UNITED THERAPEUTICS Corp (NASDAQ: UTHR)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001082554
Market Cap 21.54 Bn
P/B 3.27
P/E 16.94
P/S 6.89
ROIC (Qtr) 16.78
Div Yield % 0.00
Rev 1y % (Qtr) 6.76
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Operating cash flow of 1.56B provides strong 11.47x coverage of stock compensation 135.70M, indicating sustainable incentive practices.
  • Operating cash flow of 1.56B provides exceptional 64.04x coverage of interest expenses 24.30M, showing strong debt service capability.
  • Strong operating cash flow of 1.56B provides 2.12x coverage of SG&A expenses 733.70M, showing efficient operational cost management.
  • Robust free cash flow of 1.12B exceeds capital expenditure of 434.30M by 2.58x, indicating strong organic growth funding capability.
  • Short-term investments of 1.43B provide solid 18.23x coverage of other current liabilities 78.30M, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.56B barely covers its investment activities of (446.90M), with a coverage ratio of -3.48, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (446.90M) provide weak support for R&D spending of 544.30M, which is -0.82x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 1.12B represents just -2.73x of debt issuance (411.50M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Long-term investments of 1.57B represent a high 1.01x of fixed assets 1.56B, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 1.56B is outpaced by equity issuance of (899.40M) (-1.73 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 59.62 Bn 29.27 7.67 9.24 Bn
2 TAK Takeda Pharmaceutical Co Ltd 57.33 Bn 79.02 2.00 36.56 Bn
3 HLN Haleon plc 51.85 Bn 33.06 3.83 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.45 Bn 27.98 2.29 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.54 Bn 16.94 6.89 0.00 Bn
6 RGC Regencell Bioscience Holdings Ltd 16.16 Bn -4,510.00 0.00 -
7 ELAN Elanco Animal Health Inc 12.79 Bn 355.14 2.78 4.32 Bn
8 NBIX Neurocrine Biosciences Inc 12.71 Bn 26.56 4.44 0.42 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.71 38.12
EV to Cash from Ops. EV/CFO 12.82 -121.97
EV to Debt EV to Debt 0.00 403.43
EV to EBIT EV/EBIT 11.80 -55.05
EV to EBITDA EV/EBITDA 12.66 -57.64
EV to Free Cash Flow [EV/FCF] EV/FCF 17.78 -65.56
EV to Market Cap EV to Market Cap 0.93 -4.24
EV to Revenue EV/Rev 6.38 -1,205.44
Price to Book Value [P/B] P/B 3.27 43.48
Price to Earnings [P/E] P/E 16.94 -46.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.04
Interest Coverage Int. cover (Qtr) 69.58 -46.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -82.10 -154.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.76 86,151.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.23 31.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 17.10 9.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.62 91.77
EBT Growth (1y) % EBT 1y % (Qtr) 15.89 90.13
EPS Growth (1y) % EPS 1y % (Qtr) 17.15 -12.06
FCF Growth (1y) % FCF 1y % (Qtr) 24.92 -224.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.06 26.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.45 2.12
Current Ratio Curr Ratio (Qtr) 6.40 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.15
Interest Cover Ratio Int Coverage (Qtr) 69.58 -46.13
Times Interest Earned Times Interest Earned (Qtr) 69.58 -46.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 56.70 -59,714.97
EBIT Margin % EBIT Margin % (Qtr) 54.04 -60,539.44
EBT Margin % EBT Margin % (Qtr) 53.27 -64,118.78
Gross Margin % Gross Margin % (Qtr) 88.60 8,658.69
Net Profit Margin % Net Margin % (Qtr) 40.70 -64,120.53