Universal Health Services, Inc. (UHS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Universal Health Services, Inc.

Updated on October 19, 2026 · accounts published on July 27, 2026

A profitable business with steady margins and fast-growing earnings

Universal Health Services trades at a P/E of 7.2× over the last 12 months, 50 % below its ten-year median of 14.5× and 76 % below its sector.

• Is Universal Health Services expensive or cheap? Its P/E of 7.2× is 50 % below its ten-year median, and it has traded lower only 3 % of the time in the last decade.
• How is the business doing? EPS grew 37 % over the last 12 months on revenue up 10 %, with the operating margin steady at 11.4 % against an 11.2 % average.
• How strong is the balance sheet? Net debt of $86.92 per share equals 50 % of the share price (fiscal 2025), at a manageable 2.0× EBITDA.
• What to expect from the next earnings? Results are due October 27, 2026; analysts expect EPS of $5.20, below the $5.98 reported last quarter.
• Does it invest enough in R&D and turn profit into cash? Free cash flow was 57 % of net income in fiscal 2025, short of the 90 % that healthcare treats as healthy.

Is Universal Health Services expensive or cheap?

Over the last 12 months Universal Health Services trades at a P/E of 7.2×. Its ten-year median is 14.5×, and over the decade the P/E has ranged from 5.9× to 23.0×. It has traded at a lower multiple only 3 % of the time in the last decade. The sector median P/E is 30.4× across 246 companies, which puts the stock 76 % below its peers. Other measures say the same: EV/EBITDA of 5.4×, a free cash flow yield of 8.8 % and an earnings yield of 15.8 %. The market is wary: the shares are down 21 % over 12 months and sit 29 % below their 52-week high of $244.18.

How is the business doing?

Revenue rose 10 % and EPS 37 % over the last 12 months, so profit is growing much faster than sales. Margins explain little of the jump. The operating margin of 11.4 % is in line with the 11.2 % average for fiscal 2014-2025 and the 11.5 % of fiscal 2025. Returns are solid, with ROE of 20.7 % and ROIC of 11.7 % over the last 12 months. That ROIC is 5.4 points above the sector median of 6.3 %. The weak spot is consistency: ROIC topped 10 % in only 2 of the last 10 fiscal years, and its low was 6.5 % in 2022.

How strong is the balance sheet?

Debt is the figure that matters most here. In fiscal 2025 net debt was $86.92 per share, equal to 50 % of the current price. At 2.0× EBITDA it is still below the 2.5× that healthcare treats as healthy. Over the last 12 months debt to equity is 0.70 and the current ratio is 1.12. The risk scores are reassuring: an Altman Z of 3.2, in the safe zone, and a Piotroski score of 8 out of 9. The dividend yield is only 0.5 %, with a payout of 3 % of fiscal 2025 earnings, though the dividend per share has risen for 5 straight fiscal years.

What to expect from the next earnings?

Universal Health Services has beaten EPS estimates in 7 of the last 8 quarters. The latest results, published July 27, 2026, showed EPS of $5.98 against $5.94 expected, a 0.7 % beat. For the results due October 27, 2026, the consensus is $5.20. Full-year expectations are stable: over the last 30 days the 2026 EPS consensus moved from $22.53 to $22.56 among 12 analysts, and the revenue estimate barely changed. Of 44 analysts, 17 rate the stock a buy, 25 a hold and 2 a sell, a cautious stance for a single-digit P/E.

Does it invest enough in R&D and turn profit into cash?

Healthcare investors watch R&D and cash conversion because expiring patents wipe out revenue, so the pipeline and the cash that funds it shape the future. Universal Health Services spent 0.0 % of revenue on R&D in fiscal 2025, far from the 15 % threshold. Free cash flow covered 57 % of net income, against the 90 % considered healthy. The other sector tests pass: EPS grew 16.1 % a year over fiscal 2020-2025, double the 8 % bar, the gross margin was 90.4 % and net debt was 2.0× EBITDA. ROIC of 11.7 % sits just below the 12 % line. Reported profit is not yet fully backed by cash.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.