US Physical Therapy (USPH) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 2.3%
• Average Volume (3M): 117.92K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.90
• Revenue Growth: 14.30%
• EPS Growth: 76.89%
• Country: US
• Employees: 4,034
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Care Facilities
• EPS (TTM): 0.48
• Shares Outstanding: 15,191,689
• 10 Day Avg. Volume: 144,624
• 30 Day Avg. Volume: 117,918
• PEG Ratio: -0.95
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.92
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 10.47
• Enterprise Value/Ebitda: 4.28
• 1Y Price Target: $107.75
• Price Target Upside: 39.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $83.00 ▲(7.79%Upside)

US Physical Therapy's overall score is propelled by solid financial performance and optimistic earnings call insights, despite mixed technical analysis and valuation concerns. The company's strategic actions and corporate events reinforce stability and growth potential.

Positive Factors

Business Expansion

The acquisition of Metro contributed significantly to revenue growth and expanded the number of clinics beyond expectations.

Financial Performance

Revenue and adjusted EBITDA exceeded both internal estimates and consensus figures, indicating strong financial performance.

Industrial Injury Prevention

The industrial injury prevention business showed substantial growth, contributing positively to the financial results.

Negative Factors

Cash Flow

Cash flow from operations in the quarter was negative, showing a concern in cash management.

Labor Costs

Management continues to contend with labor inflation, as salaries and related costs per visit increased significantly.

Medicare Rate Impact

Management stated that the Medicare rate reduction for 2025 would likely negatively impact adjusted EBITDA by approximately $5.7 million.

US Physical Therapy Business Overview & Revenue Model

Company Description

U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It operates through two segments, Physical Therapy Operations and Industrial Injury Prevention Services. The company offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors. As of December 31, 2021, it operated 591 clinics in 39 states; and managed 35 physical therapy practice facilities. The company was founded in 1990 and is based in Houston, Texas.

How the Company Makes Money

US Physical Therapy makes money by operating outpatient physical therapy clinics across the United States. The company generates revenue primarily through the provision of physical and occupational therapy services to patients. These services are typically billed to patients, insurance companies, and other third-party payors. The company's revenue streams are heavily influenced by reimbursement rates from Medicare, Medicaid, and private health insurance providers. Additionally, USPH often enters into partnerships or joint ventures with other healthcare providers, which can contribute to its earnings by expanding its reach and patient base. The company's ability to effectively manage its clinic operations and maintain strong relationships with referring physicians also plays a crucial role in its financial performance.

US Physical Therapy Financial Statement Overview

Summary

US Physical Therapy exhibits solid financial health with robust revenue growth and efficient cash flow generation. The company maintains a conservative leverage profile and a balanced capital structure, though it faces minor profitability challenges from cost pressures.

Income Statement

The company shows a strong Gross Profit Margin of 18.8% and a healthy EBIT Margin of 10.3% for TTM (Trailing-Twelve-Months). The Net Profit Margin stands at 4.5%, indicating moderate profitability. Revenue growth from 2024 to TTM is 19.2%, reflecting substantial top-line expansion. However, the slight decrease in Gross Profit Margin from the previous year indicates potential cost pressures.

Balance Sheet

The Debt-to-Equity Ratio is 0.30, suggesting a conservative leverage level, which is favorable for financial stability. The Return on Equity (ROE) is 6.0%, indicating moderate efficiency in generating returns from equity. The Equity Ratio of 42.1% reflects a balanced capital structure, though the declining trend in Stockholders' Equity could be a concern if it continues.

Cash Flow

The company demonstrates strong Free Cash Flow growth of 6.2%, and an excellent Operating Cash Flow to Net Income ratio of 2.22 for TTM, highlighting efficient cash generation capabilities. The Free Cash Flow to Net Income ratio is 1.88, reinforcing the robustness of cash flows relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
514.36M	560.55M	604.80M	553.14M	495.02M	422.97M
	Gross Profit
117.87M	123.92M	111.99M	112.02M	117.18M	94.45M
	EBIT
37.73M	63.21M	69.56M	56.80M	76.77M	52.41M
	EBITDA
87.82M	86.91M	74.37M	76.09M	85.73M	77.68M
	Net Income Common Stockholders
40.37M	26.46M	14.67M	43.41M	57.92M	52.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.55M	41.36M	152.82M	31.59M	28.57M	32.92M
	Total Assets
643.25M	1.17B	997.24M	858.15M	749.43M	594.36M
	Total Debt
208.73M	295.23M	258.59M	295.34M	223.08M	110.99M
	Net Debt
119.18M	253.87M	105.76M	263.74M	194.51M	78.07M
	Total Liabilities
260.45M	408.42M	345.00M	373.59M	296.98M	184.39M
	Stockholders Equity
241.06M	488.93M	476.19M	315.79M	295.61M	276.16M
Cash Flow		Free Cash Flow
61.26M	65.75M	72.68M	50.29M	68.20M	92.36M
	Operating Cash Flow
70.38M	74.94M	81.98M	58.54M	76.41M	100.00M
	Investing Cash Flow
-126.88M	-149.45M	-45.02M	-81.27M	-124.14M	-51.20M
	Financing Cash Flow
62.79M	-36.95M	84.27M	25.76M	43.38M	-39.42M

US Physical Therapy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USPH, the sentiment is Positive. The current price of 77 is above the 20-day moving average (MA) of 76.67, above the 50-day MA of 72.73, and below the 200-day MA of 81.92, indicating a neutral trend. The MACD of 1.16 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USPH.

US Physical Therapy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	76 Outperform	$1.62B	15.15	11.19%	2.33%	19.16%	31.92%
USPH	70 Outperform	$1.19B	35.96	6.72%	2.30%	14.30%	76.89%
PNTG	69 Neutral	$977.20M	36.07	11.28%	―	30.04%	43.47%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
AVAH	53 Neutral	$1.02B	291.95	42.49%	―	9.05%	―
AMN	45 Neutral	$844.17M	18.62	-21.08%	―	-18.13%	-215.78%

US Physical Therapy Corporate Events

US Physical Therapy Approves Key Proposals at Meeting

On May 20, 2025, U.S. Physical Therapy, Inc. held its annual shareholders meeting where three key proposals were approved. The election of eight directors, an advisory vote on executive compensation, and the ratification of Grant Thornton LLP as the independent accounting firm for 2024 were all passed, indicating continued stability and strategic direction for the company.

The most recent analyst rating on (USPH) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on US Physical Therapy stock, see the USPH Stock Forecast page.

US Physical Therapy Discusses Q1 2025 Financial Results

On May 8, 2025, U.S. Physical Therapy, Inc. held a conference call and webcast to discuss its financial results for the first quarter ending March 31, 2025. The event provided insights into the company’s operational performance and strategic positioning, although the details of the call are not considered filed under the Securities Exchange Act of 1934.

The most recent analyst rating on (USPH) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on US Physical Therapy stock, see the USPH Stock Forecast page.

US Physical Therapy Reports Strong Q1 2025 Results

U.S. Physical Therapy, Inc. reported strong financial results for the first quarter of 2025, with a 16.5% increase in adjusted EBITDA and a 16.4% rise in total revenue from physical therapy operations compared to the same period in 2024. The company saw record patient volume, with average daily visits per clinic reaching an all-time high, and continued to expand its clinic network through acquisitions and openings, despite challenges such as a Medicare rate reduction.

US Physical Therapy Approves New Executive Incentive Plans

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.