Universal Health Services, Inc. (UHS)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Universal Health Services as a hospital operator, not a glamorous business. It owns acute-care hospitals and outpatient and behavioral health facilities, employing 102,000 people. The filed record shows steady growth: revenue rose from $14.3B in FY2023 to $15.8B in FY2024 to $17.4B in FY2025; net income rose from $717.8M to $1.1B to $1.5B; diluted EPS rose from $10.23 to $16.82 to $23.10. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.6B, net income $358.4M, and diluted EPS $5.98, against $4.3B, $353.2M, and $5.43 in fiscal Q2 2025. That is real progress. The moat is modest and local—hospital networks have scale, but they are not toll bridges; still, 102,000 employees and two care segments give it operating presence. Financial health is decent: FairStock shows return on equity of 20.95%, debt-to-equity of 0.69, free cash flow of $810.7M, and a free cash flow yield of 7.6%. The Piotroski score is 8/9, though the Altman Z-score of 1.93 warns the balance sheet is not fortress-like. Valuation is the attraction. At the 2026-10-13 close of $179.01, FairStock calculates a P/E of 7.30, P/B of 1.40, PEG of 0.72, EV/EBITDA of 5.62, and a Graham Number of $265.16, implying a 32.49% margin of safety. The Lynch category is STALWART, based on 9.5% five-year profit growth. This is a cheap, steadily growing operator, but I want the debt and margin trends to stay healthy.

In plain English: Universal Health Services runs hospitals and outpatient and behavioral health care facilities in the United States. The business looks strong: revenue and profit have grown, and the latest quarter showed more revenue and profit than the same quarter a year earlier. At the 2026-10-13 price of $179.01, the shares look cheap compared with the company's profits and asset value, though not without risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer