United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $20.48B
• Dividend Yield: N/A
• Average Volume (3M): 417.78K
• Price to Earnings (P/E): 18.0
• 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): 7.16
• Shares Outstanding: 43,056,600
• 10 Day Avg. Volume: 357,302
• 30 Day Avg. Volume: 417,779
• 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: 0.83
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 6.16
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $534.50
• Price Target Upside: 12.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 30.5
• Revenue Forecast (FY): $3.38B

• Rating: 83 Outperform
• Price Target: $563.00 ▲(18.34% Upside)

The score is driven primarily by exceptionally strong financial performance (elite margins, large free cash flow, and a debt-free balance sheet). Earnings call commentary adds support via constructive long-term guidance and pipeline progress, while the technical picture is mixed with near-term softness versus the 20-day average. Valuation appears reasonable at a ~18.6 P/E, with no dividend data available to enhance the valuation component.

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

United Therapeutics exhibits a strong financial position with impressive growth and profitability metrics. The income statement reflects robust revenue and profit margins, while the balance sheet is characterized by low leverage and high equity ratios, indicating financial stability. Cash flow generation is strong, supporting operational and strategic initiatives. The overall financial health is solid, with potential for sustained growth.

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	3.13B	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: Neutral
• Last Price: 475.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTHR, the sentiment is Neutral. The current price of 475.73 is below the 20-day moving average (MA) of 498.46, below the 50-day MA of 482.86, and above the 200-day MA of 372.84, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 13.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UTHR.

United Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTHR	83 Outperform	$20.48B	18.03	20.04%	―	13.50%	17.16%
INCY	81 Outperform	$20.80B	17.77	30.39%	―	18.09%	3563.21%
EXEL	78 Outperform	$12.13B	19.04	30.56%	―	9.93%	54.33%
BMRN	76 Outperform	$10.77B	21.01	9.07%	―	12.31%	60.21%
GMAB	76 Outperform	$21.59B	14.89	28.20%	―	24.98%	127.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ASND	46 Neutral	$13.28B	-51.17	―	―	103.32%	47.55%