# Universal Health Services (UHS.US)

Canonical: https://gigainvestors.com/s/UHS

Analysis as of: 2026-10-01T19:03:56.976Z. Financial observations: FY2008–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: $187.36 per share; close as of 2026-10-15.

Estimated value: low $132.88 per share, central $189.83 per share, high $222.98 per share. Buy at or below the central value $189.83 per share. Valuation as of 2026-10-01T19:03:56.976Z; scenarios are not confidence intervals.

Expected annual return: 10.1% at the stated quote. About 10.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.3% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.12×

- FY2018: 0.11×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.11×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.11×

- FY2025: 0.11×

### moat: pass

- ROIC, median of available years: 16.8%

- ROIC, second-lowest year: 12.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.7%

- ROIC including acquisitions, ten-year median: 7.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.2%

- FY2017: 17.0%

- FY2018: 16.7%

- FY2019: 16.0%

- FY2020: 19.1%

- FY2021: 15.8%

- FY2022: 10.6%

- FY2023: 12.0%

- FY2024: 17.3%

- FY2025: 18.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.72×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.6B

- Net income, five-year total: $5.0B

- Return on incremental invested capital: 16.4%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 7.8 pp

- Working capital / revenue, final three-year average: 12.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.05×

- FY2022: 0.87×

- FY2023: 0.88×

- FY2024: 0.91×

- FY2025: 0.94×

### management: pass

- $1 retained earnings test: 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.0% vs 17.3%

- Ordinary dilution, 10-year annual growth: -4.4%

- Ordinary dilution, 5-year annual growth: -5.5%

- Market cap gain: $3.6B

- Cumulative retained earnings: $3.1B

- Diluted shares, 10-year annual growth: -4.4%

- Diluted shares, 5-year annual growth: -5.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.3%

- Per-share value change: $9.68

- Per-share value, starting three-year median: $7.14

- Per-share value, ending three-year median: $16.82

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 5.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.0B

- Cumulative net income, 10 years: $9.0B

- ROIC, first three-year median: 17.0%

- ROIC, last three-year median: 17.3%

### accounting: pass

- Sloan accruals: -2.4%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.56×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.1%

- FY2017: -4.6%

- FY2018: -4.4%

- FY2019: -5.3%

- FY2020: -10.5%

- FY2021: 0.8%

- FY2022: -2.4%

- FY2023: -3.9%

- FY2024: -6.4%

- FY2025: -2.4%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 28% since Nov 2025 · "Universal Health Services Stock Sinks as CFO Says Post-Covid Care Recovery Has Slowed" (finance.yahoo.com, Jun 2025) · sales +9.7%

Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02.

Price needs cash profits to grow 5.5% a year for ten years

- 2025-06-09: Universal Health Services Stock Sinks as CFO Says Post-Covid Care Recovery Has Slowed ([finance.yahoo.com](https://finance.yahoo.com/news/universal-health-services-stock-sinks-180355495.html))

- 2025-07-30: UHS posts softer-than-expected volumes for second consecutive quarter ([finance.yahoo.com](https://finance.yahoo.com/news/uhs-posts-softer-expected-volumes-093502132.html))

- 2025-10-27: Universal Health Services beats quarterly profit estimates on higher medical care demand ([finance.yahoo.com](https://finance.yahoo.com/news/universal-health-services-beats-quarterly-214503613.html))

- 2025-11-06: Universal Health Services (UHS): Assessing Valuation After Upbeat Q3 Results and Upgraded 2025 Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/universal-health-services-uhs-assessing-192010153.html))

- 2026-07-28: UHS Beats Q2 Earnings and Revenue Estimates Despite Cost Pressures ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/uhs-beats-q2-earnings-revenue-133600753.html))

### Sales · FY2024–2025

sales +9.7%; source https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm; observed 2026-02-25.

- FY2016: $9.8B 

- FY2017: $10B 

- FY2018: $11B 

- FY2019: $11B 

- FY2020: $12B 

- FY2021: $13B 

- FY2022: $13B 

- FY2023: $14B 

- FY2024: $16B 

- FY2025: $17B 

### Gross margin · FY2025

gross margin 90.4%; source https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm; observed 2026-02-25.

- FY2022: 89.0% 

- FY2023: 89.3% 

- FY2024: 90.0% 

- FY2025: 90.4% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Annual sales are USD 17.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm (filed 2026-02-25); FY2025: revenue 17364829000; grossProfit 15705820000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); UHS.US: Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities in the United States. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric, pharmacy, and/or behavioral health services. It also provides commercial health insurance services; capital resources; and various management services, including central purchasing, information services, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. Universal Health Services, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

### Why customers stay

Margins ranged from 89.3% to 90.4% during 2023–25; it earns 16.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 89.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 90%.

- Source: https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 90.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.17168268029711273],[2017,0.16958545571846778],[2018,0.1666824821898255],[2019,0.1603779515331479],[2020,0.1912662359917239],[2021,0.15840793278900425],[2022,0.10601003718728437],[2023,0.12045069794403812],[2024,0.17267282679893245],[2025,0.18377326176525674]]; median 0.16813396895414665. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 28.5% of cash earnings on expansion; earns 16.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 329911115.9406861; upkeep 825305884.0593139; owner earnings 245602115.9406861. Growth capex / owner earnings = 1.3432747298494814.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 161666000; upkeep 447765000; owner earnings 695565000. Growth capex / owner earnings = 0.23242400063257926.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 160410698.98936367; upkeep 651258301.0106363; owner earnings 514910698.9893637. Growth capex / owner earnings = 0.3115311049162667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 173126000; upkeep 490392000; owner earnings 745423000. Growth capex / owner earnings = 0.23225202334781728.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 82957787.06302845; upkeep 651251212.9369715; owner earnings 737357787.0630285. Growth capex / owner earnings = 0.11250682981657767.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 322446000; upkeep 533213000; owner earnings 917904000. Growth capex / owner earnings = 0.35128510170998273.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 152140000; upkeep 581861000; owner earnings 590231000. Growth capex / owner earnings = 0.25776348582165287.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 175014000; upkeep 568041000; owner earnings 630075000. Growth capex / owner earnings = 0.27776693250803475.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 358979000; upkeep 584831000; owner earnings 1042748000. Growth capex / owner earnings = 0.34426246801720073.

- Source: https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm (filed 2026-02-25); FY2025: growth capex 396409000; upkeep 618743000; owner earnings 1393108000. Growth capex / owner earnings = 0.2845500851333852.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Incremental return on capital 0.16382082099654674, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,38875000],[2017,38211000],[2018,37342000],[2019,53003000],[2020,17344000],[2021,65896000],[2022,58449000],[2023,55480000],[2024,53346000],[2025,51267000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 967951000 USD.

### Are managers owners

Insiders own 5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); UHS.US SharesStats.PercentInsiders = 4.978 percentage points; cache date 2026-10-02.

### What could break it

"Our performance depends on our ability to recruit and retain quality physicians." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm (filed 2026-02-25); Our performance depends on our ability to recruit and retain quality physicians.

### What the price says

The price assumes cash profits grow 5.5% yearly over ten years; actual growth was 12.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.06534982743530057. Price 175.07; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 6.553061751444972 → FY2025 21.61130588563805. Closing-price date 2026-10-01.

## Monthly share-price history (USD per share)

- 2016-10: $120.71 per share

- 2016-11: $123.02 per share

- 2016-12: $106.38 per share

- 2017-01: $112.63 per share

- 2017-02: $125.60 per share

- 2017-03: $124.45 per share

- 2017-04: $120.76 per share

- 2017-05: $113.66 per share

- 2017-06: $122.08 per share

- 2017-07: $110.83 per share

- 2017-08: $108.13 per share

- 2017-09: $110.94 per share

- 2017-10: $102.70 per share

- 2017-11: $108.35 per share

- 2017-12: $113.35 per share

- 2018-01: $121.50 per share

- 2018-02: $114.20 per share

- 2018-03: $118.41 per share

- 2018-04: $114.20 per share

- 2018-05: $114.98 per share

- 2018-06: $111.44 per share

- 2018-07: $122.10 per share

- 2018-08: $130.16 per share

- 2018-09: $127.84 per share

- 2018-10: $121.56 per share

- 2018-11: $137.99 per share

- 2018-12: $116.56 per share

- 2019-01: $132.53 per share

- 2019-02: $138.83 per share

- 2019-03: $133.77 per share

- 2019-04: $126.87 per share

- 2019-05: $119.55 per share

- 2019-06: $130.39 per share

- 2019-07: $150.86 per share

- 2019-08: $144.58 per share

- 2019-09: $148.75 per share

- 2019-10: $137.46 per share

- 2019-11: $139.49 per share

- 2019-12: $143.46 per share

- 2020-01: $137.11 per share

- 2020-02: $123.74 per share

- 2020-03: $99.08 per share

- 2020-04: $105.69 per share

- 2020-05: $105.45 per share

- 2020-06: $92.89 per share

- 2020-07: $109.90 per share

- 2020-08: $110.35 per share

- 2020-09: $107.02 per share

- 2020-10: $109.55 per share

- 2020-11: $130.58 per share

- 2020-12: $137.50 per share

- 2021-01: $124.68 per share

- 2021-02: $125.33 per share

- 2021-03: $133.39 per share

- 2021-04: $148.41 per share

- 2021-05: $159.63 per share

- 2021-06: $146.43 per share

- 2021-07: $160.41 per share

- 2021-08: $155.76 per share

- 2021-09: $138.37 per share

- 2021-10: $124.10 per share

- 2021-11: $118.73 per share

- 2021-12: $129.66 per share

- 2022-01: $130.06 per share

- 2022-02: $143.93 per share

- 2022-03: $144.95 per share

- 2022-04: $122.53 per share

- 2022-05: $124.61 per share

- 2022-06: $100.71 per share

- 2022-07: $112.47 per share

- 2022-08: $97.84 per share

- 2022-09: $88.18 per share

- 2022-10: $115.87 per share

- 2022-11: $130.85 per share

- 2022-12: $140.89 per share

- 2023-01: $148.21 per share

- 2023-02: $133.57 per share

- 2023-03: $127.10 per share

- 2023-04: $150.35 per share

- 2023-05: $132.13 per share

- 2023-06: $157.77 per share

- 2023-07: $138.96 per share

- 2023-08: $134.70 per share

- 2023-09: $125.73 per share

- 2023-10: $125.89 per share

- 2023-11: $137.48 per share

- 2023-12: $152.44 per share

- 2024-01: $158.81 per share

- 2024-02: $167.06 per share

- 2024-03: $182.46 per share

- 2024-04: $170.43 per share

- 2024-05: $189.80 per share

- 2024-06: $184.93 per share

- 2024-07: $213.76 per share

- 2024-08: $237.97 per share

- 2024-09: $229.01 per share

- 2024-10: $204.31 per share

- 2024-11: $205.00 per share

- 2024-12: $179.42 per share

- 2025-01: $188.56 per share

- 2025-02: $175.25 per share

- 2025-03: $187.90 per share

- 2025-04: $177.07 per share

- 2025-05: $190.35 per share

- 2025-06: $181.15 per share

- 2025-07: $166.45 per share

- 2025-08: $181.58 per share

- 2025-09: $204.44 per share

- 2025-10: $217.01 per share

- 2025-11: $243.63 per share

- 2025-12: $218.02 per share

- 2026-01: $201.26 per share

- 2026-02: $206.10 per share

- 2026-03: $178.97 per share

- 2026-04: $168.27 per share

- 2026-05: $146.11 per share

- 2026-06: $148.69 per share

- 2026-07: $168.44 per share

- 2026-08: $170.33 per share

- 2026-09: $174.26 per share

## Annual estimated value (USD per share)

- FY2016: low $57.13 per share, central $65.01 per share, high $75.50 per share

- FY2017: low $71.87 per share, central $81.78 per share, high $94.97 per share

- FY2018: low $78.77 per share, central $112.53 per share, high $132.18 per share

- FY2019: low $100.75 per share, central $143.92 per share, high $169.06 per share

- FY2020: low $123.17 per share, central $163.69 per share, high $189.87 per share

- FY2022: low $103.99 per share, central $141.95 per share, high $166.39 per share

- FY2023: low $116.75 per share, central $159.18 per share, high $186.57 per share

- FY2024: low $126.16 per share, central $180.23 per share, high $211.71 per share

- FY2025: low $132.88 per share, central $189.83 per share, high $222.98 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/352915/000119312526071676/uhs-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.