United Story

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UTHR -- USA Stock  

USD 135.07  0.36  0.27%

As many of us are excited about healthcare space, it is fair to sum up United Therapeutics. We will evaluate why recent United Therapeutics price moves suggest a bounce in November. Is the entity current valuation justified? We will cover the stock valuation to give you a better outlook on taking a position in the stock.
Published over three weeks ago
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Is United Therapeutics outlook positive for November 2020?
United Therapeutics currently holds 800 M in liabilities with Debt to Equity (D/E) ratio of 0.26, which may suggest United Therapeutics is not taking enough advantage from borrowing. The entity has a current ratio of 7.28, suggesting that it is liquid enough and is able to pay its financial obligations when due. United Therapeutics has performance score of 5 on a scale of 0 to 100. The entity has a beta of 0.3842, which indicates possible diversification benefits within a given portfolio. Let's try to break down what United's beta means in this case. As returns on the market increase, United Therapeutics returns are expected to increase less than the market. However, during the bear market, the loss on holding United Therapeutics will be expected to be smaller as well. Although it is extremely important to respect United Therapeutics current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting United Therapeutics technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. United Therapeutics right now has a risk of 1.81%. Please validate United Therapeutics maximum drawdown, as well as the relationship between the skewness and day typical price to decide if United Therapeutics will be following its existing price patterns.
We determine the current worth of United Therapeutics using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of United Therapeutics based exclusively on its fundamental and basic technical indicators. By analyzing United Therapeutics's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of United Therapeutics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of United Therapeutics. We calculate exposure to United Therapeutics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to United Therapeutics's related companies.

United Therapeutics Investment Alerts

United investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring United Therapeutics performance across your portfolios.Please check all investment alerts for United

United Therapeutics Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare United value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across United Therapeutics competition to find correlations between indicators driving the intrinsic value of United.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for United Therapeutics, but it might be worth checking our own buy vs. sell analysis

What is driving United Therapeutics Investor Appetite?

The modest gains experienced by current holders of United Therapeutics created some momentum for retail investors as it was traded today as low as 121.48 and as high as 124.5 per share. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.81. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

United profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or United Therapeutics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of United Therapeutics profit margins.
Operating Margin(13.29)
EBITDA Margin(8.45)
Gross Margin86.49
Profit Margin(7.4)

United Therapeutics Net Income Per Employee is decreasing over the last 8 years. Further, United Therapeutics Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.

Some United technical indicators suggest bounce back

Latest value at risk indicator falls down to -2.52. Possible price gain? United Therapeutics has relatively low volatility with skewness of -0.03 and kurtosis of 0.37. However, we advise all investors to independently investigate United Therapeutics to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on United Therapeutics Investment

While other companies under the biotechnology industry are still a bit expensive, United Therapeutics may offer a potential longer-term growth to retail investors. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of United or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to United Therapeutics.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of United Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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