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United Therapeutics Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

United Therapeutics has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for United Therapeutics's Piotroski F-Score or its related term are showing as below:

UTHR' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of United Therapeutics was 8. The lowest was 1. And the median was 6.


United Therapeutics Piotroski F-Score Historical Data

The historical data trend for United Therapeutics's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Therapeutics Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 2.00 6.00 6.00

United Therapeutics Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 6.00 8.00 7.00

Competitive Comparison

For the Biotechnology subindustry, United Therapeutics's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

United Therapeutics Piotroski F-Score Distribution

For the Biotechnology industry and Healthcare sector, United Therapeutics's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where United Therapeutics's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 162.7 + 112.2 + 239.9 + 116 = $631 Mil.
Cash Flow from Operations was 185.6 + 174.6 + 288.7 + 127 = $776 Mil.
Revenue was 444.7 + 415.2 + 461.9 + 466.9 = $1,789 Mil.
Gross Profit was 417 + 380.6 + 436 + 437.2 = $1,671 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(4844.9 + 5048.9 + 5169.1 + 5359.8 + 5543.3) / 5 = $5193.2 Mil.
Total Assets at the begining of this year (Jun21) was $4,845 Mil.
Long-Term Debt & Capital Lease Obligation was $800 Mil.
Total Current Assets was $2,684 Mil.
Total Current Liabilities was $332 Mil.
Net Income was 171.2 + 98.8 + 28.3 + 172.6 = $471 Mil.

Revenue was 380.1 + 384.9 + 379.1 + 446.5 = $1,591 Mil.
Gross Profit was 356.1 + 350.1 + 356.1 + 409.3 = $1,472 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(4219.4 + 4411.2 + 4615 + 4641 + 4844.9) / 5 = $4546.3 Mil.
Total Assets at the begining of last year (Jun20) was $4,219 Mil.
Long-Term Debt & Capital Lease Obligation was $800 Mil.
Total Current Assets was $2,318 Mil.
Total Current Liabilities was $311 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

United Therapeutics's current Net Income (TTM) was 631. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

United Therapeutics's current Cash Flow from Operations (TTM) was 776. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=630.8/4844.9
=0.13019877

ROA (Last Year)=Net Income/Total Assets (Jun20)
=470.9/4219.4
=0.11160355

United Therapeutics's return on assets of this year was 0.13019877. United Therapeutics's return on assets of last year was 0.11160355. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

United Therapeutics's current Net Income (TTM) was 631. United Therapeutics's current Cash Flow from Operations (TTM) was 776. ==> 776 > 631 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=800/5193.2
=0.1540476

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=800/4546.3
=0.17596727

United Therapeutics's gearing of this year was 0.1540476. United Therapeutics's gearing of last year was 0.17596727. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=2684.3/331.5
=8.0974359

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=2317.9/311.4
=7.44348105

United Therapeutics's current ratio of this year was 8.0974359. United Therapeutics's current ratio of last year was 7.44348105. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

United Therapeutics's number of shares in issue this year was 48.1. United Therapeutics's number of shares in issue last year was 47.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1670.8/1788.7
=0.93408621

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1471.6/1590.6
=0.92518546

United Therapeutics's gross margin of this year was 0.93408621. United Therapeutics's gross margin of last year was 0.92518546. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=1788.7/4844.9
=0.36919235

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=1590.6/4219.4
=0.37697303

United Therapeutics's asset turnover of this year was 0.36919235. United Therapeutics's asset turnover of last year was 0.37697303. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

United Therapeutics has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

United Therapeutics  (NAS:UTHR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


United Therapeutics Piotroski F-Score Related Terms

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United Therapeutics Business Description

United Therapeutics logo
Traded in Other Exchanges
Address
1040 Spring Street, Silver Spring, MD, USA, 20910
United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
Executives
Benkowitz Michael officer: President and COO C/O UNITED THERAPEUTICS CORP 1040 SPRING STREET SILVER SPRING MD 20910
Maxwell Linda director 1040 SPRING STREET SILVER SPRING NC 27709
Thompson Tommy G director 7711 CARONDELET ST. LOUIS MO 63105
Mesa Nilda director C/O UNITED THERAPEUTICS CORPORATION 1040 SPRING STREET SILVER SPRING MD 20910
Klein Katherine J director STEINBERG HALL-DIETRICH HALL 3620 LOCUST WALK PHILADELPHIA PA 19104
Giltner Richard director C/O UNITED THERAPEUTICS CORPORTION 1735 CONNECTICUT AVE. NW WASHINGTON DC 20009
Olian Judy D. director 2000 AVENUE OF THE STARS 12TH FL LOS ANGELES CA 90067
Edgemond James officer: CFO and Treasurer 1040 SPRING STREET SILVER SPRING MD 20910
Zaccardelli David officer: EVP & Chief Operating Officer 300 TRI STATE INTERNATIONAL SUITE 272 LINCOLNSHIRE IL 60069
Eli Lilly & Co 10 percent owner LILLY CORPORATE CENTER DROP CODE 1094 INDIANAPOLIS IN 46285
Ferrari John Maxim officer: CFO & Treasurer 1110 SPRING STREET SILVER SPRING MD 20910
Patusky Christopher director
Hicks Henry Beecher Iii director C/O UNITED THERAPEUTICS CORP 1110 SPRING STREET SILVER SPRINGS MD 20910
Gray R Paul director C/O UNITED THERAPEUTICS CORP 1110 SPRING STREET SILVER SPRINGS MD 20910
Dwek Raymond director

United Therapeutics Headlines

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