United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $20.38B
• Dividend Yield: N/A
• Average Volume (3M): 308.51K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.52
• 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: 43,056,600
• 10 Day Avg. Volume: 320,094
• 30 Day Avg. Volume: 308,512
• 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: 1.04
• Enterprise Value/Revenue: 6.67
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 11.67
• 1Y Price Target: $578.78
• Price Target Upside: 14.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 30.55
• Revenue Forecast (FY): $3.39B

• Rating: 85 Outperform
• Price Target: $629.00 ▲(24.83% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by exceptional financial performance (high profitability, strong cash generation, and debt-free balance sheet). Earnings-call commentary supports continued growth with meaningful pipeline catalysts, partly offset by binary execution/regulatory risks and emerging competition. Technically, the stock is trending strongly but appears overbought, and valuation is reasonable with no dividend data provided.

Positive Factors

Balance sheet strength

A debt-free capital structure and rising equity materially reduce financial risk and preserve strategic optionality. This durability supports sustained R&D, commercial investment and potential M&A without near-term refinancing pressure, strengthening long-term operational flexibility.

Cash generation and FCF

Consistently strong operating cash flow and sizeable free cash flow provide internal funding for clinical programs and commercial launches. Reliable cash conversion underpins reinvestment into pipeline and transplant programs, reducing dependence on external capital over the medium term.

Proven commercial base and pipeline cadence

A >$3B revenue base, durable Tyvaso growth (notably DPI expansion) and management's roadmap of filings/unblindings create multiple, staggered catalysts. The combination of a strong core franchise plus upcoming launches supports sustainable revenue expansion and diversification over years.

Negative Factors

Binary pipeline and regulatory risk

Key near-term value depends on trial unblindings and regulatory filings; adverse or delayed outcomes would materially impair projected launches and revenue ramps. This binary dependency amplifies execution risk and could alter capital allocation and growth trajectories over the medium term.

Decelerating top-line growth / FCF variability

A marked slowdown in revenue growth in 2025 and variability in free cash flow introduce uncertainty into margin expansion and return metrics. If deceleration persists it could constrain reinvestment capacity and delay achieving the company's $4B run-rate target.

Emerging competitive pressure

New entrants with alternative formulations create durable competitive pressure on prescriptions and referrals. Sustained competition may require increased commercialization spend, slower uptake for new formulations, and potential margin compression across the PAH product franchise.

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 growth with exceptional margins, a fortress balance sheet with debt eliminated by 2025, and robust operating cash flow. Main offsets are slowing top-line growth in 2025 and some free-cash-flow variability.

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: 503.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 503.9 is above the 20-day moving average (MA) of 482.23, above the 50-day MA of 486.29, and above the 200-day MA of 400.27, indicating a bullish trend. The MACD of 5.69 indicates Negative momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 is Neutral, 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	$20.38B	20.28	19.71%	―	13.50%	17.16%
INCY	83 Outperform	$20.11B	15.61	29.87%	―	18.09%	3563.21%
EXEL	76 Outperform	$11.72B	16.08	35.53%	―	9.93%	54.33%
BMRN	74 Outperform	$12.03B	34.48	5.94%	―	12.31%	60.21%
GMAB	66 Neutral	$18.05B	18.78	17.65%	―	24.98%	127.06%
ASND	57 Neutral	$14.42B	-54.32	―	―	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 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.