US Physical Therapy (USPH) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: 2.15%
• Average Volume (3M): 135.28K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 1.01
• Revenue Growth: 16.24%
• EPS Growth: 116.58%
• Country: US
• Employees: 4,034
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.81
• Shares Outstanding: 15,204,119
• 10 Day Avg. Volume: 146,062
• 30 Day Avg. Volume: 135,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 12.73
• Enterprise Value/Ebitda: 17.01
• 1Y Price Target: $104.00
• Price Target Upside: 24.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $90.00 ▲(7.91% Upside)

US Physical Therapy's overall score reflects strong earnings call outcomes and stable financial performance, despite valuation concerns and technical indicators suggesting caution. The company's ability to generate cash flow and improve operational metrics supports its growth potential, while challenges like Medicare rate reductions and staffing issues pose risks.

Positive Factors

Revenue Growth

The 17.3% increase in physical therapy revenues indicates strong demand and effective market penetration, supporting long-term growth potential and competitive positioning in the healthcare services industry.

Operational Efficiency

Record-high clinic visits per day demonstrate operational efficiency and capacity utilization, enhancing profitability and supporting sustainable growth.

Cash Flow Generation

The 8.54% growth in free cash flow highlights strong cash generation, providing financial flexibility for reinvestment and strategic initiatives.

Negative Factors

Medicare Rate Reductions

Ongoing Medicare rate reductions pose a significant risk to revenue and profitability, potentially impacting long-term financial stability and growth.

Staffing Challenges

Staffing challenges in certain markets can hinder operational efficiency and growth, affecting service delivery and patient satisfaction over time.

Policy Change Impact

Policy changes by major payers, such as in Michigan, can adversely affect reimbursement rates, impacting revenue and profitability in key markets.

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 generates revenue primarily through the provision of outpatient physical therapy services. The company's revenue model is based on billing insurance companies and patients for therapy sessions, which typically involve direct billing to Medicare, Medicaid, and private health insurance plans. Key revenue streams include reimbursement for therapy services provided, management fees from clinics that are part of its network, and income from ancillary services such as diagnostic imaging. Additionally, USPH's strategic partnerships with healthcare providers and hospitals contribute to its earnings by increasing patient referrals and expanding its service offerings, thereby enhancing its overall financial performance.

US Physical Therapy Financial Statement Overview

Summary

US Physical Therapy presents a stable financial profile with strengths in cash flow generation and operational efficiency. The income statement shows some revenue growth challenges, but the balance sheet remains robust with manageable leverage. The company's ability to generate cash flow supports its financial health, positioning it well for future growth opportunities.

Income Statement

US Physical Therapy's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains a healthy gross profit margin of 20.37% and a net profit margin of 4.76%. The EBIT and EBITDA margins are also stable, suggesting efficient operations. However, the negative revenue growth rate in the latest period is a concern.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.61, indicating manageable leverage. The return on equity (ROE) is 6.43%, which is modest but shows improvement over previous periods. The equity ratio is stable, suggesting a balanced asset structure. Overall, the company maintains a solid balance sheet with room for improvement in equity returns.

Cash Flow

Cash flow analysis reveals a positive trajectory with an 8.54% growth in free cash flow. The operating cash flow to net income ratio is 0.60, and the free cash flow to net income ratio is 0.85, indicating strong cash generation relative to earnings. The company demonstrates effective cash management, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	665.21M	671.35M	604.80M	553.14M	495.02M	422.97M
Gross Profit	135.52M	123.92M	111.99M	112.02M	117.18M	94.45M
EBITDA	101.40M	86.91M	74.37M	76.09M	85.73M	77.68M
Net Income	31.68M	26.46M	14.67M	43.41M	57.92M	52.49M
Balance Sheet
Total Assets	1.18B	1.17B	997.24M	858.15M	749.43M	594.36M
Cash, Cash Equivalents and Short-Term Investments	34.09M	41.36M	152.82M	31.59M	28.57M	32.92M
Total Debt	305.40M	295.23M	258.59M	295.34M	223.08M	110.99M
Total Liabilities	414.01M	408.42M	345.00M	373.59M	296.98M	184.39M
Stockholders Equity	500.75M	488.93M	476.19M	315.79M	295.61M	276.16M
Cash Flow
Free Cash Flow	60.87M	65.75M	72.68M	50.29M	68.20M	92.36M
Operating Cash Flow	71.72M	74.94M	81.98M	58.54M	76.41M	100.00M
Investing Cash Flow	-120.03M	-149.45M	-45.02M	-81.27M	-124.14M	-51.20M
Financing Cash Flow	-30.51M	-36.95M	84.27M	25.76M	43.38M	-39.42M

US Physical Therapy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 83.4 is above the 20-day moving average (MA) of 81.83, above the 50-day MA of 80.52, and above the 200-day MA of 79.42, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 is Negative, 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
MD	77 Outperform	1.42B	12.67	13.18%	―	-3.08%	―
PNTG	74 Outperform	877.87M	32.48	8.56%	―	30.58%	24.86%
USPH	70 Outperform	$1.27B	36.10	7.02%	2.15%	16.24%	116.58%
SEM	69 Neutral	1.57B	11.63	8.21%	2.02%	-16.10%	-48.97%
HCSG	68 Neutral	1.18B	115.62	2.27%	―	5.17%	-65.33%
AMN	54 Neutral	723.18M	-2.43	-49.02%	―	-14.33%	-398.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

US Physical Therapy Corporate Events

US Physical Therapy Updates Investor Presentation

On August 12, 2025, U.S. Physical Therapy Inc. updated its investor presentation, which is available on the company’s website. The update provides an overview of the company, but the information is not considered filed under the Securities Exchange Act of 1934 and is not incorporated by reference into any other filings.

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 Q2 2025 Financial Results

On August 7, 2025, U.S. Physical Therapy Inc. held a conference call and webcast to discuss its financial results for the three and six months ended June 30, 2025. The transcript of the call was made available as part of a Current Report on Form 8-K, although it will not be considered filed for purposes of 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 Record Q2 2025 Results

On August 6, 2025, U.S. Physical Therapy, Inc. reported record results for the second quarter of 2025, with significant increases in patient visits and revenue. The company saw a 21.4% rise in Adjusted EBITDA to $26.9 million and a 17.3% increase in total revenue to $168.3 million, driven by higher patient visits and strategic acquisitions. The company also raised its full-year 2025 guidance for Adjusted EBITDA, reflecting strong operational performance and growth in its injury prevention business.

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.