United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $20.78B
• Dividend Yield: N/A
• Average Volume (3M): 297.57K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.50
• Revenue Growth: 13.50%
• EPS Growth: 17.16%
• Country: US
• Employees: 1,305
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 7.16
• Shares Outstanding: 43,056,600
• 10 Day Avg. Volume: 299,082
• 30 Day Avg. Volume: 297,573
• PEG Ratio: 0.52
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 5.54
• P/FCF Ratio: 14.76
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 6.61
• Enterprise Value/Gross Profit: 7.46
• Enterprise Value/Ebitda: 12.12
• 1Y Price Target: $555.20
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $531.00 ▲(10.03% Upside)

Score is driven primarily by elite fundamentals (high margins, strong cash generation, and a debt-free balance sheet) and a constructive earnings outlook with clear longer-term revenue targets. The main offset is weak near-term technical momentum (below key moving averages with bearish MACD/RSI), while valuation is reasonable but not strongly supported by income characteristics (no dividend yield provided).

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for United Therapeutics' products, supporting long-term financial stability and expansion.

Pipeline Advancements

Successful clinical trials enhance the company's product portfolio, potentially leading to new revenue streams and strengthening its competitive position.

Strategic Collaborations

Strategic partnerships can expand market reach and leverage combined expertise, driving growth and innovation in product offerings.

Negative Factors

Regulatory Uncertainties

Regulatory uncertainties can delay product launches and affect market entry timing, impacting revenue projections and strategic planning.

Market Competition

Increased competition could pressure pricing and market share, challenging United Therapeutics' ability to maintain its growth trajectory.

Revenue Miss

Missing revenue expectations may indicate challenges in meeting market demand or operational inefficiencies, potentially affecting investor confidence.

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

Exceptional profitability and operating efficiency (TTM gross margin ~88.6%, operating margin ~53.7%, net margin ~40.7%), paired with a standout balance sheet (reported $0 total debt; expanding equity) and strong cash generation (TTM OCF ~$1.56B; FCF ~$1.12B). Risks are limited to growth variability and a recent dip in free-cash-flow conversion versus 2024.

Income Statement

UTHR shows exceptionally strong profitability for Biotechnology, with TTM (Trailing-Twelve-Months) gross margin ~88.6% and net margin ~40.7%. Earnings power is high (TTM operating margin ~53.7%), and revenue has scaled meaningfully versus prior annual periods (2021–2024 revenue rising steadily). The main weakness is growth volatility: while TTM revenue growth is very strong (as provided), prior annual growth rates were more moderate, suggesting the recent acceleration may not be as consistent as the margin profile.

Balance Sheet

The balance sheet is a standout strength: TTM (Trailing-Twelve-Months) total debt is reported at $0 with a 0.0 debt-to-equity ratio, following a multi-year trend of declining leverage (from ~0.24 in 2020 to ~0.05 in 2024). Equity has expanded materially over time, supporting financial flexibility. Return on equity remains strong and stable (about 18–19% in 2024 and TTM), though with no debt, incremental ROE expansion may rely more on continued profit growth than on capital structure optimization.

Cash Flow

Cash generation is robust and improving: TTM (Trailing-Twelve-Months) operating cash flow is ~$1.56B and free cash flow is ~$1.12B, with very strong TTM free cash flow growth (as provided). Cash conversion is solid—free cash flow is ~72% of net income in TTM, and operating cash flow is ~2.85x net income, indicating earnings are well-supported by cash. A watch item is that free cash flow conversion dipped versus 2024 (~81% of net income), implying higher reinvestment or working-capital drag in the most recent period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	2.88B	2.33B	1.94B	1.69B	1.48B
Gross Profit	2.77B	2.57B	2.07B	1.79B	1.56B	1.38B
EBITDA	1.71B	1.65B	1.39B	1.04B	736.80M	646.30M
Net Income	1.27B	1.20B	984.80M	727.30M	475.80M	514.80M
Balance Sheet
Total Assets	7.35B	7.36B	7.17B	6.04B	5.17B	4.62B
Cash, Cash Equivalents and Short-Term Investments	2.77B	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	760.90M	920.00M	1.18B	1.25B	1.21B	1.22B
Stockholders Equity	6.59B	6.44B	5.98B	4.80B	3.96B	3.40B
Cash Flow
Free Cash Flow	1.12B	1.08B	747.60M	663.70M	477.40M	696.40M
Operating Cash Flow	1.56B	1.33B	978.00M	802.50M	598.20M	755.70M
Investing Cash Flow	-446.90M	417.20M	-719.60M	-811.50M	-486.90M	-738.50M
Financing Cash Flow	-1.32B	-1.25B	-11.90M	75.40M	44.80M	-16.90M

United Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 482.59
• 50DMA: Negative
• 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 482.59 is above the 20-day moving average (MA) of 475.95, below the 50-day MA of 486.39, and above the 200-day MA of 385.42, indicating a neutral trend. The MACD of -3.21 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 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
INCY	81 Outperform	$20.14B	17.21	30.39%	―	18.09%	3563.21%
EXEL	78 Outperform	$11.43B	17.96	30.56%	―	9.93%	54.33%
UTHR	76 Outperform	$20.78B	18.29	20.04%	―	13.50%	17.16%
GMAB	76 Outperform	$19.53B	13.44	28.20%	―	24.98%	127.06%
BMRN	71 Outperform	$11.07B	21.59	9.07%	―	12.31%	60.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ASND	46 Neutral	$13.43B	-51.74	―	―	103.32%	47.55%

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.