Universal Health Services Inc (UHS, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $174.83, Universal Health Services Inc has witnessed a daily gain of 0.13%, marked against a three-month change of 25.08%. A thorough analysis, underlined by the GF Score, suggests that Universal Health Services Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
With a high Growth rank and Profitability rank, Universal Health Services Inc demonstrates its capacity for sustained earnings and expansion. Although the Financial strength rank and GF Value rank are moderate, the company's overall GF Score of 93 out of 100 signals the highest outperformance potential.
Understanding Universal Health Services Inc Business
Universal Health Services Inc, with a market cap of $11.75 billion and sales of $14.28 billion, operates a diversified healthcare services network. The company's operating margin stands at 8.23%, reflecting efficient management of its operations. Universal Health Services Inc owns and operates acute care hospitals, behavior health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The firm operates in two key segments: Acute Care Hospital Services and Behavioral Health Services, providing a comprehensive range of healthcare services.
Profitability Rank Breakdown
The Profitability Rank of Universal Health Services Inc is a testament to its superior ability to generate profits compared to its peers. The company's solid financial situation is further confirmed by the Piotroski F-Score, which is based on Joseph Piotroski's nine-point scale assessing profitability, funding, and operating efficiency. Additionally, the company's Predictability Rank of 5.0 stars out of five highlights its consistent operational performance, offering investors a sense of reliability.
Growth Rank Breakdown
Universal Health Services Inc's high Growth rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 14.7% surpasses 65.59% of companies in the Healthcare Providers & Services industry. The consistent increase in EBITDA over the past few years, with a three-year growth rate of 3.8 and a five-year rate of 5.9, showcases Universal Health Services Inc's ability to drive growth and enhance profitability.
Next Steps
Considering Universal Health Services Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on this opportunity can explore more companies with strong GF Scores using the GF Score Screen. With its proven track record and strategic positioning, Universal Health Services Inc stands as a compelling choice for value investors looking to enhance their portfolios with a stock poised for market leadership.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
