U.s. Physical Therapy (USPH)
NYSE:USPH
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US Physical Therapy
(NYSE:USPH)
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Rating:62Neutral
Price Target:
$86.00
▲(12.07% Upside)
Action:ReiteratedDate:03/10/26
The score reflects stable-to-improving fundamentals and a positive earnings-call outlook (raised EBITDA guidance and strong operating metrics), tempered by weak near-term technical momentum and a very high P/E that limits valuation support.
Positive Factors
Free Cash Flow
Sustained free cash flow (~$61M TTM) and positive FCF growth give the company durable internal funding for acquisitions, dividends and share buybacks. Strong cash conversion (FCF ~0.82x net income) supports strategic M&A and capital allocation even if near-term revenue fluctuates.
Negative Factors
Medicare Reimbursement Risk
Multi-year Medicare cuts represent a structural margin headwind given Medicare's share of volumes. Modest proposed PFS increases won’t fully offset past reductions, so persistent reimbursement pressure could erode profitability and force reliance on higher commercial rates or deeper cost cuts to sustain earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Sustained free cash flow (~$61M TTM) and positive FCF growth give the company durable internal funding for acquisitions, dividends and share buybacks. Strong cash conversion (FCF ~0.82x net income) supports strategic M&A and capital allocation even if near-term revenue fluctuates.
Read all positive factors
US Physical Therapy (USPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend Yield2.25%
Average Volume (3M)169.59K
Price to Earnings (P/E)78.7
Beta (1Y)1.09
Revenue Growth17.50%
EPS Growth154.28%
CountryUS
Employees4,034
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.67
Shares Outstanding15,122,562
10 Day Avg. Volume128,352
30 Day Avg. Volume169,590
Financial Highlights & Ratios
PEG Ratio-3.45
Price to Book (P/B)2.49
Price to Sales (P/S)1.52
P/FCF Ratio19.43
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue2.28
Enterprise Value/Gross Profit10.28
Enterprise Value/Ebitda14.20
Forecast
1Y Price Target
$100.75Price Target Upside31.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.98
Revenue Forecast (FY)$837.72M
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...
How the Company Makes Money
US Physical Therapy primarily generates revenue through the provision of outpatient physical therapy services, billing both private payers and government programs like Medicare and Medicaid. The company charges for individual therapy sessions and ...
US Physical Therapy Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational momentum: record visits per clinic, robust revenue growth (PT +17.3%, IIP +22.6%), margin expansion (PT margin to 21.1%), and higher adjusted EBITDA with raised full-year guidance. The company successfully managed costs (salaries per visit +0.7%; total operating cost per visit down), realized acquisition synergies (Metro), and is growing new revenue streams (home care, cash-based services). Key headwinds persist—most notably multi-year Medicare reimbursement reductions (aggregate ~$25M profit impact), a payer policy change in Michigan, staffing tightness in some markets, and ongoing implementation and working-capital considerations. However, management demonstrated execution on growth, cost containment, and strategic initiatives and increased guidance, indicating confidence in continued momentum.Positive Updates
Record Visits per Clinic per Day
Average visits per clinic per day reached a company record of 32.7 in Q2 2025, up from 30.6 in prior-year Q2 (≈+6.9%), with monthly averages of 33.0 (Apr), 32.9 (May) and 32.3 (Jun).
Negative Updates
Medicare Cuts Have Material Profit Impact
Cumulative sequential Medicare payment cuts have reduced profit by roughly $25M (aggregate impact). Year-over-year impact is ~$5M–$6M, representing an ~8%–8.5% drag on earnings versus last year. The company absorbed a 2.9% Medicare rate reduction in 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Visits per Clinic per Day
Average visits per clinic per day reached a company record of 32.7 in Q2 2025, up from 30.6 in prior-year Q2 (≈+6.9%), with monthly averages of 33.0 (Apr), 32.9 (May) and 32.3 (Jun).
Read all positive updates
Company Guidance
Management raised full‑year 2025 adjusted EBITDA guidance to $93.0–$97.0 million (up from $88.0–$93.0M, a $4.0M increase at the top and with the prior high end becoming the new low end), reflecting strong Q2 execution: Q2 adjusted EBITDA was $26.9M (up $4.7M YoY) with an adjusted EBITDA margin of 17.5% (vs. 16.4%); a record 32.7 visits per clinic per day (vs. 30.6 LY) and 1,532,263 clinic visits plus 28,493 home‑care visits in Q2 (over 3.0M visits YTD); PT revenue of $168.3M (+17.3% YoY) and PT gross profit margin 21.1% (vs. 20.1%); IIP net revenue +22.6% and gross profit +25.8% (organic IIP revenues +18.4%, gross profit +21.8%); net rate per visit $105.33 (vs. $105.05 LY); salaries and related cost $60.08 per visit (+0.7%) while total operating cost per visit declined YoY; workers’ comp represented 10.4% of net patient revenues with visits +8.4% — all cited as drivers behind the raised guidance.US Physical Therapy Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 780.99M | 671.35M | 604.80M | 553.14M | 495.02M |
| Gross Profit | 157.34M | 123.92M | 121.51M | 112.02M | 117.18M |
| EBITDA | 109.66M | 86.91M | 74.37M | 76.09M | 85.73M |
| Net Income | 15.06M | 26.46M | 14.67M | 28.27M | 27.82M |
Balance Sheet | |||||
| Total Assets | 1.20B | 1.17B | 997.24M | 858.15M | 749.43M |
| Cash, Cash Equivalents and Short-Term Investments | 35.57M | 41.36M | 152.82M | 31.59M | 28.57M |
| Total Debt | 425.74M | 295.23M | 258.59M | 295.34M | 223.08M |
| Total Liabilities | 433.81M | 408.42M | 345.00M | 373.59M | 296.98M |
| Stockholders Equity | 476.43M | 488.93M | 476.19M | 315.79M | 295.61M |
Cash Flow | |||||
| Free Cash Flow | 60.99M | 65.75M | 72.68M | 50.29M | 68.20M |
| Operating Cash Flow | 75.06M | 74.94M | 81.98M | 58.54M | 76.41M |
| Investing Cash Flow | -36.71M | -149.45M | -45.02M | -81.27M | -124.14M |
| Financing Cash Flow | -44.14M | -36.95M | 84.27M | 25.76M | 43.38M |
US Physical Therapy Technical Analysis
Negative
76.74
Price Trends
80.31
Negative
79.07
Negative
80.00
Negative
Market Momentum
-1.77
Negative
39.52
Neutral
46.92
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 76.74 is above the 20-day moving average (MA) of 75.64, below the 50-day MA of 80.31, and below the 200-day MA of 80.00, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 46.92 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 31 risk factors in its most recent earnings report. US Physical Therapy reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.35B | 23.43 | 11.83% | ― | 6.26% | -19.33% | |
72 Outperform | $1.07B | 28.23 | 9.31% | ― | 29.89% | 10.33% | |
62 Neutral | $1.16B | 78.68 | 3.12% | 2.25% | 17.50% | 154.28% | |
62 Neutral | $2.03B | 12.54 | 5.57% | 1.69% | -22.96% | -59.35% | |
54 Neutral | $1.77B | 11.03 | 19.58% | ― | -4.21% | ― | |
52 Neutral | $733.41M | -6.34 | -14.67% | ― | -11.42% | -617.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
USPH
US Physical Therapy
76.74
7.79
11.30%
AMN
AMN Healthcare Services
18.98
-1.73
-8.35%
HCSG
Healthcare Services
19.20
9.15
91.04%
MD
Pediatrix Medical Group
21.38
7.28
51.63%
SEM
Select Medical
16.35
-0.33
-2.01%
PNTG
Pennant Group
31.01
5.82
23.10%
US Physical Therapy Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
U.S. Physical Therapy Updates Investor Presentation, Highlights Growth
Positive
Mar 9, 2026
On March 6, 2026, U.S. Physical Therapy updated its investor presentation, giving shareholders and analysts an expanded overview of its footprint, financial performance and strategic priorities in outpatient rehabilitation and industrial injury pr...
Business Operations and StrategyFinancial Disclosures
US Physical Therapy Posts Strong 2025 Results, Outlines 2026 Strategy
Positive
Mar 4, 2026
On February 26, 2026, U.S. Physical Therapy reported that 2025 was a strong year financially, with adjusted EBITDA up 16.2%, net revenue up 16.3%, and operating income up 18.4% despite ongoing Medicare rate cuts. Patient demand drove record visit ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
US Physical Therapy Posts Strong 2025 Results, Raises Dividend
Positive
Feb 26, 2026
On February 25, 2026, U.S. Physical Therapy reported that for the year ended December 31, 2025, adjusted EBITDA rose 16.2% to $95.0 million and net income attributable to shareholders increased to $39.6 million, while Operating Results per share c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.