Stock In Focus – TAM Stock Screener – United Therapeutics Corporation (NASDAQ: UTHR)
Thursday, August 13, 2020 · Johnny Hopkins
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