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United Therapeutics (UTHR)
NASDAQ:UTHR
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United Therapeutics
(NASDAQ:UTHR)78Outperform
Positive Factors
Market Position
United Therapeutics remains well-positioned competitively with their established presence in the cardiopulmonary space and growing physician comfort with Tyvaso.
Product Growth Potential
There is a positive outlook on Tyvaso's longer term growth trajectory due to multiple tailwinds, including broader adoption, entrenched use as a key therapy, and potential indication expansion.
Negative Factors
Competitive Pressure
Tyvaso is facing a marketing battle; growth deceleration is expected due to competition from Liquidia's Yutrepia.
Revenue Concerns
The negative stock reaction is likely a function of investor expectations given that UTHR had been delivering positive revenue surprises the past 4-6 quarters and no additional share buybacks were announced.
United Therapeutics (UTHR) vs. S&P 500 (SPY)
Market Cap
$13.82B
Dividend YieldN/A
Average Volume (3M)515.30K
Price to Earnings (P/E)12.8
Beta (1Y)0.77
Revenue Growth23.63%
EPS Growth25.66%
CountryUS
Employees1,168
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)24.60
Shares Outstanding44,912,178
10 Day Avg. Volume775,267
30 Day Avg. Volume515,299
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)4.80
Price to Cash Flow (P/CF)10.10
P/FCF Ratio13.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$387.40Price Target Upside22.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
United Therapeutics Business Overview & Revenue Model
Company DescriptionUnited Therapeutics Corporation is a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening conditions. Headquartered in Silver Spring, Maryland, the company is primarily engaged in the pharmaceutical and biotechnology sectors. Its core products include treatments for pulmonary arterial hypertension (PAH), such as Remodulin, Tyvaso, Orenitram, and Unituxin for pediatric neuroblastoma.
How the Company Makes MoneyUnited Therapeutics generates revenue through the sale of its pharmaceutical products, primarily targeting rare diseases like pulmonary arterial hypertension (PAH). The company earns money by manufacturing and distributing its FDA-approved drugs, including Remodulin, Tyvaso, and Orenitram, which are available in various formulations. These products are sold directly to healthcare providers, specialty pharmacies, and distributors. Additionally, United Therapeutics engages in licensing agreements and collaborations with other biotechnology firms and research institutions to expand its product offerings and enhance its research capabilities, which can also contribute to its revenue streams. The company's financial performance is influenced by factors such as drug pricing, regulatory approvals, and market competition.
United Therapeutics Financial Statement Overview
Summary
United Therapeutics exhibits strong financial performance with significant revenue and profit growth, a robust balance sheet with minimal leverage, and strong cash flow generation. However, attention to past volatility and cash management strategies is necessary for sustained growth.Income Statement
United Therapeutics has demonstrated strong revenue growth with a remarkable increase in total revenue from $1.44 billion in 2019 to $2.88 billion in 2024, showcasing a consistent upward trajectory. The gross profit margin remains high, indicating efficient cost management. The net profit margin has improved significantly, reflecting heightened profitability. However, past volatility, such as negative EBIT in 2019, suggests some historical instability.85
Very Positive
Balance Sheet
The company exhibits a robust balance sheet with a high equity ratio, emphasizing financial stability and low leverage, as evidenced by a debt-to-equity ratio of zero in the latest period. The growing stockholders' equity highlights the company's strengthening financial position. However, the significant cash holdings relative to liabilities could suggest underutilized resources.90
Very Positive
Cash Flow
Operating cash flow has shown consistent growth, reflecting strong operational efficiency. The free cash flow has also increased markedly, supporting the company's capacity for reinvestment and shareholder returns. The operating cash flow to net income ratio is healthy, indicating efficient conversion of income to cash. Nonetheless, fluctuations in investing cash flow suggest potential variability in capital allocation strategies.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.88B | 2.33B | 1.94B | 1.69B | 1.48B | Gross Profit |
| 2.57B | 2.07B | 1.79B | 1.56B | 1.38B | EBIT |
| 1.38B | 1.18B | 979.70M | 555.90M | 593.60M | EBITDA |
| 1.65B | 1.39B | 1.04B | 736.80M | 646.30M | Net Income Common Stockholders |
| 1.20B | 984.80M | 727.30M | 475.80M | 514.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.27B | 2.99B | 4.15B | 3.58B | 2.98B | Total Assets |
| 7.36B | 7.17B | 6.04B | 5.17B | 4.62B | Total Debt |
| 300.00M | 700.00M | 800.00M | 800.00M | 800.00M | Net Debt |
| -1.70B | -507.70M | -161.20M | -94.80M | 61.30M | Total Liabilities |
| 920.00M | 1.18B | 1.25B | 1.21B | 1.22B | Stockholders Equity |
| 6.44B | 5.98B | 4.80B | 3.96B | 3.40B |
| Cash Flow | Free Cash Flow | |||
| 1.08B | 747.60M | 663.70M | 477.40M | 696.40M | Operating Cash Flow |
| 1.33B | 978.00M | 802.50M | 598.20M | 755.70M | Investing Cash Flow |
| 417.20M | -719.60M | -811.50M | -486.90M | -738.50M | Financing Cash Flow |
| -1.25B | -11.90M | 75.40M | 44.80M | -16.90M |
United Therapeutics Technical Analysis
Negative
315.91
Price Trends
354.52
Negative
362.58
Negative
343.87
Negative
Market Momentum
-13.93
Positive
34.44
Neutral
10.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTHR, the sentiment is Negative. The current price of 315.91 is below the 20-day moving average (MA) of 343.60, below the 50-day MA of 354.52, and below the 200-day MA of 343.87, indicating a bearish trend. The MACD of -13.93 indicates Positive momentum. The RSI at 34.44 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTHR.
United Therapeutics Risk Analysis
United Therapeutics disclosed 33 risk factors in its most recent earnings report. United Therapeutics 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
United Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $234.27B | 17.69 | 30.95% | 1.66% | 4.59% | 134.50% | |
78 Outperform | $76.36B | 18.22 | 15.95% | 0.13% | 8.27% | 10.35% | |
78 Outperform | $13.82B | 12.84 | 19.23% | ― | 23.63% | 25.66% | |
75 Outperform | $144.51B | 303.37 | 2.28% | 2.65% | 6.16% | -91.54% | |
75 Outperform | $170.73B | 42.04 | 67.55% | 2.87% | 18.64% | -39.39% | |
64 Neutral | $126.25B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
UTHR
United Therapeutics
315.91
66.40
26.61%
ABT
Abbott Laboratories
137.14
19.35
16.43%
AMGN
Amgen
324.86
57.65
21.57%
GILD
Gilead Sciences
117.41
45.05
62.26%
REGN
Regeneron
707.51
-255.69
-26.55%
VRTX
Vertex Pharmaceuticals
488.29
73.82
17.81%
United Therapeutics Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -11.63% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted United Therapeutics' record-breaking revenue and strong growth across major product lines. The company is progressing well with its innovative clinical trials and strategic capital allocation, despite a slight sequential decline in net revenue for Q4 due to contracting adjustments. The sentiment is largely positive, focusing on future growth and advancements.Highlights
Record Revenue for 2024
United Therapeutics achieved record revenue for the third consecutive year, driven by double-digit growth across major products like Tyvaso, Remodulin, Orenitram, and Unituxin, leading to nearly 24% growth over 2023.
Significant Progress in Clinical Trials
The company began a three-year cascade of clinical and regulatory events, including FDA clearance for the uKidney xenotransplant trial and progress in the Teton 1 and 2 studies for inhaled treprostinil.
Ralinepag Development
Advancements with Ralinepag, a potential first true once-a-day oral prostacyclin agonist for PAH, which could change treatment paradigms.
Strong Performance Across Products
Tyvaso revenue increased 19% YoY for Q4, Orenitram grew 28%, Remodulin grew 17%, and Unituxin revenue increased by 25%.
Successful Capital Allocation
United Therapeutics returned $1 billion to shareholders through an accelerated share repurchase program and invested in infrastructure and acquisitions to support future growth.
Lowlights
Sequential Decline in Net Revenue for Q4
Despite record gross revenue, net revenue for Q4 was slightly down sequentially due to recent contracting efforts for Tyvaso.
Company Guidance
During the United Therapeutics Corporation Fourth Quarter 2024 earnings call, the company reported another record year with approximately 24% revenue growth over 2023, driven by double-digit percent revenue growth in major contributors like Tyvaso, U.S. Remodulin, Orenitram, and Unituxin. The company achieved 20% revenue growth for the quarter compared to the fourth quarter of 2023. Tyvaso revenue for Q4 was $4 million, marking a 19% increase over the previous year. The company also highlighted the commencement of a three-year cascade of clinical and regulatory events, including the uKidney clinical trial and the inhaled treprostinil Teton studies. The uKidney trial, cleared by the FDA, aims to address the needs of end-stage renal disease patients. Additionally, United Therapeutics emphasized its capital allocation strategy, having returned $1 billion to shareholders through an accelerated share repurchase program. The company aims to maintain double-digit revenue growth through the mid-2020s, with potential inflections upon the expected approvals of Ralinepag and inhaled treprostinil for idiopathic pulmonary fibrosis (IPF).United Therapeutics Corporate Events
Business Operations and Strategy
United Therapeutics to Present at J.P. Morgan Conference
Positive
Jan 13, 2025
United Therapeutics announced it will present an update on its business at the J.P. Morgan Healthcare Conference, highlighting its growth strategy and innovative pipeline. The company is progressing with its UKidney and miroliverELAP programs and anticipates several clinical and regulatory milestones over the next three years, reflecting its commitment to sustaining business growth and creating shareholder value.
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.