Universal Health Services, Inc. ($UHS) Cautious Buy or Hold to $92 Confident Investor Rating: Fair

Company name Universal Health Services, Inc.
Stock ticker UHS
Live stock price [stckqut]UHS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $100.07
Target stock price (averages with growth) $96.75
Target stock price (averages with no growth) $53.07
Target stock price (manual assumptions) $108.33

The following company description is from Google Finance: http://www.google.com/finance?q=uhs

Universal Health Services, Inc., owns and operates through its subsidiaries, acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. As of February 28, 2013, it owned and/or operated 23 acute care hospitals and 197 behavioral health centers located in 37 states, Washington, D.C., Puerto Rico and the United States, Virgin Islands. As part of its ambulatory treatment centers division, it manages and/or own outright or in partnerships with physicians, five surgical hospitals and surgery and radiation oncology centers located in four states. In April 2014, it completed the acquisition of the Psychiatric Institute of Washington (PIW), a 124-bed behavioral health care facility and outpatient treatment center located in the District of Columbia. It has added a total of 17 facilities throughout the United Kingdom including 15 inpatient behavioral health hospitals and two nursing homes with a total of 743 beds.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Universal Health Services, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Universal Health Services, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $98.79
  • Growth: 0.12
  • Current EPS (TTM): $4.95
  • P/E: 20
  • Future EPS Calc: $8.72
  • Future Stock Price Calc: $174.47
  • Target stock price: $108.33

I hope that this makes you a better investor. [/s2If]

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