Stock In Focus – TAM Stock Screener – United Therapeutics Corporation (NASDAQ: UTHR)

Johnny HopkinsStock Screener1 Comment

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is United Therapeutics Corporation (NASDAQ: UTHR).

United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company’s therapies for pulmonary arterial hypertension largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Nearly all of its sales are generated within the United States. United also markets a pediatric oncology drug, but its focus largely remains in pulmonary hypertension.

A quick look at United Therapeutics’ share price history (below) over the past twelve months shows that the price is up 41%. Here’s why the company is undervalued.

Summary

Market Cap: $5.01 Billion

Enterprise Value: $4.25 Billion

Operating Earnings*

Operating Earnings: $554 Million

Acquirer’s Multiple

Acquirer’s Multiple: 7.66

Free Cash Flow (TTM)

Free Cash Flow: $597 Million

FCF/EV Yield:

FCF/EV Yield: 14%

Other Indicators

Piotroski F-Score: 7

Altman Z-Score: 5.11

Beneish M-Score: -2.62

For more articles like this, check out our recent articles here.

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One Comment on “Stock In Focus – TAM Stock Screener – United Therapeutics Corporation (NASDAQ: UTHR)”

  1. Hi Tobias,
    In the past, I’ve purchased stocks that currently show to be undervalued (e.g. EVC, MCK and others) just to see the stocks plummet over 40% after they already showed undervalued in the screener. After looking further into it, there were some fundamental issues on the stock which I didn’t catch at the time. In the case of EVC, it was because every 4 years the world cup increases sales. About 6 months later the parent company took all the gains.

    I know I should have done more research but that was a lesson learned.
    Thanks for your work,

    Americo

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