Universal Health Services Inc (UHS)'s Winning Formula: Financial Metrics and Competitive Strengths

Delving into the Robust Financial Health and Growth Trajectory of UHS

Universal Health Services Inc (UHS, Financial) has recently garnered attention from the investment community, buoyed by its solid financial performance. With its stock price at $138.38, the company has enjoyed a daily increase of 1.72% and a three-month growth of 6.02%. A deep dive into the company's GF Score reveals a promising outlook for Universal Health Services Inc, indicating a strong potential for future growth.

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What Is the GF Score?

The GF Score is an exclusive stock performance ranking system by GuruFocus, which evaluates stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a greater likelihood of generating superior returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance.

With a high GF Score of 94 out of 100, Universal Health Services Inc is poised for exceptional performance, reflecting its strong profitability and growth metrics.

Understanding Universal Health Services Inc's Business

Universal Health Services Inc, with a market cap of $9.44 billion and sales of $14.03 billion, operates with an operating margin of 7.88%. The company owns and operates a diverse portfolio of acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. It functions through two primary segments: Acute Care Hospital Services and Behavioral Health Services, providing a comprehensive range of healthcare services.

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Profitability Rank Breakdown

Universal Health Services Inc's Profitability Rank is an impressive 9 out of 10, indicating its superior ability to generate profits compared to its industry peers. This is further supported by the Piotroski F-Score, which assesses the company's financial health across nine criteria, confirming its robust financial condition. Additionally, the company's Predictability Rank of 5 stars reflects its consistent operational performance, instilling confidence in investors.

Growth Rank Breakdown

Universal Health Services Inc's high Growth Rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 12.4% surpasses 60.78% of companies in the Healthcare Providers & Services industry. The growth in EBITDA over the past three and five years, at rates of 3.3 and 5.3 respectively, highlights Universal Health Services Inc's sustained growth capabilities.

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Next Steps

Considering Universal Health Services Inc's financial strength, profitability, and growth metrics, the GF Score accentuates the company's exceptional position for potential market outperformance. Investors seeking similar high-performing opportunities can explore more companies with strong GF Scores through the GF Score Screen available to GuruFocus Premium members.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.