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U.s. Physical Therapy (USPH)
NYSE:USPH
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US Physical Therapy (USPH) AI Stock Analysis

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USPH

US Physical Therapy

(NYSE:USPH)

Rating:71Outperform
Price Target:
$98.00
▲(14.43% Upside)
US Physical Therapy's overall stock score is driven by strong financial performance and positive earnings call highlights. The company's robust cash flow and operational efficiency are significant strengths. However, the high P/E ratio and overbought technical indicators suggest caution. The positive earnings call and increased guidance provide a strong outlook, balancing the valuation concerns.
Positive Factors
Earnings
U.S. Physical Therapy delivered strong Q2 results with patient visits at an all-time high and exceptional cash flows.
Financial Performance
The company increased its FY/25 EBITDA guidance, indicating confidence in future financial performance.
Market Position
Analyst maintains an OUTPERFORM investment rating on USPH shares and raises the price target to $103.
Revenue Growth
The industrial injury prevention business is showing strong top-line growth with a revenue run rate of around $110 million and high gross margins.
Negative Factors
Cash Management
Cash flow from operations in the quarter was negative, showing a concern in cash management.
Labor Dynamics
The industry faces a well-telegraphed shortage of physical therapists, with a projected supply shortfall impacting labor dynamics.

US Physical Therapy (USPH) vs. SPDR S&P 500 ETF (SPY)

US Physical Therapy Business Overview & Revenue Model

Company DescriptionUS Physical Therapy, Inc. (USPH) is a leading provider of outpatient physical therapy and related healthcare services in the United States. The company operates a network of physical and occupational therapy clinics across various states, focusing on delivering high-quality rehabilitation services to patients recovering from injuries, surgeries, and chronic conditions. USPH also engages in physical therapy management services and has partnerships with numerous hospitals and healthcare systems, which enhances its service offerings and market reach.
How the Company Makes MoneyUS 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a largely positive sentiment, with significant revenue growth, record operational metrics, and improved guidance. However, challenges remain with Medicare rate reductions and staffing issues in some markets.
Q2-2025 Updates
Positive Updates
Record Visits Per Clinic
Achieved a company record of 32.7 average visits per clinic per day, the highest in company history.
Strong Revenue Growth
Physical therapy revenues increased by 17.3% to $168.3 million compared to the same period last year.
Injury Prevention Revenue Surge
Injury prevention net revenues increased by 22.6% compared to the second quarter of 2024.
Net Promoter Score Achievement
Achieved a Net Promoter Score of 93.5, significantly higher than the excellent benchmark of 50 for healthcare companies.
Positive Adjusted EBITDA Growth
Adjusted EBITDA increased to $26.9 million, up $4.7 million from the second quarter of last year.
Increased Guidance
Raised full-year 2025 adjusted EBITDA guidance to a range of $93 million to $97 million.
Negative Updates
Medicare Rate Headwinds
Continued impact from Medicare rate reductions, with a $25 million impact from stacked cuts.
Staffing Challenges in Certain Markets
Some markets still facing staffing tightness affecting same-store growth in mature facilities.
Impact of Michigan Payer Policy Change
Largest payer in Michigan implemented a policy change negatively impacting net rate.
Company Guidance
During the U.S. Physical Therapy Second Quarter 2025 Earnings Call, the company increased its full-year adjusted EBITDA guidance to a range of $93 million to $97 million, reflecting strong performance and growth. The company achieved a record average of 32.7 visits per clinic per day, up from 30.6 in the previous year, and reported a Net Promoter Score of 93.5, indicating high patient satisfaction. Revenues in physical therapy increased by 17.3%, and industrial injury prevention revenues grew by 22.6%. Despite a slight increase in salaries and related costs by 0.7%, the overall operating cost per visit decreased. The company added over 50 net clinics year-over-year and exceeded 3 million visits in the first half of the year. Gross profit margins improved to 21.1%, and adjusted EBITDA for the quarter was $26.9 million, up from $22.2 million last year. The company also announced a share repurchase program of up to $25 million through 2026.

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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue665.21M671.35M604.80M553.14M495.02M422.97M
Gross Profit135.52M123.92M111.99M112.02M117.18M94.45M
EBITDA101.40M86.91M74.37M76.09M85.73M77.68M
Net Income31.68M26.46M14.67M43.41M57.92M52.49M
Balance Sheet
Total Assets1.18B1.17B997.24M858.15M749.43M594.36M
Cash, Cash Equivalents and Short-Term Investments34.09M41.36M152.82M31.59M28.57M32.92M
Total Debt305.40M295.23M258.59M295.34M223.08M110.99M
Total Liabilities414.01M408.42M345.00M373.59M296.98M184.39M
Stockholders Equity500.75M488.93M476.19M315.79M295.61M276.16M
Cash Flow
Free Cash Flow60.87M65.75M72.68M50.29M68.20M92.36M
Operating Cash Flow71.72M74.94M81.98M58.54M76.41M100.00M
Investing Cash Flow-120.03M-149.45M-45.02M-81.27M-124.14M-51.20M
Financing Cash Flow-30.51M-36.95M84.27M25.76M43.38M-39.42M

US Physical Therapy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price85.64
Price Trends
50DMA
79.27
Positive
100DMA
76.45
Positive
200DMA
80.44
Positive
Market Momentum
MACD
1.68
Positive
RSI
59.40
Neutral
STOCH
46.00
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 85.64 is above the 20-day moving average (MA) of 85.07, above the 50-day MA of 79.27, and above the 200-day MA of 80.44, indicating a bullish trend. The MACD of 1.68 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 46.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.30B37.547.02%2.09%16.24%116.58%
71
Outperform
$832.25M31.0611.44%30.58%24.86%
69
Neutral
$1.78B17.1710.65%2.15%25.19%13.44%
59
Neutral
$1.69B109.3142.49%11.53%
56
Neutral
$775.30M18.62-40.13%-14.33%-398.68%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
USPH
US Physical Therapy
85.64
3.72
4.54%
AMN
AMN Healthcare Services
20.85
-24.85
-54.38%
NHC
National Healthcare
114.94
-3.57
-3.01%
PNTG
Pennant Group
24.29
-8.08
-24.96%
AVAH
Aveanna Healthcare Holdings
8.22
2.74
50.00%

US Physical Therapy Corporate Events

Business Operations and Strategy
US Physical Therapy Updates Investor Presentation
Neutral
Aug 12, 2025

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.

Financial DisclosuresRegulatory Filings and Compliance
US Physical Therapy Discusses Q2 2025 Financial Results
Neutral
Aug 11, 2025

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.

Business Operations and StrategyFinancial Disclosures
US Physical Therapy Reports Record Q2 2025 Results
Positive
Aug 7, 2025

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.

Executive/Board ChangesShareholder Meetings
US Physical Therapy Approves Key Proposals at Meeting
Positive
May 20, 2025

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.

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.Date of analysis: Aug 14, 2025