United Therapeutics trades at $367.51 and has moved in lockstep with the market. Its shares have returned 13.5% over the last six months while the S&P 500 has gained 12.2%.
Is now the time to buy UTHR? Find out in our full research report, it’s free.
Founded in 1996 with a focus on treating rare diseases, United Therapeutics (NASDAQ:UTHR) is a biotechnology company focused on developing and commercializing innovative therapies for rare diseases, particularly pulmonary arterial hypertension (PAH).
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, United Therapeutics’s 12.7% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
United Therapeutics has shown terrific cash profitability, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company’s free cash flow margin was among the best in the healthcare sector, averaging an eye-popping 35.3% over the last five years.
ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Fortunately, United Therapeutics’s ROIC has increased significantly over the last few years. This is a great sign when paired with its already strong returns. It could suggest its competitive advantage or profitable growth opportunities are expanding.
There are definitely things to like about United Therapeutics, but at $367.51 per share (or 13.1× forward price-to-earnings), is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market – and we’re zeroing in on the stocks that could benefit immensely.
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