📊 UHS Key Takeaways
Is Universal Health Services Inc. (UHS) a Good Investment?
UHS demonstrates solid operational fundamentals with double-digit operating margins (11.5%) and strong profitability metrics (20.5% ROE, 9.6% ROA), supported by consistent revenue growth of 9.7% YoY. The company generates healthy operating and free cash flow (FCF: $849.2M) with adequate interest coverage (12.8x), though tight liquidity (1.05x current ratio) and moderate leverage (0.65x debt/equity) warrant monitoring.
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.
Why Buy Universal Health Services Inc. Stock? UHS Key Strengths
- Strong profitability with 11.5% operating margin and 8.6% net margin in healthcare services
- Excellent return metrics (20.5% ROE, 9.6% ROA) indicate efficient capital utilization
- Consistent revenue growth of 9.7% YoY with 37.3% diluted EPS growth
- Robust interest coverage ratio of 12.8x demonstrates comfortable debt servicing capacity
- Positive free cash flow generation of $849.2M provides financial flexibility
- 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
- Tight liquidity position with current ratio of 1.05x limits operational flexibility for unexpected challenges
- Modest free cash flow margin of 4.9% relative to revenue suggests limited margin for error
- Significant long-term debt of $4.8B requires sustained operational performance and cash generation
- Healthcare sector exposure to regulatory, reimbursement, and labor cost pressures
- Limited cash reserves ($137.8M) relative to total assets suggests reliance on operational cash flow
- 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 sustainability amid labor cost inflation and reimbursement changes
- Free cash flow growth trajectory and capital allocation decisions
- Current ratio and working capital management to ensure adequate liquidity buffers
- Debt/EBITDA ratio and leverage reduction progress
- Revenue growth rate and same-hospital utilization trends
- 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 4.9% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $3.3B | $164.1M | $2.20 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UHS's key strengths?
Claude: Strong profitability with 11.5% operating margin and 8.6% net margin in healthcare services. Excellent return metrics (20.5% ROE, 9.6% ROA) indicate efficient capital utilization. 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: Tight liquidity position with current ratio of 1.05x limits operational flexibility for unexpected challenges. Modest free cash flow margin of 4.9% relative to revenue suggests limited margin for error. 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 $17.4B.
Does UHS pay dividends?
Universal Health Services Inc. pays dividends, with $51.3M 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 $23.10.
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 rating reflects both perspectives for balanced insights.
Is UHS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Universal Health Services Inc. has a BUY rating with 78% 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 20.5% (sector avg: 15%), net margin of 8.6% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy UHS stock in 2026?
Our dual AI analysis gives Universal Health Services Inc. a combined BUY rating 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 $1.9B, with capital expenditures of $1.0B. FCF margin is 4.9%.
How does UHS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.6% (avg: 12%), ROE 20.5% (avg: 15%), current ratio 1.05 (avg: 2).