United Therapeutics (UTHR) AI Stock Analysis

• Market Cap: $13.31B
• Dividend Yield: N/A
• Average Volume (3M): 445.42K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.59
• Revenue Growth: 19.85%
• EPS Growth: 21.16%
• Country: US
• Employees: 1,305
• Sector: Healthcare
• Sector Strength: 54
• Industry: Biotechnology
• EPS (TTM): 6.63
• Shares Outstanding: 45,106,625
• 10 Day Avg. Volume: 420,176
• 30 Day Avg. Volume: 445,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $364.40
• Price Target Upside: 20.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

United Therapeutics demonstrates strong financial performance with robust growth and profitability metrics, supported by a stable balance sheet and cash flow. The earnings call provided a positive outlook with record revenue growth and strategic investments. Technical analysis presents a neutral outlook, while valuation indicates reasonable pricing relative to earnings. The overall score reflects a strong financial foundation with a positive growth trajectory, albeit tempered by competitive pressures and technical market signals.

Positive Factors

Financial Performance

United Therapeutics has delivered 11 consecutive quarters of double-digit revenue growth.

Pipeline Advancement

Multiple growth drivers for the commercial business and continued pipeline advancement could drive meaningful upside in the stock vs current levels.

Product Growth

Tyvaso DPI can drive longer term sustained growth based on device convenience, additional dosing potential with titration, and aligned payer incentives.

Negative Factors

Competitive Threats

The company faces competitive headwinds to its core cardiopulmonary franchises, which are factored into the stock's valuation.

Innovative Threats

There is a bigger overhang from Insmed’s Ph2 TPIP data, which is considered a disruptive innovator threat emerging at the end of the decade.

United Therapeutics Business Overview & Revenue Model

Company Description

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. Its commercial therapies include Remodulin to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Tyvaso, an inhaled formulation of prostacyclin analogue treprostinil to enhance the exercise ability in PAH patients and pulmonary hypertension associated with interstitial lung disease (PH-ILD); Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Unituxin, a monoclonal antibody for treating high-risk neuroblastoma; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. The company also engages in developing Tyvaso DPI, a dry powder inhalation form of Tyvaso; Remunity Pump, a small, lightweight, durable pump and separate controller; RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Tyvaso PERFECT and TETON studies, which are the studies of Tyvaso in patients with World Health Organization (WHO) Group 3 pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD). It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.

How the Company Makes Money

United Therapeutics generates revenue through the sale of its pharmaceutical products, primarily targeting rare diseases like pulmonary arterial hypertension (PAH). The company earns money by manufacturing and distributing its FDA-approved drugs, including Remodulin, Tyvaso, and Orenitram, which are available in various formulations. These products are sold directly to healthcare providers, specialty pharmacies, and distributors. Additionally, United Therapeutics engages in licensing agreements and collaborations with other biotechnology firms and research institutions to expand its product offerings and enhance its research capabilities, which can also contribute to its revenue streams. The company's financial performance is influenced by factors such as drug pricing, regulatory approvals, and market competition.

United Therapeutics Financial Statement Overview

Summary

United Therapeutics demonstrates strong financial performance, highlighted by robust revenue and profit margins, low leverage, and stable cash flow. The income statement shows impressive growth and efficiency, while the balance sheet indicates financial stability with high equity ratios. Cash flow metrics are solid, supporting operational needs and growth.

Income Statement

United Therapeutics has demonstrated strong financial performance with a consistent increase in total revenue over multiple years. The TTM revenue growth rate is approximately 4.06%, and the gross profit margin stands at a robust 89.00%. Net profit margin is currently 40.43%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also strong, at 46.87% and 52.21% respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet is marked by a strong equity position with an equity ratio of 87.89%, indicating a low reliance on debt. The debt-to-equity ratio is low at 0.03, showcasing financial stability. Return on equity is a healthy 17.79%, reflecting effective use of equity capital in generating profits. However, the relatively low total liabilities suggest limited financial leverage.

Cash Flow

The company has demonstrated positive cash flow metrics with a free cash flow growth rate of 4.45%. The operating cash flow to net income ratio is 1.17, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.93, showing efficient translation of earnings into free cash flow. The cash flow is stable and supports the company's operational needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.88B	2.33B	1.94B	1.69B	1.48B
	Gross Profit
2.57B	2.07B	1.79B	1.56B	1.38B
	EBIT
1.38B	1.18B	979.70M	555.90M	593.60M
	EBITDA
1.65B	1.39B	1.04B	736.80M	646.30M
	Net Income Common Stockholders
1.20B	984.80M	727.30M	475.80M	514.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.27B	2.99B	4.15B	3.58B	2.98B
	Total Assets
7.36B	7.17B	6.04B	5.17B	4.62B
	Total Debt
300.00M	700.00M	800.00M	800.00M	800.00M
	Net Debt
-1.40B	-507.70M	-161.20M	-94.80M	61.30M
	Total Liabilities
920.00M	1.18B	1.25B	1.21B	1.22B
	Stockholders Equity
6.44B	5.98B	4.80B	3.96B	3.40B
Cash Flow		Free Cash Flow
1.08B	747.60M	663.70M	477.40M	696.40M
	Operating Cash Flow
1.33B	978.00M	802.50M	598.20M	755.70M
	Investing Cash Flow
417.20M	-719.60M	-811.50M	-486.90M	-738.50M
	Financing Cash Flow
-1.25B	-11.90M	75.40M	44.80M	-16.90M

United Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 301.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTHR, the sentiment is Negative. The current price of 301.42 is above the 20-day moving average (MA) of 293.90, below the 50-day MA of 302.17, and below the 200-day MA of 343.78, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UTHR.

United Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	81 Outperform	$13.02B	11.54	23.16%	―	30.43%	82.29%
EXEL	80 Outperform	$10.16B	20.80	23.13%	―	18.49%	176.71%
UTHR	78 Outperform	$13.31B	11.77	19.94%	―	19.85%	21.16%
BMRN	77 Outperform	$11.44B	22.13	9.64%	―	17.99%	152.10%
INCY	75 Outperform	$11.54B	184.44	0.47%	―	17.13%	-88.78%
SMMT	53 Neutral	$17.97B	―	-123.93%	―	―	-99.70%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%

United Therapeutics Corporate Events

United Therapeutics Secures $2.5 Billion Credit Facility

On April 25, 2025, United Therapeutics Corporation entered into a Credit Agreement with Wells Fargo and other lenders, establishing an unsecured revolving credit facility of up to $2.5 billion, with the possibility of increasing by an additional $750 million. The agreement allows for refinancing existing debt and supporting general corporate purposes. Concurrently, the company borrowed $200 million to repay its previous 2022 Credit Agreement, which was terminated without penalties.

Spark’s Take on UTHR Stock

According to Spark, TipRanks’ AI Analyst, UTHR is a Outperform.

United Therapeutics’ overall score reflects its strong financial performance and positive outlook from the earnings call. The company benefits from robust revenue growth and strategic advancements in clinical trials. Despite technical indicators suggesting neutral momentum, the stock’s valuation remains attractive. The sequential decline in Q4 net revenue is a minor concern but is outweighed by the company’s long-term growth prospects.

To see Spark’s full report on UTHR stock, click here.