United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $19.57B
• Dividend Yield: N/A
• Average Volume (3M): 911.32K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.50
• Revenue Growth: 17.62%
• EPS Growth: 19.89%
• Country: US
• Employees: 1,305
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 6.41
• Shares Outstanding: 45,226,260
• 10 Day Avg. Volume: 928,294
• 30 Day Avg. Volume: 911,315
• 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: 0.55
• Enterprise Value/Revenue: 3.52
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $495.27
• Price Target Upside: 14.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $459.00 ▲(6.09% Upside)

United Therapeutics' strong financial performance and strategic initiatives, including record revenue growth and a significant share buyback, are major strengths. The technical indicators suggest bullish momentum, though potential overbought conditions warrant caution. The company's reasonable valuation and promising pipeline developments further support a positive outlook, despite competitive and regulatory challenges.

Positive Factors

Revenue Growth

Consistent double-digit revenue growth over 12 quarters highlights strong market demand and effective product positioning, ensuring sustained financial health.

Pipeline Development

Successful TETON-2 results enhance the company's product pipeline, potentially expanding market opportunities and boosting long-term revenue prospects.

Financial Strength

Strong cash flow generation supports strategic initiatives and provides financial flexibility for future growth and investment in R&D.

Negative Factors

Competitive Challenges

Increased competition could pressure market share and pricing, potentially impacting long-term revenue and profitability.

Regulatory Concerns

Regulatory scrutiny and market perception issues could delay product approvals and affect investor confidence, impacting future growth.

Market Concerns for TPIP

Challenges in bringing TPIP to market could delay revenue generation and limit the company's ability to capitalize on new therapeutic opportunities.

United Therapeutics Business Overview & Revenue Model

Company Description

United Therapeutics Corporation is a biotechnology company focused on the development and commercialization of unique products to address the unmet needs of patients with chronic and life-threatening conditions. The company operates primarily in the pulmonary and vascular disease sectors, offering therapies for conditions such as pulmonary arterial hypertension (PAH) and organ transplantation. Its core products include Remodulin, Tyvaso, and Orenitram, which are designed to improve the quality of life for patients suffering from these serious health issues.

How the Company Makes Money

United Therapeutics generates revenue primarily through the sale of its pharmaceutical products, which treat chronic and life-threatening diseases. The company’s key revenue streams come from the commercial sales of its approved therapies, including Remodulin, Tyvaso, and Orenitram, which are prescribed to patients with pulmonary arterial hypertension. In addition to direct product sales, United Therapeutics may also earn revenue from partnerships with other biotechnology and pharmaceutical companies, including co-development agreements and licensing deals. The company invests heavily in research and development to innovate new therapies and expand its product offerings, which can enhance its market position and revenue potential. Moreover, the increasing prevalence of PAH and other related conditions contributes to a growing demand for its treatments, further supporting its earnings.

United Therapeutics Financial Statement Overview

Summary

United Therapeutics exhibits strong financial performance with robust revenue growth, high profit margins, and solid operational efficiency. The balance sheet shows low leverage and high equity ratios, indicating financial stability. Cash flow generation is strong, supporting operational and strategic initiatives.

Income Statement

United Therapeutics has demonstrated strong financial performance with a consistent increase in total revenue over multiple years. The TTM revenue growth rate is approximately 4.06%, and the gross profit margin stands at a robust 89.00%. Net profit margin is currently 40.43%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also strong, at 46.87% and 52.21% respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet is marked by a strong equity position with an equity ratio of 87.89%, indicating a low reliance on debt. The debt-to-equity ratio is low at 0.03, showcasing financial stability. Return on equity is a healthy 17.79%, reflecting effective use of equity capital in generating profits. However, the relatively low total liabilities suggest limited financial leverage.

Cash Flow

The company has demonstrated positive cash flow metrics with a free cash flow growth rate of 4.45%. The operating cash flow to net income ratio is 1.17, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.93, showing efficient translation of earnings into free cash flow. The cash flow is stable and supports the company's operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	2.88B	2.33B	1.94B	1.69B	1.48B
Gross Profit	2.74B	2.57B	2.07B	1.79B	1.56B	1.38B
EBITDA	1.66B	1.65B	1.39B	1.04B	736.80M	646.30M
Net Income	1.24B	1.20B	984.80M	727.30M	475.80M	514.80M
Balance Sheet
Total Assets	7.91B	7.36B	7.17B	6.04B	5.17B	4.62B
Cash, Cash Equivalents and Short-Term Investments	3.05B	3.27B	2.99B	2.84B	1.93B	1.83B
Total Debt	0.00	300.00M	700.00M	800.00M	800.00M	800.00M
Total Liabilities	734.40M	920.00M	1.18B	1.25B	1.21B	1.22B
Stockholders Equity	7.17B	6.44B	5.98B	4.80B	3.96B	3.40B
Cash Flow
Free Cash Flow	1.07B	1.08B	747.60M	663.70M	477.40M	696.40M
Operating Cash Flow	1.37B	1.33B	978.00M	802.50M	598.20M	755.70M
Investing Cash Flow	-702.70M	417.20M	-719.60M	-811.50M	-486.90M	-738.50M
Financing Cash Flow	-431.20M	-1.25B	-11.90M	75.40M	44.80M	-16.90M

United Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 432.66
• 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 432.66 is above the 20-day moving average (MA) of 403.23, above the 50-day MA of 342.64, and above the 200-day MA of 327.88, indicating a bullish trend. The MACD of 26.36 indicates Negative momentum. The RSI at 69.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.66 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
GMAB	82 Outperform	$17.76B	14.40	22.13%	―	23.25%	64.46%
INCY	80 Outperform	$16.15B	18.80	20.88%	―	18.87%	1088.27%
UTHR	77 Outperform	$19.57B	16.89	19.30%	―	17.62%	19.89%
BMRN	76 Outperform	$10.34B	15.95	10.90%	―	17.38%	153.58%
EXEL	76 Outperform	$10.51B	18.72	29.62%	―	10.73%	81.66%
ASND	61 Neutral	$11.63B	-38.64	357.68%	―	55.77%	46.81%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

United Therapeutics Corporate Events

United Therapeutics Announces Positive TETON-2 Study Results

On September 2, 2025, United Therapeutics announced positive results from the TETON-2 clinical study of Tyvaso® for idiopathic pulmonary fibrosis (IPF). The study met its primary endpoint, showing significant improvement in forced vital capacity compared to placebo, and demonstrated benefits across various subgroups. These results could potentially reshape IPF treatment and offer new hope for patients, as the company plans to use this data to support a supplemental New Drug Application to the FDA.

United Therapeutics Launches $1 Billion Share Buyback

On August 1, 2025, United Therapeutics Corporation announced the initiation of a $1 billion accelerated share repurchase program, reflecting confidence in its stock value and future growth prospects. The company entered into agreements with Citibank to repurchase shares, with settlements expected in late 2025 and early 2026, highlighting a strategic move to balance investment in growth with returning capital to shareholders.

United Therapeutics Shareholders Approve Key Resolutions

On June 26, 2025, United Therapeutics held its Annual Meeting of Shareholders where four key matters were voted on. The shareholders elected directors for a one-year term, approved an advisory resolution on executive compensation, amended the 2015 Stock Incentive Plan, and ratified Ernst & Young LLP as the independent public accounting firm for 2025.