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U.s. Physical Therapy (USPH)
NYSE:USPH
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US Physical Therapy
(NYSE:USPH)
64Neutral
Positive Factors
Financial Performance
U.S. Physical Therapy delivers strong results driven by record patient visits and a pricing increase.
Investment Rating
The company maintains an OUTPERFORM investment rating with a significant upside potential of 38%.
Revenue Growth
The industrial injury prevention business showed substantial growth, contributing positively to the financial results.
Negative Factors
Cash Flow
Cash flow from operations in the quarter was negative, showing a concern in cash management.
Labor Costs
Management continues to contend with labor inflation, as salaries and related costs per visit increased significantly.
Medicare Rate Impact
Management stated that the Medicare rate reduction for 2025 would likely negatively impact adjusted EBITDA by approximately $5.7 million.
US Physical Therapy (USPH) vs. S&P 500 (SPY)
Market Cap
$1.21B
Dividend Yield2.22%
Average Volume (3M)126.56K
Price to Earnings (P/E)36.7
Beta (1Y)0.88
Revenue Growth14.30%
EPS Growth76.89%
CountryUS
Employees4,034
SectorHealthcare
Sector Strength41
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.48
Shares Outstanding15,191,689
10 Day Avg. Volume130,186
30 Day Avg. Volume126,561
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)2.29
Price to Sales (P/S)0.00
P/FCF Ratio16.98
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit11.24
Enterprise Value/Ebitda4.62
Forecast
1Y Price Target
$107.00Price Target Upside34.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
US Physical Therapy Business Overview & Revenue Model
Company DescriptionU.S. Physical Therapy, Inc. (USPH) is a leading national operator of outpatient physical therapy clinics in the United States. The company operates across various sectors within the healthcare industry, focusing on providing physical therapy services to patients with a wide range of musculoskeletal conditions. USPH's core services include treatment for orthopedic disorders, sports-related injuries, and preventative care, aiming to improve patients' mobility and overall quality of life.
How the Company Makes MoneyUSPH generates revenue primarily through the operation of its outpatient physical therapy clinics, where they charge patients or their insurers for therapy sessions and related services. The company's key revenue streams include payments from private insurance companies, Medicare, Medicaid, and direct payments from patients. Additionally, USPH may enter into partnerships or joint ventures with healthcare providers or organizations to expand their service offerings and reach, potentially contributing to their earnings. A significant factor in their revenue generation includes maintaining strong relationships with referral sources such as physicians, hospitals, and other healthcare facilities to ensure a steady flow of patients into their clinics.
US Physical Therapy Financial Statement Overview
Summary
US Physical Therapy demonstrates solid revenue growth and effective cost management, but its net income fluctuations and rising debt levels warrant attention. Strong cash flow performance provides a cushion, yet inconsistent free cash flow growth could pose challenges. Overall, the company shows resilience with potential areas for improvement in profitability and debt management.Income Statement
The company shows consistent revenue growth over the years, although there was a slight dip in 2024. Gross profit margin has been relatively stable, indicating effective cost management. However, net profit margin dropped significantly in 2024 due to a lower net income, which could be a concern if it persists.75
Positive
Balance Sheet
The company's debt-to-equity ratio is manageable, but there is an increasing trend in total debt over recent years. Return on equity has been volatile, showing potential instability in generating profits from equity. The equity ratio indicates a reasonable level of financial stability.68
Positive
Cash Flow
The operating cash flow has remained strong, but free cash flow growth appears inconsistent. The company maintains a healthy free cash flow to net income ratio, suggesting good cash generation relative to its net income.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 560.55M | 604.80M | 553.14M | 495.02M | 422.97M | Gross Profit |
| 123.92M | 111.99M | 112.02M | 117.18M | 94.45M | EBIT |
| 63.21M | 69.56M | 56.80M | 76.77M | 52.41M | EBITDA |
| 86.91M | 74.37M | 76.09M | 85.73M | 77.68M | Net Income Common Stockholders |
| 26.46M | 14.67M | 43.41M | 57.92M | 52.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 41.36M | 152.82M | 31.59M | 28.57M | 32.92M | Total Assets |
| 1.17B | 997.24M | 858.15M | 749.43M | 594.36M | Total Debt |
| 295.23M | 258.59M | 295.34M | 223.08M | 110.99M | Net Debt |
| 253.87M | 105.76M | 263.74M | 194.51M | 78.07M | Total Liabilities |
| 408.42M | 345.00M | 373.59M | 296.98M | 184.39M | Stockholders Equity |
| 488.93M | 476.19M | 315.79M | 295.61M | 276.16M |
| Cash Flow | Free Cash Flow | |||
| 65.75M | 72.68M | 50.29M | 68.20M | 92.36M | Operating Cash Flow |
| 74.94M | 81.98M | 58.54M | 76.41M | 100.00M | Investing Cash Flow |
| -149.45M | -45.02M | -81.27M | -124.14M | -51.20M | Financing Cash Flow |
| -36.95M | 84.27M | 25.76M | 43.38M | -39.42M |
US Physical Therapy Technical Analysis
Neutral
79.84
Price Trends
72.57
Positive
79.85
Negative
83.27
Negative
Market Momentum
1.71
Negative
73.48
Negative
91.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USPH, the sentiment is Neutral. The current price of 79.84 is above the 20-day moving average (MA) of 72.52, above the 50-day MA of 72.57, and below the 200-day MA of 83.27, indicating a neutral trend. The MACD of 1.71 indicates Negative momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 91.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USPH.
US Physical Therapy Risk Analysis
US Physical Therapy disclosed 30 risk factors in its most recent earnings report. US Physical Therapy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
US Physical Therapy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.68B | 15.71 | 11.19% | 2.25% | 19.16% | 31.92% | |
69 Neutral | $1.04B | 39.43 | 11.28% | ― | 30.04% | 43.47% | |
64 Neutral | $1.21B | 36.74 | 6.72% | 2.22% | 14.30% | 76.89% | |
54 Neutral | $868.68M | 18.62 | -21.08% | ― | -18.13% | -215.78% | |
52 Neutral | $5.15B | 3.02 | -44.64% | 2.83% | 16.44% | -0.47% | |
51 Neutral | $1.17B | 344.25 | 42.49% | ― | 9.05% | ― |
* Healthcare Sector Average
Performance Comparison
USPH
US Physical Therapy
79.84
-23.44
-22.70%
AMN
AMN Healthcare Services
22.69
-36.92
-61.94%
NHC
National Healthcare
108.61
11.72
12.10%
PNTG
Pennant Group
30.22
7.10
30.71%
AVAH
Aveanna Healthcare Holdings
5.99
3.08
105.84%
US Physical Therapy Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 12.51%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of significant achievements and ongoing challenges. The company demonstrated strong growth in key areas such as injury prevention and workers' compensation revenue. There was successful integration of the Metro acquisition and improvements in rates despite adverse conditions. However, challenges included weather-related impacts on mature clinic volumes and decreased margins due to acquisitions and Medicare rate cuts. Overall, the positive highlights were substantial but somewhat offset by the pressing issues.Q1-2025 Updates
Positive Updates
Record First Quarter Visits Per Clinic Per Day
The company achieved the highest first quarter visits per clinic per day in its history, ending March with 33.2 visits per clinic per day, despite weather challenges.
Increase in Adjusted EBITDA
Adjusted EBITDA increased by 16.5% despite headwinds, with a significant performance boost in March.
Strong Growth in Injury Prevention Segment
The Injury Prevention segment saw a 29% year-over-year increase in revenue and profit, driven by organic growth and new contracts.
Metro Acquisition Performance
The Metro acquisition, completed in November, showed a strong visit per clinic per day increase from 44 in January to 50 in March.
Workers' Compensation Revenue Growth
Workers' compensation as a percentage of revenue increased to 10.9%, the highest since 2020, contributing significantly to revenue mix improvement.
Successful Contract Negotiations
The company successfully increased net rates, with a notable $2.29 per visit increase over the previous year, despite a 2.9% Medicare rate cut.
Negative Updates
Impact of Weather on Mature Clinics
Severe weather conditions in key markets like Nashville and Texas resulted in significant visit losses, particularly affecting mature clinics.
Decreased Physical Therapy Margins
Physical therapy margins decreased from 17.9% in the first quarter of 2024 to 16.3% in the first quarter of 2025, influenced by acquisitions with initially lower margins.
Challenges with Medicare Rate Cuts
The company faced a cumulative $20 million profit impact due to ongoing Medicare rate cuts since 2021, despite efforts to mitigate the effects.
Company Guidance
During the U.S. Physical Therapy First Quarter 2025 Conference Call, CEO Christopher Reading discussed the company's performance and provided various metrics. The first quarter saw a record high for visits per clinic per day, ending at 33.2 in March, despite a slow start due to weather impacts. The company also highlighted a 16.5% increase in adjusted EBITDA, reaching $2.8 million above the prior year. Metro, the largest acquisition completed in November, showed a similar progression in visits, starting at 44 per clinic per day in January and increasing to 50 by March. The company's net rate increased by $2.29 per visit year-over-year despite a 2.9% Medicare rate cut. The industrial injury prevention (IIP) business reported a 29% increase in revenue and a margin of 20.4%, consistent with the previous year. The company's physical therapy margin was slightly down to 16.3% from 17.9% the previous year, but March ended with a margin above 20%. The CFO, Carey Hendrickson, noted an improvement in adjusted EBITDA margin from 13.2% in the first quarter of 2024 to 13.7% in 2025. Overall, the company expressed optimism about continued growth and potential updates to guidance after further evaluation in the upcoming months.US Physical Therapy Corporate Events
Business Operations and StrategyFinancial Disclosures
US Physical Therapy Discusses Q1 2025 Financial Results
Neutral
May 13, 2025
On May 8, 2025, U.S. Physical Therapy, Inc. held a conference call and webcast to discuss its financial results for the first quarter ending March 31, 2025. The event provided insights into the company’s operational performance and strategic positioning, although the details of the call are not considered filed under the Securities Exchange Act of 1934.
The most recent analyst rating on (USPH) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on US Physical Therapy stock, see the USPH Stock Forecast page.
Spark’s Take on USPH Stock
According to Spark, TipRanks’ AI Analyst, USPH is a Neutral.
US Physical Therapy’s strengths lie in its revenue growth and strategic acquisitions, bolstered by strong patient volume and expansion efforts. However, the stock’s high valuation and technical indicators suggest caution. While earnings call insights and corporate events provide optimism, challenges in cost management and Medicare rate reductions remain key concerns.
To see Spark’s full report on USPH stock, click here.
Business Operations and StrategyFinancial Disclosures
US Physical Therapy Reports Strong Q1 2025 Results
Positive
May 7, 2025
U.S. Physical Therapy, Inc. reported strong financial results for the first quarter of 2025, with a 16.5% increase in adjusted EBITDA and a 16.4% rise in total revenue from physical therapy operations compared to the same period in 2024. The company saw record patient volume, with average daily visits per clinic reaching an all-time high, and continued to expand its clinic network through acquisitions and openings, despite challenges such as a Medicare rate reduction.
Spark’s Take on USPH Stock
According to Spark, TipRanks’ AI Analyst, USPH is a Neutral.
US Physical Therapy scores moderately with strengths in revenue growth and strategic acquisitions. However, concerns about net income volatility, rising debt levels, and a bearish technical outlook weigh on the stock. The valuation is on the higher side, which may deter some investors. Recent efforts to enhance operational efficiency and expand through acquisitions are positive, but challenges remain in achieving consistent profitability.
To see Spark’s full report on USPH stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
US Physical Therapy Approves New Executive Incentive Plans
Positive
Mar 28, 2025
On March 26, 2025, U.S. Physical Therapy, Inc. announced the approval of new incentive plans for its senior management, effective immediately. These plans include an Objective Long-Term Incentive Plan (LTIP) and a Discretionary LTIP, both offering Restricted Stock Awards (RSAs) based on performance metrics such as Adjusted EBITDA. The plans aim to align executives’ interests with shareholders by granting RSAs that vest over four years, starting in 2026, contingent on continued employment and performance goals. This move is expected to enhance executive retention and motivation, potentially impacting the company’s operational efficiency and market competitiveness.
M&A TransactionsBusiness Operations and Strategy
US Physical Therapy Acquires Wyoming Clinics for Expansion
Positive
Mar 3, 2025
On March 3, 2025, U.S. Physical Therapy, Inc. announced the acquisition of a physical therapy practice with three clinics in Wyoming, generating $4.3 million in annual revenues. The company acquired a 65% interest, while the current owners retained a 35% stake. This acquisition is expected to enhance U.S. Physical Therapy’s service offerings in Wyoming, leveraging the strong community relationships established by the new partners.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.