A Business at a Glance
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UNIVERSAL HEALTH SERVICES INC
UHS
$10.0B
Mkt Cap
$155.75
+2.96%
UNIVERSAL HEALTH SERVICES INC (UHS) has a current P/E ratio of 6.7, compared to its historical median P/E of 13.8. The stock is currently considered Cheap based on its historical valuation range.
UNIVERSAL HEALTH SERVICES INC (UHS) has a 5-year average return on invested capital (ROIC) of 9.3%. This is below average and may indicate limited pricing power.
UNIVERSAL HEALTH SERVICES INC (UHS) has a market capitalization of $9.6B. It is classified as a mid-cap stock.
Yes, UNIVERSAL HEALTH SERVICES INC (UHS) pays a dividend with a trailing twelve-month yield of 0.53%. The company also returns capital through share buybacks, with a buyback yield of 9.46%.
Based on historical P/E analysis, UNIVERSAL HEALTH SERVICES INC (UHS) appears cheap. The current P/E of 6.7 is 51% below its historical median of 13.8. The estimated fair value CAGR (P/E method) is 10.1%.
UNIVERSAL HEALTH SERVICES INC (UHS) operates in the Services-General Medical & Surgical Hospitals, Nec industry, within the Healthcare sector.
Universal Health Services owns and operates acute care hospitals, free-standing emergency departments, and behavioral health facilities across the United States, United Kingdom, and Puerto Rico, generating approximately 57% of consolidated revenues from acute care and 43% from behavioral health services. The company operates 375 inpatient facilities and 168 outpatient facilities as of February 2026, including 29 acute care hospitals in the U.S., 182 inpatient behavioral health facilities domestically, and 161 inpatient behavioral health facilities in the U.K., providing services such as general and specialty surgery, emergency care, oncology, and behavioral health treatment. UHS generates revenue from private insurers including managed care plans, Medicare, Medicaid, and direct patient payments, with behavioral health U.K. operations contributing approximately $1.0 billion in 2025 revenues. The company's business model relies on providing capital resources and centralized management services including purchasing, information systems, finance controls, physician recruitment, and administrative support to its facilities, while maintaining community-based hospital operations with emphasis on service excellence and operational efficiency. UHS faces regulatory requirements including Joint Commission accreditation, Medicare and Medicaid certification, state licensing, and compliance with healthcare fraud and abuse provisions, positioning the company as a diversified healthcare operator with geographic and service-line diversification across inpatient and outpatient settings.
【Balanced growth with operational leverage】 Management expects same-facility volume growth of 2%-3% across both segments in 2026, with pricing increases of 3%-4% in acute care and 2%-3% in behavioral health, supported by continued expense management and moderation in wage pressures particularly in behavioral health. The company anticipates margin expansion as headcount investments made in 2025 moderate and operating cost inflation remains below revenue growth rates, while new facilities including Cedar Hill in Washington D.C. and a de novo hospital in Florida are expected to contribute positively to back-half 2026 results. Management is pursuing strategic outpatient expansion opportunities, including the planned Talkspace acquisition expected to be accretive to earnings within 12 months and reach single-digit EBITDA multiples by Year 3, while maintaining capital allocation flexibility for share repurchases and potential acquisitions. The company faces headwinds from health insurance exchange volume declines of 25%-30% with an estimated $75 million pre-tax impact, California acute psychiatric hospital staffing regulations effective June 2026 with approximately $35 million impact, and ongoing Medicaid supplemental payment program uncertainties, though management remains confident in achieving core earnings growth of approximately 5% for the full year.
| Metric | Target | Period |
|---|---|---|
| Revenue | $18.4 billion–$18.8 billion | FY2026 |
| Adjusted EBITDA net of NCI | $2.64 billion–$2.79 billion | FY2026 |
| Adjusted net income per diluted share | $22.64–$24.52 | FY2026 |
| Capital expenditures | $950 million–$1.1 billion | FY2026 |
| Same-facility volume growth | 2%-3% | FY2026 |
| Acute care pricing increase | 3%-4% | FY2026 |
| Behavioral health pricing increase | 2%-3% | FY2026 |
| Health insurance exchange pre-tax earnings impact | approximately $75 million negative | FY2026 |
| California Acute Psychiatric Hospital Staffing Regulations pre-tax earnings impact | approximately $35 million negative | FY2026 |
| Medicaid supplemental payments net benefit | $1.36 billion |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 17.8B | 17.4B | 15.8B | 14.3B | 13.4B | 12.6B |
| Net Income | 1.5B | 1.5B | 1.1B | 717M | 675M | 990M |
| EPS | $23.71 | $23.10 | $16.82 | $10.23 | $9.14 | $11.82 |
| Free Cash Flow | 913M | 849M | 1.1B | 525M | 262M | 28M |
| ROIC | 12.9% | 13.4% | 10.6% | 6.8% | 6.0% | 9.8% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.63 | 0.65 | 0.68 | 1.23 | 1.22 | 1.05 |
| Dividends/Share | $0.82 | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 |
| Operating Income | 2.0B | 2.0B | 1.7B | 1.2B | 1.0B | 1.4B |
| Operating Margin | 11.5% | 11.5% | 10.6% | 8.2% | 7.5% | 10.8% |
| ROE | 20.4% | 21.4% | 17.8% | 11.9% | 11.2% | 16.0% |
| Shares Outstanding | 62M | 64M | 68M | 70M | 74M | 84M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 8.2B | 9.0B | 9.8B | 10.4B | 10.8B | 11.4B | 11.6B | 12.6B | 13.4B | 14.3B | 15.8B | 17.4B | 17.8B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.8B | 4.2B | 4.6B | 5.0B | 5.3B | 5.6B | 5.6B | 6.2B | 6.8B | 7.1B | 7.5B | 8.1B | 8.2B |
| EBIT | 1.1B | 1.3B | 1.3B | 1.3B | 1.2B | 1.2B | 1.4B | 1.4B | 1.0B | 1.2B | 1.7B | 2.0B | 2.0B |
| Op. Margin | 13.0% | 13.9% | 13.1% | 12.3% | 10.9% | 10.7% | 11.8% | 10.8% | 7.5% | 8.2% | 10.6% | 11.5% | 11.5% |
| Net Income | 545M | 681M | 702M | 752M | 780M | 815M | 944M | 990M | 675M | 717M | 1.1B | 1.5B | 1.5B |
| Net Margin | 6.6% | 7.5% | 7.2% | 7.2% | 7.2% | 7.2% | 8.2% | 7.8% | 5.0% | 5.0% | 7.2% | 8.6% | 8.6% |
| Non-Recurring | 7.8M | 0 | 0 | 0 | 49M | 98M | 0 | 14M | 58M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 10.2% | 11.3% | 10.2% | 9.9% | 9.9% | 10.1% | 11.3% | 9.8% | 6.0% | 6.8% | 10.6% | 13.4% | 12.9% |
| ROE | 15.6% | 17.0% | 16.0% | 15.8% | 15.0% | 15.0% | 16.0% | 16.0% | 11.2% | 11.9% | 17.8% | 21.4% | 20.4% |
| ROA | 6.3% | 7.3% | 7.0% | 7.1% | 7.1% | 7.1% | 7.5% | 7.4% | 5.1% | 5.2% | 8.0% | 9.9% | 9.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.0B | 1.1B | 1.3B | 1.2B | 1.3B | 1.4B | 2.4B | 884M | 996M | 1.3B | 2.1B | 1.9B | 1.9B |
| Free Cash Flow | 645M | 689M | 814M | 690M | 610M | 804M | 1.6B | 28M | 262M | 525M | 1.1B | 849M | 913M |
| Owner Earnings | 629M | 630M | 869M | 743M | 755M | 879M | 1.8B | 277M | 329M | 612M | 1.4B | 1.1B | -5.0B |
| CapEx | 391M | 379M | 520M | 558M | 665M | 634M | 731M | 856M | 734M | 743M | 944M | 1.0B | 993M |
| Maint. CapEx | 376M | 399M | 417M | 448M | 453M | 490M | 510M | 533M | 582M | 568M | 585M | 619M | 6.8B |
| Growth CapEx | 16M | 0 | 103M | 110M | 212M | 144M | 221M | 322M | 152M | 175M | 359M | 396M | 0 |
| D&A | 376M | 399M | 417M | 448M | 453M | 490M | 510M | 533M | 582M | 568M | 585M | 619M | 6.8B |
| CapEx/OCF | 37.8% | 37.2% | 39.0% | 47.1% | 52.2% | 44.1% | 31.0% | 96.8% | 73.7% | 58.6% | 45.7% | 54.4% | 52.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 30M | 40M | 39M | 38M | 37M | 53M | 17M | 66M | 58M | 55M | 53M | 51M | 51M |
| Dividend Yield | 0.3% | 0.3% | 0.3% | 0.4% | 0.3% | 0.5% | 0.2% | 0.6% | 0.7% | 0.6% | 0.4% | 0.4% | 0.5% |
| Share Buybacks | 101M | 210M | 353M | 364M | 397M | 771M | 207M | 1.2B | 833M | 547M | 671M | 968M | 908M |
| Buyback Yield | 0.9% | 1.8% | 3.5% | 3.4% | 3.8% | 6.2% | 1.8% | 11.4% | 8.2% | 5.2% | 5.5% | 6.6% | 9.5% |
| Stock-Based Comp | 31M | 40M | 48M | 57M | 67M | 69M | 66M | 74M | 85M | 88M | 99M | 96M | 97M |
| Debt Repayment | 879M | 68M | 459M | 143M | 830M | 57M | 963M | 3.0B | 89M | 85M | 2.6B | 44M | 44M |
| Balance Sheet | |||||||||||||
| Net Debt | 3.2B | 3.4B | 4.1B | 4.0B | 3.9B | 3.9B | 2.6B | 6.3B | 7.1B | 7.4B | 4.4B | 4.6B | 4.6B |
| Cash & Equiv. | 32M | 61M | 34M | 74M | 105M | 61M | 1.2B | 115M | 103M | 119M | 126M | 138M | 119M |
| Long-Term Debt | 3.2B | 3.4B | 4.0B | 3.5B | 3.9B | 3.9B | 3.5B | 4.1B | 4.7B | 4.8B | 4.5B | 4.0B | 4.0B |
| Debt/Equity | 0.88 | 0.81 | 0.91 | 0.81 | 0.74 | 0.72 | 0.61 | 1.05 | 1.22 | 1.23 | 0.68 | 0.65 | 0.63 |
| Interest Coverage | 8.0 | 11.1 | 10.2 | 8.8 | 7.6 | 7.5 | 12.8 | 16.3 | 7.9 | 5.7 | 9.0 | 12.8 | 13.3 |
| Equity | 3.7B | 4.2B | 4.5B | 5.0B | 5.4B | 5.5B | 6.3B | 6.1B | 5.9B | 6.1B | 6.7B | 7.3B | 7.5B |
| Total Assets | 9.0B | 9.6B | 10.3B | 10.8B | 11.3B | 11.7B | 13.5B | 13.1B | 13.5B | 14.0B | 14.5B | 15.5B | 15.7B |
| Total Liabilities | 5.2B | 5.3B | 5.7B | 5.7B | 5.8B | 6.1B | 7.1B | 6.9B | 7.5B | 7.8B | 7.7B | 8.2B | -221K |
| Intangibles | 98M | 219M | 228M | 220M | 173M | 84M | 83M | 81M | 78M | 77M | 76M | 76M | 76M |
| Retained Earnings | 4.0B | 4.6B | 4.9B | 5.4B | 5.8B | 5.9B | 6.7B | 6.6B | 6.5B | 6.8B | 7.4B | 8.0B | 8.0B |
| Working Capital | 432M | 618M | 364M | -50M | 489M | 353M | 801M | 279M | 623M | 798M | 606M | 168M | 256M |
| Current Assets | 1.6B | 1.7B | 1.7B | 1.8B | 1.9B | 1.9B | 3.3B | 2.3B | 2.5B | 2.8B | 2.8B | 3.4B | 3.5B |
| Current Liabilities | 1.2B | 1.1B | 1.3B | 1.8B | 1.4B | 1.6B | 2.5B | 2.0B | 1.9B | 2.0B | 2.2B | 3.2B | 3.2B |
| Per Share Data | |||||||||||||
| EPS | 5.42 | 6.76 | 7.14 | 7.81 | 8.31 | 9.13 | 10.99 | 11.82 | 9.14 | 10.23 | 16.82 | 23.10 | 23.71 |
| Owner EPS | 6.25 | 6.25 | 8.83 | 7.71 | 8.05 | 9.84 | 20.77 | 3.31 | 4.45 | 8.73 | 20.37 | 17.84 | -81.24 |
| Book Value | 37.13 | 42.21 | 46.08 | 51.80 | 57.44 | 61.67 | 73.55 | 72.74 | 80.19 | 87.67 | 98.18 | 112.89 | 121.05 |
| Cash Flow/Share | 10.30 | 10.61 | 13.56 | 12.95 | 13.59 | 16.12 | 27.48 | 10.56 | 13.49 | 18.08 | 30.44 | 28.93 | 135.24 |
| Dividends/Share | 0.30 | 0.39 | 0.40 | 0.40 | 0.40 | 0.60 | 0.20 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.82 |
| Shares Out. | 100.6M | 100.7M | 98.4M | 96.3M | 93.8M | 89.3M | 85.9M | 83.7M | 73.8M | 70.1M | 67.9M | 64.5M | 61.7M |
| Valuation | |||||||||||||
| P/E Ratio | 19.8 | 16.9 | 14.3 | 14.1 | 13.5 | 15.3 | 12.1 | 10.8 | 15.0 | 14.8 | 10.7 | 9.8 | 6.6 |
| P/FCF | 16.7 | 16.7 | 12.3 | 15.4 | 17.3 | 15.5 | 7.0 | 381.8 | 38.7 | 20.2 | 10.9 | 17.3 | 10.5 |
| EV/EBIT | 13.2 | 11.8 | 11.1 | 11.8 | 12.3 | 13.5 | 9.7 | 10.8 | 14.8 | 13.1 | 9.8 | 10.0 | 7.0 |
| Price/Book | 2.9 | 2.7 | 2.2 | 2.1 | 2.0 | 2.3 | 1.8 | 1.8 | 1.7 | 1.7 | 1.8 | 2.0 | 1.3 |
| Price/Sales | 1.1 | 1.3 | 1.2 | 1.0 | 1.0 | 1.0 | 0.8 | 0.9 | 0.7 | 0.7 | 0.8 | 0.7 | 0.5 |
| FCF Yield | 6.0% | 6.0% | 8.1% | 6.5% | 5.8% | 6.5% | 14.3% | 0.3% | 2.6% | 4.9% | 9.2% | 5.8% | 9.5% |
| Market Cap | 10.8B | 11.5B | 10.0B | 10.6B | 10.5B | 12.4B | 11.4B | 10.7B | 10.1B | 10.6B | 12.2B | 14.7B | 9.6B |
| Avg. Price | 89.99 | 118.92 | 117.58 | 109.76 | 116.90 | 131.59 | 111.31 | 137.58 | 118.80 | 135.41 | 189.26 | 190.11 | 155.75 |
| Year-End Price | 107.22 | 114.30 | 101.98 | 110.28 | 112.40 | 139.27 | 132.86 | 127.86 | 137.29 | 151.28 | 179.54 | 227.42 | 155.75 |
UNIVERSAL HEALTH SERVICES INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
UNIVERSAL HEALTH SERVICES INC trades at 6.7x trailing earnings, compared to its 15-year median P/E of 13.8x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 11.8x vs a median of 15.5x. The company's 5-year average ROIC is 9.3%. Total shareholder yield (dividends + buybacks) is 10.0%. At current prices, the estimated annualized return to fair value is +2.2%.
UNIVERSAL HEALTH SERVICES INC (UHS) reported annual revenue of $17.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
UNIVERSAL HEALTH SERVICES INC (UHS) has a net profit margin of 8.6%. This is a modest margin.
UNIVERSAL HEALTH SERVICES INC (UHS) generated $849 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
UNIVERSAL HEALTH SERVICES INC (UHS) has a debt-to-equity ratio of 0.65. This indicates moderate leverage.
UNIVERSAL HEALTH SERVICES INC (UHS) reported earnings per share (EPS) of $23.10 in its most recent fiscal year.
UNIVERSAL HEALTH SERVICES INC (UHS) has a return on equity (ROE) of 21.4%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 18 years of financial data for UNIVERSAL HEALTH SERVICES INC (UHS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
UNIVERSAL HEALTH SERVICES INC (UHS) has a book value per share of $112.89, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects same-facility volume growth of 2%-3% across both segments in 2026, with pricing increases of 3%-4% in acute care and 2%-3% in behavioral health, supported by continued expense management and moderation in wage pressures particularly in behavioral health. The company anticipates margin expansion as headcount investments made in 2025 moderate and operating cost inflation remains below revenue growth rates, while new facilities including Cedar Hill in Washington D.C. and a de novo hospital in Florida are expected to contribute positively to back-half 2026 results. Management is pursuing strategic outpatient expansion opportunities, including the planned Talkspace acquisition expected to be accretive to earnings within 12 months and reach single-digit EBITDA multiples by Year 3, while maintaining capital allocation flexibility for share repurchases and potential acquisitions. The company faces headwinds from health insurance exchange volume declines of 25%-30% with an estimated $75 million pre-tax impact, California acute psychiatric hospital staffing regulations effective June 2026 with approximately $35 million impact, and ongoing Medicaid supplemental payment program uncertainties, though management remains confident in achieving core earnings growth of approximately 5% for the full year.
Based on recent SEC filings and earnings calls, UNIVERSAL HEALTH SERVICES INC (UHS) has provided the following forward guidance: Revenue: $18.4 billion–$18.8 billion (FY2026); Adjusted EBITDA net of NCI: $2.64 billion–$2.79 billion (FY2026); Adjusted net income per diluted share: $22.64–$24.52 (FY2026); Capital expenditures: $950 million–$1.1 billion (FY2026); Same-facility volume growth: 2%-3% (FY2026), plus 6 additional metrics.
| FY2026 |
| Cedar Hill favorable pre-tax earnings impact | approximately $50 million | FY2026 |
Revenue (FY2026): “we expect revenue to range between $18.4 billion-$18.8 billion, representing growth of 6%-8%”
Adjusted EBITDA net of NCI (FY2026): “We expect adjusted EBITDA net of NCI to range between $2.64 billion-$2.79 billion, representing growth of 2%-8%”
Adjusted net income per diluted share (FY2026): “We expect adjusted net income attributable to UHS per diluted share to range between $22.64 and $24.52, representing growth of 4%-13%”
Capital expenditures (FY2026): “We expect capital expenditures in 2026 to range between $950 million and $1.1 billion”
Same-facility volume growth (FY2026): “Our guidance assumes same facility volume growth to be in a range of 2%-3% for both segments for the full year 2026”
Acute care pricing increase (FY2026): “on the acute side, our guidance implies a 3%-4% pricing increase”
Behavioral health pricing increase (FY2026): “On the behavioral side, we're expecting pricing in the sort of 2%-3% range”
Health insurance exchange pre-tax earnings impact (FY2026): “We assume an adverse pre-tax earnings impact of approximately $75 million related to reductions in the health insurance exchanges”