Stock analysis · Bull Rankings model

UHS analysis

Universal Health Services, Inc.Medical Care Facilities. Scored on the same transparent model behind the daily rankings.

UHS
Universal Health Services, Inc. · Medical Care Facilities
FCF$845mC+
Rev+10.0%B
D/E0.69C+
P/E7.2xA
PEG1.25B
69.1Score
$177.26$10.4B
1Y Target$193.94Analyst consensus · 17 analysts
5Y Target$244.85Compound horizon
10Y Target$314.01Long-dated conviction
FCF$845mTTM
C+
FCF $845m — respectable but not differentiating
Rev+10.0%TTM YoY
B
Revenue +10.0% — at or above S&P median
D/E0.69
C+
D/E 0.69 — above the Healthcare debt median (≈75th pctile)
P/E7.2x
A
P/E 7.2 — cheapest decile in Healthcare (≈10th pctile)
PEG1.25
B
PEG 1.25 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 69.1
Quality68.4
Growth58.6
Value82.2
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeMid-range
28% off the 12-month high
vs DCF fair value19% belowest. fair value ~$218
What the price assumes: free cash flow compounding at ~0% a year for the next decade — vs the ~7% a year our model projects from current growth and analyst estimates.
Quality signals · context only
ROIC13.2% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
UHS’s acute‑care hospital and behavioral‑health network is poised to compound earnings as its 10% FY revenue growth fuels a 8.4% profit margin and drives free cash flow of $845 million, delivering a free‑cash‑flow yield that outpaces peers. The Bull Rankings model gives the stock a 69.5/100 quality‑growth score, with Value as its strongest pillar, underscoring that the market is undervaluing this cash‑rich growth engine. The thesis hinges on sustained demand for integrated hospital‑plus‑behavioral services that keep the growth engine humming.
Moat
UHS’s moat stems from its vertically integrated acute‑care and behavioral‑health facilities that share central purchasing, IT, and finance platforms, creating cost efficiencies and pricing power that lift ROE to a sector‑leading 20.3%. This integrated model makes it costly for competitors to duplicate the breadth of services and the economies of scale across both segments.
Risk
The weakest pillar in our model is Growth, and the reverse‑DCF shows the current price assumes a -1% annual free‑cash‑flow growth, far below the 10% revenue expansion, suggesting the market doubts the durability of that growth. A modest 52‑week low of $140.08 and a beta of 1.06 mean any slowdown in hospital admissions or tighter reimbursement could push the stock back toward its low, while the debt‑to‑equity of 0.69 leaves limited headroom for aggressive capex. A sustained dip in margins or a rise in debt would confirm the bear case.
Horizon
1-3 yr $193.94 (17-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $244.85 at ~7% CAGR — dividend + buyback compounding. 10 yr $314.01 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

UHS vs the Top Picks average

PillarUHSBook avgDiff
Quality0.680.84-0.15
Growth0.590.84-0.25
Value0.820.78+0.04

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-3.5 over 47 daily scores
From 72.6 (Jun 22) → 69.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-4.5%
90-day change-5.2%
Forward EPS estimate$24.02

Over the last 90 days, what analysts expect UHS to earn is materially lower (-5.2%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
11
Position size
$1,950
3.9% of portfolio
Stop price
$132.94
25% below $177.26
$ at risk if stopped
$487.46
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Universal Health Services, Inc. (UHS): score, valuation & FAQ

Universal Health Services, Inc. (UHS) is a Medical Care Facilities company that scores 69.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A). On valuation, UHS sits about 19% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade.

Is UHS a good stock to buy?

Bull Rankings scores UHS 69.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A). A score is a quantitative screen of Universal Health Services, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does UHS score 69.1 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). UHS earns its highest marks on P/E (A). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is UHS overvalued or undervalued?

Based on $177.26, UHS sits about 19% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 0% annual free-cash-flow growth over the next decade. It trades at a 7.2x P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in UHS?

The weakest pillar in our model is Growth, and the reverse‑DCF shows the current price assumes a -1% annual free‑cash‑flow growth, far below the 10% revenue expansion, suggesting the market doubts the durability of that growth. A modest 52‑week low of $140.08 and a beta of 1.06 mean any slowdown in hospital admissions or tighter reimbursement could push the stock back toward its low, while the debt‑to‑equity of 0.69 leaves limited headroom for aggressive capex. A sustained dip in margins or a rise in debt would confirm the bear case.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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