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UHS

S&P 500
Favorable · 65/100

Universal Health Services

Health Care
Health Care Facilities

$172.20

1.5%

Updated Aug 7, 11:30 AM ET

Report Card

UHS at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 65/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 17.6% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$9.58B

P/E

6.69x

Forward P/E (est.)

4.97x

ROE

21.0%

Revenue Growth

10.4%

EPS Growth

34.8%

Profit Margin

8.6%

FCF Yield

11.9%

Debt / Equity

0.65x

ROIC

13.0%

Interest Coverage

12.78x

Current Ratio

1.08x

Dividend Yield

0.6%

Implied Growth (rev. DCF)

0.1%

Rating Score

65/100

Business Overview
Research

Universal Health Services (UHS) is a mid-cap company in the Health Care Facilities industry, part of the Health Care sector of the S&P 500, with a market value around $9.58B.

In its latest reported year it generated about $17.36B in revenue and $1.49B in net profit.

Our model rates UHS Favorable (65/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (10 years of history).

Narrow moat signalsMoat evidence score: 64/100

Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.

Operating margin level8/100

10.1% average over the last 3 years

Operating margin stability80/100

±1.6 pts around 10.7% across 10 years

Revenue durability100/100

grew in 9 of the last 9 year-over-year periods

Free-cash-flow consistency100/100

positive in 10 of 10 years

Return on invested capital40/100

13.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what UHS's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. UHS trades near $172.20, around its 50-day average ($156.99) and 200-day average ($196.04). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 72 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. UHS's is $3.95 (~2.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month UHS found buyers near $140.08 (support) and sellers near $161.47 (resistance); its 52-week range is $140.08–$246.33. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.3× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

8.3%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $9.77B in 2016 to $17.36B in 2025, a 6.6% compound annual growth rate. The most recent year grew a steady 10.4% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

Operating Margin

11.5%

Net Margin

8.6%

ROE

21.0%

Universal Health Services keeps about 8.6% of each sales dollar as net profit. Return on equity is 21.0% and return on invested capital about 13.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$4.70B

Net Debt

$4.58B

Net Debt / EBITDA

2.3x

Debt / Equity

0.65x

Leverage: debt-to-equity is 0.7x, and operating profit covers interest about 12.8x, with a current ratio of 1.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.70B of total debt against $119.03M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.86B

Free Cash Flow

$849.25M

FCF Margin

4.9%

In the latest year Universal Health Services produced about $1.86B of operating cash flow and $849.25M of free cash flow after capital spending. That is a free-cash-flow yield of about 11.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Dividend Safety

Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.

BorderlineSafety score: 55/100

The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.

Dividend yield

0.6%

Per share (latest FY)

$0.80

Total paid (latest FY)

$51.27M

History on record

9 years

Free-cash-flow coverage100/100

dividend uses 6% of free cash flow

Earnings payout ratio100/100

3% of net income paid out

Raise streak0/100

no current raise streak

Cut history0/100

payout was cut at least once in the last 9 years

Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.

Valuation Analysis
Research
4/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

6.69x

P/S

0.5x

P/B

2.19x

EV / EBITDA

UHS trades at 6.7x trailing earnings (about 5.0x on estimated forward earnings), 0.5x sales, and 2.2x book value. Reverse-engineering today's price implies the market expects roughly 0.1% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

Current price

$172.20

+118% · Below fair-value estimate

Starting FCF (latest 10-K)

$849.25M

Growth, years 1–5

10.4%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$8.67B
PV of terminal value$12.22B
Estimated equity value$20.89B

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where UHS sits versus its Health Care sector peers in the S&P 500.

TTM P/E
6.7xCheap
Forward P/E
5.0xCheap
P/S ratio
0.5xCheap
Revenue growth
10.4%Average
EPS growth
34.8%Strong
Gross margin
Net margin
8.6%Average
ROE
21.0%Average

Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How UHS stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.

In the Health Care sector (324 S&P 500 companies), UHS ranks #21 of 324 by our overall rating. It trades at a discount versus the sector on earnings (6.7x P/E vs. 27.3x median) with a higher return on equity (21.0% vs. 14.1%) and faster revenue growth (10.4% vs. 7.6%).

P/E vs sector

6.7x

median 27.3x

ROE vs sector

21.0%

median 14.1%

Growth vs sector

10.4%

median 7.6%

Sector rank

#21

of 324 by rating

CompanyP/ERev Gr.Rating
UHSThis stock6.7x10.4%Favorable· 65
HCA13.4x6.7%Favorable· 61
HSIC25.6x5.6%Weak· 41
EHC17.3x10.1%Favorable· 65
GMED18.5x23.5%Strong· 77
TECH104.3x0.2%Weak· 29
CRL0.1%Weak· 30
PODD32x31.9%Neutral· 52
Health Care median27.3x7.6%0/100

Valuation vs. quality map

sector medianHCAHSICEHCGMEDTECHPODDUHSP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $172.20 today · expected CAGR 6%16%

Metric20262027202820292030
Revenue$19.10B$21.01B$23.11B$25.42B$27.97B
Net income$1.72B$1.89B$2.08B$2.29B$2.52B
EPS$30.89$33.98$37.38$41.12$45.23
Share price (low)$154.46$169.91$186.90$205.59$226.15
Share price (high)$247.14$271.85$299.04$328.94$361.83
CAGR (low–high)-10% / 44%-1% / 26%3% / 20%5% / 18%6% / 16%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for UHS:

  • Revenue is growing 10.4% a year, a sign of real demand.
  • Strong return on equity (21.0%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~11.9%) funds buybacks and dividends.
  • Our model's overall read is Favorable (65/100).
Bear Case

The case against UHS:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Universal Health Services is a mid-cap health care business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 6.7x earnings, which our model scores Favorable (65/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 26 Wall Street analysts covering UHS recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Hold
consensus · score 3.4 / 5 across 26 analysts
Strong Buy 3Buy 6Hold 16Sell 1Strong Sell 0

Analysts have turned more cautious over the last three months (-9 pts of buy ratings).

Latest SEC Filings

UHS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

In the Idea Lab

UHS — frequently asked questions

Is UHS a good stock to buy?

We don't give buy or sell advice. Our model rates Universal Health Services Favorable (65/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is UHS's rating on The Stocks School?

Universal Health Services currently scores 65/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does UHS's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Universal Health Services's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for UHS calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this UHS analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell UHS. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.