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 $178.72, Universal Health Services Inc has witnessed a daily gain of 0.8%, marked against a three-month change of 18.87%. 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
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, but a moderate financial strength and GF Value rank, GuruFocus assigned Universal Health Services Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding Universal Health Services Inc's Business
Universal Health Services Inc, with a market cap of $12.01 billion and sales of $14.28 billion, operates within the healthcare sector with a focus on acute care hospitals, behavioral health centers, and various medical facilities. The company's operating margin stands at 8.23%, reflecting its efficiency in managing expenses relative to its revenue. Universal Health Services Inc's business is divided into two key segments: Acute Care Hospital Services and Behavioral Health Services. The Acute Care Hospital Services segment includes the company's acute care hospitals, surgical hospitals, and surgery and oncology centers, which are fundamental to its revenue generation.
Profitability Rank Breakdown
The Profitability Rank of Universal Health Services Inc is a testament to its superior ability to generate profits compared to its industry peers. This is further supported by the Piotroski F-Score, which evaluates Universal Health Services Inc's financial health through a nine-point scale, indicating strong profitability, funding, and operational efficiency. Additionally, the company's Predictability Rank of 5.0 stars out of five highlights its consistent operational performance, offering investors a reliable investment option.
Growth Rank Breakdown
Universal Health Services Inc's high Growth Rank reflects its commitment to expanding its operations and increasing its market presence. The company's 3-Year Revenue Growth Rate of 14.7% surpasses 64.99% of the companies in the Healthcare Providers & Services industry. The growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years, with a three-year growth rate of 3.8 and a five-year rate of 5.9, underscores Universal Health Services Inc's ability to drive growth and enhance shareholder value.
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 such robust financial health and promising growth prospects may find Universal Health Services Inc an attractive addition to their portfolios. For those looking to discover more companies with strong GF Scores, GuruFocus Premium members can utilize the following screener link: GF Score Screen.
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.
