming, generating $4.3 million in annual revenues. The company acquired a 65% interest, while the current owners retained a 35% stake. This acquisition is expected to enhance U.S. Physical Therapy’s service offerings in Wyoming, leveraging the strong community relationships established by the new partners.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.