Universal Health (UHS) AI Stock Analysis

• Market Cap: $10.98B
• Dividend Yield: 0.47%
• Average Volume (3M): 768.68K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.78
• Revenue Growth: 9.73%
• EPS Growth: 51.87%
• Country: US
• Employees: 99,300
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Care Facilities
• EPS (TTM): 4.84
• Shares Outstanding: 57,189,716
• 10 Day Avg. Volume: 887,806
• 30 Day Avg. Volume: 768,678
• PEG Ratio: 0.16
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.63
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $229.00
• Price Target Upside: 33.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $190.00 ▲(10.96%Upside)

Universal Health Services presents a mixed investment outlook. The most significant strengths include strong financial performance and promising earnings growth. However, technical analysis signals a bearish trend, and uncertainties around Medicaid payments and cash flows present risks. The valuation appears favorable with low P/E, but dividend yield is modest.

Positive Factors

Financial Performance

Adjusted EPS of $4.84 beat Street estimates by 11%.

Revenue Growth

Revenue per adjusted admission in behavioral health was up 7.2% y/y, above the Street at 5.1%.

Valuation

The stock is trading toward the low end of its valuation, suggesting potential for upward movement.

Negative Factors

Behavioral Adjusted Admissions

In behavioral health, adjusted admissions declined 1.6% y/y, well below the Street at +2.9%.

Behavioral Segment

Behavioral volumes were soft with no volume growth, attributed to calendar headwinds and winter weather impacting referrals.

Market Expectations

Revenue increased 6.7% y/y to $4.1bn, missing the Street by 1.4%.

Universal Health Business Overview & Revenue Model

Company Description

Universal Health Services, Inc. (UHS) is a leading healthcare management company, operating through its subsidiaries in the United States and the United Kingdom. The company primarily focuses on providing quality healthcare services through its acute care hospitals, behavioral health facilities, and outpatient centers. UHS is committed to offering comprehensive healthcare solutions that cater to a wide range of patient needs, ensuring excellence in medical treatment and patient care.

How the Company Makes Money

Universal Health Services, Inc. generates revenue through its network of acute care hospitals and behavioral health facilities. The primary revenue streams include patient service revenues, which are derived from hospital admissions, outpatient consultations, and various healthcare services provided to patients. UHS also benefits from contracts with government programs like Medicare and Medicaid, as well as agreements with private health insurance companies. The company collaborates with insurers and other healthcare providers to expand its service reach and enhance patient care, which contributes significantly to its earnings. Additionally, UHS's strategic acquisitions and expansions into new markets provide avenues for increased revenue and market share.

Universal Health Financial Statement Overview

Summary

Universal Health exhibits strong financial health characterized by consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a healthy equity ratio and strong cash flows, although leverage is moderate.

Income Statement

Universal Health has demonstrated consistent revenue growth with a notable increase in total revenue from $11.56 billion in 2020 to $16.08 billion in TTM 2025. The gross profit margin remains robust, indicating effective cost management. Net profit margin has improved, reflecting enhanced operational efficiency. EBIT and EBITDA margins are strong, indicating solid profitability in core operations.

Balance Sheet

The company maintains a healthy equity ratio, with stockholders' equity consistently representing a substantial portion of total assets. The debt-to-equity ratio shows moderate leverage, which is manageable given the company's strong equity base. Return on equity is improving, demonstrating effective use of equity capital.

Cash Flow

Operating cash flow is strong, consistently exceeding net income, indicating good cash conversion. Free cash flow has grown significantly, supporting further investment and debt management. The cash flow metrics reflect strong financial health with ample liquidity to support operations and strategic initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.42B	15.83B	14.28B	13.40B	12.64B	11.56B
	Gross Profit
8.42B	14.24B	12.75B	11.93B	11.21B	10.27B
	EBIT
1.29B	1.68B	1.18B	1.00B	1.36B	1.36B
	EBITDA
1.69B	2.27B	1.74B	1.58B	1.91B	1.87B
	Net Income Common Stockholders
700.06M	1.14B	717.79M	675.61M	991.59M	943.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
764.50M	125.98M	119.44M	102.82M	115.30M	1.22B
	Total Assets
13.10B	14.47B	13.97B	13.49B	13.09B	13.48B
	Total Debt
3.94B	4.96B	5.37B	5.27B	4.56B	4.19B
	Net Debt
3.18B	4.83B	5.25B	5.17B	4.44B	2.97B
	Total Liabilities
6.49B	7.71B	7.77B	7.52B	6.90B	7.07B
	Stockholders Equity
6.51B	6.75B	6.15B	5.92B	6.09B	6.32B
Cash Flow		Free Cash Flow
307.34M	1.12B	524.74M	262.02M	28.04M	1.63B
	Operating Cash Flow
1.29B	2.07B	1.27B	996.02M	883.70M	2.36B
	Investing Cash Flow
-983.04M	-911.11M	-763.27M	-647.30M	-914.47M	-802.56M
	Financing Cash Flow
-289.30M	-1.14B	-493.94M	-318.40M	-1.07B	-384.86M

Universal Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 171.24
• 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 UHS, the sentiment is Negative. The current price of 171.24 is below the 20-day moving average (MA) of 182.50, below the 50-day MA of 180.71, and below the 200-day MA of 193.88, indicating a bearish trend. The MACD of -3.81 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UHS.

Universal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOH	76 Outperform	$15.73B	14.12	26.72%	―	16.71%	12.23%
THC	71 Outperform	$15.26B	11.07	38.12%	―	-1.79%	-41.85%
MEDP	71 Outperform	$8.65B	22.74	65.82%	―	9.87%	32.81%
EHC	68 Neutral	$12.15B	24.88	25.33%	0.56%	11.21%	30.38%
UHS	64 Neutral	$10.98B	9.57	18.35%	0.47%	9.73%	51.87%
ACHC	60 Neutral	$1.95B	10.23	6.35%	―	5.48%	―
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%

Universal Health Corporate Events

Universal Health Holds Annual Stockholders Meeting

On May 14, 2025, Universal Health held its Annual Meeting of Stockholders virtually. During the meeting, stockholders elected two Class II members to the Board of Directors for a term ending in 2028, ratified PricewaterhouseCoopers, LLP as the independent accounting firm for 2025, and voted against a proposal for annual director elections.

The most recent analyst rating on (UHS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Universal Health stock, see the UHS Stock Forecast page.

Universal Health Sets 2025 Executive Compensation Goals

On March 19, 2025, Universal Health’s Compensation Committee approved the 2025 annual incentive bonus performance goals and long-term incentive stock-based compensation awards for its executive officers. The bonuses for executives like Marc D. Miller and Steve G. Filton will be based entirely on corporate performance criteria, while others like Edward H. Sim and Matthew J. Peterson will have their bonuses partially determined by divisional income targets. Additionally, the company has updated employment agreements for Marc D. Miller and Alan B. Miller, outlining salary increases and conditions for bonuses and stock-based incentives.