United Therapeutics Corporation Common Stock (UTHR)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $583 million in annual free cash flow (2.3% yield on market cap)
• Solid return on equity of 19.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 21.4 confirms minimal bankruptcy risk and strong solvency
• Healthy net profit margin of 11.4% showing consistent profitability

Concerns

• Trades significantly above Graham Number ($319) with negative 79% margin of safety—limited downside protection

AI Analysis

United Therapeutics Corporation Common Stock is a mid-cap healthcare company valued at $25.0 billion. The business generates $3.2 billion in annual revenue with a 11.4% net margin and $583 million in free cash flow. From a quality standpoint, United shows Altman Z-Score of 21.4 confirms fortress-level solvency and adequate 20% ROE. On valuation, the stock is reasonably priced at 20.6x earnings, with trades above its Graham Number with a negative 79% margin. Growth dynamics show revenue growing at 7.4% and profit growth of 20.9%. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $583 million in annual free cash flow (2.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer