UTHR

Based on a multi-faceted review, United Therapeutics (UTHR) presents a compelling investment case with a favorable risk-reward profile.

Technically, the stock exhibits strong positive momentum over the intermediate term despite a recent modest pullback, positioning it in the upper quadrant of its yearly range. Fundamentally, it showcases exceptional profitability with net margins exceeding 40%, a debt-free balance sheet, and superior liquidity, underpinning a very low-risk financial profile. While its valuation reflects moderate growth expectations, its below-market volatility offers defensive characteristics.

Therefore, UTHR is a buy. Its combination of robust financial health, high profitability, and reasonable valuation provides a solid foundation for investment. The stock's technical strength and defensive market beta further support a positive outlook for both growth and capital preservation.

*This analysis is for informational purposes only and does not constitute investment advice.*

RockFlow Model Forecast: Three Scenarios for 2026

Of course. Here is a 12-month outlook for United Therapeutics (UTHR):

Catalysts: The primary drivers are the continued blockbuster performance of Tyvaso DPI and the potential for major pipeline advancements, particularly in the xenotransplantation program with partner Revivicor. Successful clinical milestones here could significantly revalue the company.

Risks: Key risks include patent expirations for key products beginning in 2028, which creates a long-term overhang, and the inherent clinical and regulatory uncertainties associated with the groundbreaking xenotransplantation trials.

Outlook: UTHR is exceptionally well-positioned with its debt-free balance sheet and profitability to navigate both its near-term execution and long-term pipeline bets. While a specific analyst target is unavailable, the outlook is positive, with the stock likely to trend higher, driven by execution on current products and pipeline news, targeting a price range in the high $400s to low $500s.

Wall Street Consensus

Most Wall Street analysts are optimistic about UTHR's 12-month outlook, with consensus target around $475.73, indicating expected upside potential.

Overall, UTHR has investment potential but also faces challenges. Here are key factors to weigh before investing.

Of course, here is the technical analysis of UTHR's price performance.

Overall Assessment

UTHR has demonstrated significant strength over the past three months, decisively outperforming the broader market, though it has experienced a modest pullback over the most recent month.

Short-term Performance

While the stock has retreated 2.38% over the past month, this near-term weakness is overshadowed by a strong 7.07% gain over the last three months. This quarterly performance is particularly notable as it represents a 3.7% outperformance relative to the market, indicating the stock possesses strong positive momentum on an intermediate-term basis.

Current Position

With a current price of $476.86, UTHR is trading approximately 78% above its 52-week low but still about 8% below its 52-week high of $519.99. This positions the stock in the upper quadrant of its yearly range, suggesting it is neither severely overbought nor oversold but is testing resistance levels near its peak.

Of course. Here is a fundamental analysis of United Therapeutics Corporation (UTHR) based on the provided data.

**1. Revenue & Profitability**

United Therapeutics demonstrates exceptional profitability, driven by a remarkably high gross profit margin of approximately 87.4%. This indicates strong pricing power and efficient control over the cost of goods sold. The company converts this gross profit into a robust net income, with a net profit margin of 42.4% for the quarter, showcasing highly effective management of operating expenses. Revenue remained stable sequentially at around $800 million, suggesting a mature, reliable revenue stream for its key products.

**2. Financial Health**

The company's financial health is exceptionally strong, characterized by a complete absence of debt, as indicated by debt ratios of zero. This eliminates interest rate risk and provides significant financial flexibility. Liquidity is superior, with a high current ratio of 6.4 and a substantial cash ratio of 2.1, meaning it holds more than twice the cash needed to cover its current liabilities. This positions UTHR with a very conservative and low-risk balance sheet.

**3. Operational Efficiency**

Operational efficiency is solid, with a Return on Equity (ROE) of 5.1%, indicating decent profitability relative to shareholder equity. The asset turnover ratio is relatively low at 0.11, which is typical for capital-intensive biotechnology or pharmaceutical companies with significant intangible assets. The high cash conversion cycle (negative due to lengthy payables terms) suggests the company efficiently uses supplier financing, though the low inventory turnover may point to deliberate stockpiling of key drug components.

Valuation Level: United Therapeutics appears moderately valued based on traditional metrics, with a trailing PE of 16.5 and forward PE of 13.6 suggesting reasonable earnings-based valuation. However, the elevated PS ratio of 6.7 and particularly high EV/EBITDA of 37.2 indicate the market is pricing in significant growth expectations, while the PEG ratio slightly above 1.0 confirms a modest growth premium.

Peer Comparison: Without specific industry average data for comparison, it's challenging to contextualize these ratios against sector norms. The analysis would benefit from comparable pharmaceutical or biotechnology industry benchmarks to determine whether these multiples represent a premium or discount relative to peers with similar growth profiles and business models.

Volatility Risk

UTH's beta of 0.841 indicates it is less volatile than the broader market, theoretically offering some downside protection in declining markets. However, this lower beta is contrasted by a significant maximum drawdown of -27.86% over the past year, revealing that the stock has still experienced substantial peak-to-trough declines. This disconnect suggests that while its day-to-day price movements may be muted, the stock is susceptible to pronounced selling pressures during specific adverse events or market corrections.

Other Risks

The absence of reported short interest is a neutral factor; it implies a lack of concerted bearish sentiment from short sellers, but it does not inherently eliminate fundamental or sector-specific risks. A primary concern lies in liquidity risk, as the stock's lower trading volume could lead to wider bid-ask spreads and potential challenges in executing large orders without impacting the share price.