United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $12.69B
• Dividend Yield: N/A
• Average Volume (3M): 467.54K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.53
• Revenue Growth: 19.85%
• EPS Growth: 21.16%
• Country: US
• Employees: 1,305
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): 6.63
• Shares Outstanding: 45,106,625
• 10 Day Avg. Volume: 497,564
• 30 Day Avg. Volume: 467,543
• PEG Ratio: 0.33
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.77
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 1.60
• 1Y Price Target: $375.20
• Price Target Upside: 35.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $318.00 ▲(15.02%Upside)

United Therapeutics' strong financial performance and positive earnings call outlook are significant strengths, contributing to a high overall score. The stock's attractive valuation further supports its potential, despite mixed technical indicators.

Positive Factors

Market Leadership

United Therapeutics' entrenched market leadership position with strong physician relationships and hurdles to patient switching could limit the impact of Yutrepia.

Product Expansion

UTHR is actively expanding Tyvaso to new indications including IPF and PPF, and developing new prostacyclin pipeline including QD oral ralinepag in PAH.

Revenue Growth

United Therapeutics has multiple consecutive quarters of double-digit revenue growth and strong Tyvaso franchise momentum.

Negative Factors

Competition

The FDA approval of LQDA's Yutrepia, a competitor to UTHR's Tyvaso, poses a potential challenge for UTHR as both are approved for the same indications.

Pricing Pressure

Yutrepia's launch strategy includes pricing at parity with Tyvaso and highlighting differentiators such as deep-lung delivery and ease of use, which may influence market dynamics.

Sales Decline

The anticipation of LQDA's Yutrepia in the market is expected to cause a decline in PAH sales for Tyvaso due to increased competition.

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 medical needs of patients with chronic and life-threatening conditions. The company primarily operates in the pharmaceutical sector, specializing in the development of therapies for pulmonary arterial hypertension (PAH) and other conditions. Its core products include Remodulin, Tyvaso, Orenitram, and Unituxin, which are used to treat various forms of PAH and certain types of cancer.

How the Company Makes Money

United Therapeutics generates revenue through the sale of its pharmaceutical products, primarily targeting treatments for pulmonary arterial hypertension (PAH) and certain cancers. The company earns money by commercializing its proprietary drugs, such as Remodulin, Tyvaso, and Orenitram, which are sold to healthcare providers and patients worldwide. Additionally, United Therapeutics benefits from government contracts, collaborations, and partnerships that support research and development initiatives. The company also invests in expanding its product line through continuous innovation and clinical trials, which can lead to new approvals and increased market share, further driving revenue growth.

United Therapeutics Financial Statement Overview

Summary

United Therapeutics showcases strong financial health with robust revenue growth, high profit margins, and financial stability marked by low leverage and solid cash flow support.

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
2.99B	2.88B	2.33B	1.94B	1.69B	1.48B
	Gross Profit
2.66B	2.57B	2.07B	1.79B	1.56B	1.38B
	EBIT
1.40B	1.38B	1.18B	979.70M	555.90M	593.60M
	EBITDA
1.56B	1.65B	1.39B	1.04B	736.80M	646.30M
	Net Income Common Stockholders
1.21B	1.20B	984.80M	727.30M	475.80M	514.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.73B	3.27B	2.99B	4.15B	3.58B	2.98B
	Total Assets
4.64B	7.36B	7.17B	6.04B	5.17B	4.62B
	Total Debt
800.00M	300.00M	700.00M	800.00M	800.00M	800.00M
	Net Debt
-32.30M	-1.40B	-507.70M	-161.20M	-94.80M	61.30M
	Total Liabilities
1.20B	920.00M	1.18B	1.25B	1.21B	1.22B
	Stockholders Equity
3.45B	6.44B	5.98B	4.80B	3.96B	3.40B
Cash Flow		Free Cash Flow
1.13B	1.08B	747.60M	663.70M	477.40M	696.40M
	Operating Cash Flow
1.41B	1.33B	978.00M	802.50M	598.20M	755.70M
	Investing Cash Flow
-482.80M	417.20M	-719.60M	-811.50M	-486.90M	-738.50M
	Financing Cash Flow
-280.60M	-1.25B	-11.90M	75.40M	44.80M	-16.90M

United Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 276.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTHR, the sentiment is Negative. The current price of 276.47 is below the 20-day moving average (MA) of 311.25, below the 50-day MA of 301.68, and below the 200-day MA of 341.51, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 31.23 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTHR.

United Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXEL	84 Outperform	$11.60B	18.80	30.22%	―	24.49%	244.87%
GMAB	82 Outperform	$14.19B	12.70	22.69%	―	25.11%	46.46%
UTHR	76 Outperform	$12.69B	11.23	19.94%	―	19.85%	21.16%
INCY	74 Outperform	$13.56B	213.03	0.47%	―	17.13%	-88.78%
BMRN	71 Outperform	$11.02B	21.21	9.64%	―	17.99%	152.10%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
SMMT	53 Neutral	$16.40B	―	-123.93%	―	―	-99.70%

United Therapeutics Corporate Events

United Therapeutics Secures $2.5 Billion Credit Facility

On April 25, 2025, United Therapeutics Corporation entered into a Credit Agreement with Wells Fargo and other lenders, establishing an unsecured revolving credit facility of up to $2.5 billion, with the possibility of increasing by an additional $750 million. The agreement allows for refinancing existing debt and supporting general corporate purposes. Concurrently, the company borrowed $200 million to repay its previous 2022 Credit Agreement, which was terminated without penalties.