United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $23.24B
• Dividend Yield: N/A
• Average Volume (3M): 472.74K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.47
• Revenue Growth: 13.50%
• EPS Growth: 17.16%
• Country: US
• Employees: 1,305
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 7.70
• Shares Outstanding: 43,827,686
• 10 Day Avg. Volume: 645,438
• 30 Day Avg. Volume: 472,743
• PEG Ratio: 1.16
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 6.78
• P/FCF Ratio: 20.74
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 6.83
• Enterprise Value/Gross Profit: 7.76
• Enterprise Value/Ebitda: 12.02
• 1Y Price Target: $546.00
• Price Target Upside: 1.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 29.45
• Revenue Forecast (FY): $3.34B

• Rating: 85 Outperform
• Price Target: $622.00 ▲(15.18% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by exceptional financial strength (high margins, strong cash generation, and debt eliminated) and supportive earnings-call fundamentals with meaningful pipeline catalysts. Offsetting factors are mixed near-term technical momentum, competitive/binary execution risk, and valuation support limited by the lack of a provided dividend yield.

Positive Factors

Balance sheet strength

United Therapeutics eliminated reported total debt by 2025 and expanded equity to $7.10B, materially reducing financial risk. A debt-free balance sheet supports durable investment in R&D, strategic M&A, and shareholder returns while insulating the business from macro funding shocks.

Robust cash generation

The company’s operating cash flow scaled materially over several years, with consistently strong free cash flow levels. Sustained cash generation underpins durable funding for late-stage trials, manufacturing scale-up, repurchases, and launches without overreliance on external capital.

Late-stage pipeline clinical success

A successful phase 3 readout for ralinepag materially strengthens the company’s long-term commercial runway in PAH by adding a once-daily oral prostacyclin. Positive pivotal results reduce binary regulatory risk versus earlier stages and meaningfully expand product-market opportunities if approved.

Negative Factors

Dependence on binary readouts

Multiple near-term and mid-term growth assumptions rely on binary clinical unblindings and regulatory approvals. Failures or delays in any pivotal readout would materially alter revenue trajectories and defer expected launches, creating persistent execution and regulatory risk to the business plan.

Emerging competitive pressure

New entrants like Liquidia/Yutrepia introduce durable competitive dynamics in the PAH market. Persistent competition can pressure pricing, referral patterns, and patient starts, requiring ongoing investment in differentiation, clinical evidence, and sales efforts to protect share and margins.

Revenue deceleration and FCF volatility

After multi-year expansion, top-line growth materially slowed in 2025 and free cash flow showed a notable decline. If this deceleration or cash-flow volatility persists, it could temper margin expansion, reduce discretionary capital for launches/repurchases, and constrain strategic optionality.

United Therapeutics Business Overview & Revenue Model

Company Description

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. Its commercial therapies include Remodulin to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Tyvaso, an inhaled formulation of prostacyclin analogue treprostinil to enhance the exercise ability in PAH patients and pulmonary hypertension associated with interstitial lung disease (PH-ILD); Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Unituxin, a monoclonal antibody for treating high-risk neuroblastoma; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. The company also engages in developing Tyvaso DPI, a dry powder inhalation form of Tyvaso; Remunity Pump, a small, lightweight, durable pump and separate controller; RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Tyvaso PERFECT and TETON studies, which are the studies of Tyvaso in patients with World Health Organization (WHO) Group 3 pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD). It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.

How the Company Makes Money

United Therapeutics generates revenue primarily through the sale of its pharmaceutical products, specifically those used in the treatment of pulmonary arterial hypertension (PAH). The company's key revenue streams include sales of its flagship products like Remodulin, Tyvaso, and Orenitram, which are sold to healthcare providers and pharmacies. Additionally, United Therapeutics engages in strategic partnerships and collaborations with other companies and organizations to enhance its research capabilities and expand its product pipeline, which can lead to additional revenue opportunities. The company also benefits from government reimbursements and pricing agreements that further contribute to its earnings. Overall, the combination of product sales, partnerships, and a focus on innovative therapies forms the basis of United Therapeutics' revenue model.

United Therapeutics Financial Statement Overview

Summary

High-quality fundamentals: strong multi-year revenue and earnings expansion with exceptional margins, a fortress balance sheet with debt eliminated by 2025, and strong operating/free cash flow generation. Main offsets are decelerating 2025 revenue growth and some free-cash-flow volatility.

Income Statement

Revenue has compounded strongly from $1.48B (2020) to $3.18B (2025), with solid year-by-year growth through 2024 and a modest ~1.7% growth in 2025. Profitability is a standout: gross margin remains ~89%+ (where provided), and net margins are consistently very high (~28% to ~42% in 2020–2024), supporting rising net income to $1.33B in 2025. The main weakness is decelerating top-line growth in 2025 versus prior years, which could temper future earnings momentum if it persists.

Balance Sheet

Balance sheet strength is exceptional, highlighted by very low leverage and improving capital structure: total debt declines from $800M (2020–2022) to $700M (2023), $300M (2024), and $0 (2025). Equity has steadily grown to $7.10B (2025), while returns on equity remain healthy (~12% to ~19% in 2020–2024). A key watch item is that returns could moderate if profitability slows while equity continues to build, but overall financial risk appears minimal.

Cash Flow

Cash generation is strong and scaling: operating cash flow rises from $756M (2020) to $1.56B (2025), and free cash flow remains robust (about $0.66B–$1.08B from 2022–2025). Cash conversion looks solid in 2022–2024, with free cash flow running at roughly 76%–83% of net income (where provided). The main weakness is volatility in free cash flow growth, including a decline in 2025 (about -7.2%) after a strong 2024, suggesting periodic working-capital or investment-driven swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.18B	2.88B	2.33B	1.94B	1.69B
Gross Profit	2.80B	2.57B	2.07B	1.79B	1.56B
EBITDA	1.82B	1.65B	1.39B	1.04B	736.80M
Net Income	1.33B	1.20B	984.80M	727.30M	475.80M
Balance Sheet
Total Assets	7.88B	7.36B	7.17B	6.04B	5.17B
Cash, Cash Equivalents and Short-Term Investments	1.56B	3.27B	2.99B	2.84B	1.93B
Total Debt	0.00	300.00M	700.00M	800.00M	800.00M
Total Liabilities	783.80M	920.00M	1.18B	1.25B	1.21B
Stockholders Equity	7.10B	6.44B	5.98B	4.80B	3.96B
Cash Flow
Free Cash Flow	1.04B	1.08B	747.60M	663.70M	477.40M
Operating Cash Flow	1.56B	1.33B	978.00M	802.50M	598.20M
Investing Cash Flow	-551.30M	417.20M	-719.60M	-811.50M	-486.90M
Financing Cash Flow	-1.15B	-1.25B	-11.90M	75.40M	44.80M

United Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 540.02
• 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 UTHR, the sentiment is Positive. The current price of 540.02 is above the 20-day moving average (MA) of 506.97, above the 50-day MA of 489.39, and above the 200-day MA of 412.82, indicating a bullish trend. The MACD of 14.70 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 85.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTHR.

United Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTHR	85 Outperform	$23.24B	16.17	19.30%	―	13.50%	17.16%
EXEL	76 Outperform	$10.86B	12.10	36.88%	―	9.93%	54.33%
INCY	75 Outperform	$18.36B	14.98	29.15%	―	18.09%	3563.21%
BMRN	68 Neutral	$10.66B	32.67	5.82%	―	12.31%	60.21%
GMAB	66 Neutral	$15.89B	19.82	14.32%	―	24.98%	127.06%
ASND	57 Neutral	$13.96B	-50.22	127.54%	―	103.32%	47.55%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

United Therapeutics Corporate Events

United Therapeutics Launches Major Accelerated Share Repurchase Program

United Therapeutics’ board on March 8, 2026 authorized a new stock repurchase program of up to $2 billion through March 9, 2027, signaling confidence in the company’s growth prospects and cash-flow trajectory. Management framed the move as a response to what it sees as a disconnect between the firm’s fundamentals and its market valuation, positioning the buyback as a value-enhancing capital allocation decision for shareholders.

On March 9, 2026, the company executed two accelerated share repurchase agreements with Citibank totaling $1.5 billion, split evenly between an uncollared and a collared structure, with initial share deliveries due around March 11, 2026 and final settlement tied to volume-weighted average prices later in 2026. The remaining $500 million authorization can be deployed at the company’s discretion over the next year, giving United Therapeutics flexibility to continue shrinking its float and potentially boosting earnings per share while maintaining what it describes as a robust balance sheet.

The most recent analyst rating on (UTHR) stock is a Buy with a $705.00 price target. To see the full list of analyst forecasts on United Therapeutics stock, see the UTHR Stock Forecast page.

United Therapeutics’ Ralinepag Trial Success Boosts PAH Outlook

On March 2, 2026, United Therapeutics reported that its pivotal phase 3 ADVANCE OUTCOMES trial of ralinepag in pulmonary arterial hypertension met its primary endpoint, cutting the risk of clinical worsening events by 55% versus placebo and showing statistically significant gains in six-minute walk distance and NT-proBNP. The once-daily oral prostacyclin candidate delivered consistent benefits across heavily pre-treated patient subgroups with a safety profile in line with known prostacyclin effects, reinforcing its potential to reshape the PAH treatment landscape as the company prepares to present full data and pursue U.S. regulatory approval by the second half of 2026.

The most recent analyst rating on (UTHR) stock is a Hold with a $471.00 price target. To see the full list of analyst forecasts on United Therapeutics stock, see the UTHR Stock Forecast page.

United Therapeutics appoints new director, updates bylaws

On January 21, 2026, United Therapeutics’ board expanded its size to 13 members and appointed Kevin J. Tracey, M.D., a prominent researcher and biotech entrepreneur in inflammation and bioelectronic medicine, as a new director, granting him standard non-employee director equity awards and indemnification in line with existing company programs. On the same date, the board approved and put into effect an eleventh restatement of the company’s bylaws, introducing a cure process for certain shareholder director-nomination deficiencies, eliminating the board’s ability to require supermajority votes on routine matters, and lowering the shareholder voting threshold to amend the bylaws from 80% to a simple majority, changes that collectively enhance shareholder influence over governance and continue an active board-refreshment strategy.

The most recent analyst rating on (UTHR) stock is a Hold with a $546.00 price target. To see the full list of analyst forecasts on United Therapeutics stock, see the UTHR Stock Forecast page.