📊 UHS Key Takeaways
Is Universal Health Services Inc. (UHS) a Good Investment?
UHS demonstrates solid revenue growth of 9.7% YoY and generates healthy operating cash flow of $401.6M, indicating operational resilience in the hospital sector. However, net income growth stalled at 0% YoY despite revenue gains, signaling margin compression from rising operating costs, which combined with poor capital returns (ROE 4.7%, ROA 2.2%) suggests limited earnings growth potential. The company maintains adequate financial stability with manageable debt and strong interest coverage, but insufficient profitability expansion to warrant a buy recommendation.
Universal Health Services shows solid core fundamentals with strong revenue growth, double-digit operating margins, and high returns on equity and assets. Financial health appears sound given manageable leverage and strong interest coverage, though flat net income, modest free cash flow margin, and thin liquidity suggest the business still faces execution and capital intensity constraints.
Universal Health Services Inc. Key Strengths (UHS)
- Strong revenue growth of 9.7% YoY demonstrates market demand and pricing power in healthcare services
- Solid free cash flow generation of $184.5M provides flexibility for debt service and capital allocation
- Strong interest coverage ratio of 13.5x and moderate leverage (Debt/Equity 0.63x) indicate financial stability and low default risk
- Operating margin of 11.2% is healthy for hospital operations segment
- Revenue growth of 9.7% with 11.5% operating margin indicates resilient operating performance
- ROE of 20.5% and ROA of 9.6% reflect efficient use of capital and assets
- Debt load appears manageable with 0.65x debt-to-equity and 12.8x interest coverage
UHS Stock Risks: Universal Health Services Inc. Investment Risks
- Net income completely flat (0% growth) despite 9.7% revenue growth indicates significant margin compression from rising labor and operational costs
- Extremely low returns on capital (ROE 4.7%, ROA 2.2%) signal poor efficiency in deploying equity and assets
- Tight liquidity with current ratio of only 1.08x and low cash balance of $119M relative to $15.7B asset base
- Significant debt burden of $4.7B; while manageable, limits financial flexibility in downturns or for strategic investments
- Net income was flat year over year despite higher revenue, which may signal margin pressure or rising costs
- Free cash flow margin of 4.9% is modest for the size of the business and reflects heavy capital intensity
- Current and quick ratios of 1.05x leave limited liquidity cushion if operating conditions weaken
Key Metrics to Watch
- Operating margin trends - critical to determine if cost pressures are structural or temporary
- Free cash flow sustainability - monitor if CapEx requirements increase or operating cash generation weakens
- Debt-to-Assets ratio and cash balance changes - assess financial flexibility for operational needs
- Net income and operating margin trend
- Free cash flow generation relative to capital expenditures
Universal Health Services Inc. (UHS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.1% FCF margin may limit capital allocation flexibility.
UHS Profit Margin, ROE & Profitability Analysis
UHS vs Healthcare Sector: How Universal Health Services Inc. Compares
How Universal Health Services Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Universal Health Services Inc. Stock Overvalued? UHS Valuation Analysis 2026
Based on fundamental analysis, Universal Health Services Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Universal Health Services Inc. Balance Sheet: UHS Debt, Cash & Liquidity
UHS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Universal Health Services Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.23 reflects profitable operations.
UHS Revenue Growth, EPS Growth & YoY Performance
UHS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.1B | $316.7M | $4.80 |
| Q3 2025 | $4.0B | $258.7M | $3.80 |
| Q2 2025 | $3.9B | $289.2M | $4.26 |
| Q1 2025 | $3.8B | $261.8M | $3.82 |
| Q3 2024 | $3.6B | $167.0M | $2.40 |
| Q2 2024 | $3.5B | $171.3M | $2.42 |
| Q1 2024 | $3.5B | $163.1M | $2.28 |
| Q3 2023 | $3.3B | $167.0M | $2.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Universal Health Services Inc. Dividends, Buybacks & Capital Allocation
UHS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Universal Health Services Inc. (CIK: 0000352915)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UHS
What is the AI rating for UHS?
Universal Health Services Inc. (UHS) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UHS's key strengths?
Claude: Strong revenue growth of 9.7% YoY demonstrates market demand and pricing power in healthcare services. Solid free cash flow generation of $184.5M provides flexibility for debt service and capital allocation. ChatGPT: Revenue growth of 9.7% with 11.5% operating margin indicates resilient operating performance. ROE of 20.5% and ROA of 9.6% reflect efficient use of capital and assets.
What are the risks of investing in UHS?
Claude: Net income completely flat (0% growth) despite 9.7% revenue growth indicates significant margin compression from rising labor and operational costs. Extremely low returns on capital (ROE 4.7%, ROA 2.2%) signal poor efficiency in deploying equity and assets. ChatGPT: Net income was flat year over year despite higher revenue, which may signal margin pressure or rising costs. Free cash flow margin of 4.9% is modest for the size of the business and reflects heavy capital intensity.
What is UHS's revenue and growth?
Universal Health Services Inc. reported revenue of $4.5B.
Does UHS pay dividends?
Universal Health Services Inc. pays dividends, with $13.0M distributed to shareholders in the trailing twelve months.
Where can I find UHS SEC filings?
Official SEC filings for Universal Health Services Inc. (CIK: 0000352915) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UHS's EPS?
Universal Health Services Inc. has a diluted EPS of $5.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UHS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Universal Health Services Inc. has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is UHS stock overvalued or undervalued?
Valuation metrics for UHS: ROE of 4.7% (sector avg: 15%), net margin of 7.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is UHS's AI grade for 2026?
Our dual AI analysis gives Universal Health Services Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UHS's free cash flow?
Universal Health Services Inc.'s operating cash flow is $401.6M, with capital expenditures of $217.2M. FCF margin is 4.1%.
How does UHS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 7.8% (avg: 12%), ROE 4.7% (avg: 15%), current ratio 1.08 (avg: 2).