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US Physical Therapy
(NYSE:USPH)
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Rating:64Neutral
Price Target:
$82.00
▲(9.95% Upside)
Action:Reiterated
Date:08/07/26
USPH scores as a balanced but not compelling setup: financial performance is pressured by a TTM revenue decline and sharply thinner profitability/ROE, even as leverage remains manageable and cash generation is still solid. Technicals are supportive with price above key moving averages and positive MACD. The main offsetting risk is valuation—an extremely high P/E (158) leaves little room for execution missteps, despite a 2.3% dividend yield. Earnings-call tone was constructive with reaffirmed EBITDA guidance and strong visit/revenue momentum, but margin headwinds remain the key watch item.
Positive Factors
Durable cash generation
Consistent TTM cash generation (OCF ~$87M; FCF ~$63M) provides durable funding for clinic rollouts, tuck‑ins, integration costs and dividends. Strong cash flow preserves financial flexibility, smooths working capital needs and supports strategic investments despite margin cycles.
Negative Factors
Compressed profitability and weak ROE
Very low TTM net margin (~1.7%) and ROE (~2.5%) indicate limited ability to convert revenue into sustainable shareholder returns. Persistent weak profitability reduces internal funding capacity, increases sensitivity to reimbursement shifts, and constrains long‑term return generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable cash generation
Consistent TTM cash generation (OCF ~$87M; FCF ~$63M) provides durable funding for clinic rollouts, tuck‑ins, integration costs and dividends. Strong cash flow preserves financial flexibility, smooths working capital needs and supports strategic investments despite margin cycles.
Read all positive factors
US Physical Therapy (USPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.20B
Dividend Yield2.3%
Average Volume (3M)217.38K
Price to Earnings (P/E)158.1
Beta (1Y)0.96
Revenue Growth13.73%
EPS Growth-77.14%
CountryUS
Employees6,374
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.17
Shares Outstanding15,218,789
10 Day Avg. Volume219,904
30 Day Avg. Volume217,381
Financial Highlights & Ratios
PEG Ratio-2.41
Price to Book (P/B)2.49
Price to Sales (P/S)1.52
P/FCF Ratio19.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.33Price Target Upside19.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.8
Revenue Forecast (FY)$839.53M
US Physical Therapy Business Overview & Revenue Model
Company Description
U.S. Physical Therapy, Inc., through its various subsidiaries, manages a network of outpatient physical therapy facilities. These clinics deliver a range of services, including rehabilitation before and after surgery, treatment for musculoskeletal...
How the Company Makes Money
USPH generates revenue primarily by delivering outpatient rehabilitation services and being reimbursed for those services. The company’s core revenue stream comes from patient visits at its outpatient physical therapy clinics, where it bills third...
US Physical Therapy Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call portrays strong operational momentum — solid revenue growth, record visit volumes, improving revenue per visit, active M&A and an expanding hospital-affiliation pipeline that management expects will materially lift results in late 2023 and 2027. Near-term profitability was pressured by elevated employee self-insured medical costs, front-loaded hiring for hospital rollouts and integration costs, leading to margin compression, lower net income and EPS. Management reaffirmed full-year adjusted EBITDA guidance and highlighted meaningful upside from ongoing hospital affiliations and rate increases, indicating confidence in future performance.Positive Updates
Revenue Growth
Total Q2 2026 revenue was $214.0M, up 8.5% year-over-year; Physical Therapy revenue was $182.0M, up 8.4% YoY; Industrial Injury Prevention (IIP) revenue was $32.0M, up 9.1% YoY.
Negative Updates
PT Gross Margin Pressure
Adjusted physical therapy gross profit margin declined to 19.9% in Q2 2026 from 21.4% in Q2 2025 (down 1.5 percentage points), driven by higher employee medical costs and front-loaded hospital implementation costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total Q2 2026 revenue was $214.0M, up 8.5% year-over-year; Physical Therapy revenue was $182.0M, up 8.4% YoY; Industrial Injury Prevention (IIP) revenue was $32.0M, up 9.1% YoY.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 adjusted EBITDA guidance of $102–$106 million, citing Q2 momentum — total revenue $214.0M (+8.5%), PT revenue $182.0M (+8.4%), 1,662,000 visits (+6.6%), average daily visits per clinic a record 33.5, and PT revenue per visit $107.59 (+$2.26) — and expects hospital affiliations and rate lifts to drive back‑half strength. The 2026 outlook assumes a 1.75% Medicare increase (1.1% after Medicare Advantage mix), equating to roughly $2.5M of lift (~$0.35 per visit); Q2 included $5.6M of hospital‑affiliation revenue and management indicated remaining integrations should add roughly $1.5–$2.0M in Q4 with materially more benefit in 2027 (prior modeled hospital contribution ~$7.3M and now expected to be higher). They noted headwinds — a YTD ~$3.2M adverse swing from self‑insured medical claims and front‑loaded hiring that pressured margins (adjusted PT gross margin 19.9%, adjusted salaries & related 57.5% of revenue) — while retaining liquidity (cash $25M, $221M borrowings, $229M revolver availability on a $450M facility with $125M accordion) and continuing M&A (recent 12‑clinic deal: $16.4M purchase generating ~$12M annual revenue and ~112k visits).US Physical Therapy Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 738.26M | 780.99M | 671.35M | 604.80M | 553.14M | 495.02M |
| Gross Profit | 153.43M | 157.34M | 123.92M | 121.51M | 112.02M | 117.18M |
| EBITDA | 88.87M | 109.66M | 86.91M | 74.37M | 76.09M | 85.73M |
| Net Income | 2.26M | 15.06M | 26.46M | 14.67M | 28.27M | 27.82M |
Balance Sheet | ||||||
| Total Assets | 1.25B | 1.20B | 1.17B | 997.24M | 858.15M | 749.43M |
| Cash, Cash Equivalents and Short-Term Investments | 24.89M | 35.57M | 41.36M | 152.82M | 31.59M | 28.57M |
| Total Debt | 171.22M | 425.74M | 295.23M | 258.59M | 295.34M | 223.08M |
| Total Liabilities | 482.22M | 433.81M | 408.42M | 345.00M | 373.59M | 296.98M |
| Stockholders Equity | 448.66M | 476.43M | 488.93M | 476.19M | 315.79M | 295.61M |
Cash Flow | ||||||
| Free Cash Flow | 62.70M | 60.99M | 65.75M | 72.68M | 50.29M | 68.20M |
| Operating Cash Flow | 87.05M | 75.06M | 74.94M | 81.98M | 58.54M | 76.41M |
| Investing Cash Flow | -103.58M | -36.71M | -149.45M | -45.02M | -81.27M | -124.14M |
| Financing Cash Flow | 199.00K | -44.14M | -36.95M | 84.27M | 25.76M | 43.38M |
US Physical Therapy Technical Analysis
Positive
74.58
Price Trends
70.00
Positive
70.32
Positive
75.18
Positive
Market Momentum
2.33
Positive
63.61
Neutral
61.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USPH, the sentiment is Positive. The current price of 74.58 is below the 20-day moving average (MA) of 75.72, above the 50-day MA of 70.00, and below the 200-day MA of 75.18, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USPH.
US Physical Therapy Risk Analysis
US Physical Therapy disclosed 27 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.60B | 13.47 | 24.12% | ― | 5.22% | 1109.87% | |
71 Outperform | $2.18B | 12.87 | 19.89% | ― | -2.25% | ― | |
64 Neutral | $1.20B | 158.12 | 0.48% | 2.44% | 13.73% | -77.14% | |
62 Neutral | $1.40B | 45.30 | 9.51% | ― | 36.76% | 11.22% | |
53 Neutral | $1.30B | -39.10 | 3.15% | ― | 19.87% | 79.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
USPH
US Physical Therapy
80.05
-4.53
-5.35%
AMN
AMN Healthcare Services
36.00
19.51
118.31%
HCSG
Healthcare Services
22.23
7.76
53.63%
MD
Pediatrix Medical Group
27.08
12.96
91.78%
PNTG
Pennant Group
39.00
12.85
49.14%
US Physical Therapy Corporate Events
Dividends
U.S. Physical Therapy Declares Quarterly Cash Dividend
Positive
Aug 6, 2026
U.S. Physical Therapy’s board of directors has declared a quarterly cash dividend of $0.46 per share, underscoring the company’s ongoing capital return program to shareholders in the healthcare services sector. The dividend is schedule...
Executive/Board ChangesShareholder Meetings
US Physical Therapy Shareholders Back Board, Pay, Auditor
Positive
May 19, 2026
On May 19, 2026, U.S. Physical Therapy, Inc. held its Annual Meeting of Shareholders, where investors voted on three governance and oversight proposals. Shareholders elected seven directors, including Christopher J. Reading and Peter F. Minan, to ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
U.S. Physical Therapy Posts Strong Q1 2026 Revenue Growth
Positive
May 11, 2026
On May 7, 2026, U.S. Physical Therapy reported first-quarter 2026 results, highlighting a 7.9% year-over-year increase in total revenue to $198 million and a 7.2% rise in physical therapy revenue driven by higher patient volumes and a 2.5% same-st...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.