UHS - Embedded Expectations Analysis - 2019 08 28
Universal Health Services, Inc. (UHS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 17.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management is concerned about revenue, net cash growth, and DSH payments.Specifically, management is confident they have been unable to accurately estimate the impact of their upcoming settlement, and may lack confidence in their ability to sustain recent revenue growth in adjusted admissions. Furthermore, they may be concerned about the sustainability of revenue growth in their behavioral health division, and may appear concerned about the sustainability of recent net cash generation levels. Finally, they may be concerned about their ability to meet their DSH guidance and about the impact of low unemployment rates on their hiring process.
Universal Health Services owns and operates, through its subsidiaries, acute care hospitals and outpatient facilities and behavioral health care facilities. The company owns and/or operates inpatient facilities and outpatient and other facilities located in several states including, Washington, D.C., the United Kingdom, and Puerto Rico. Services provided by the company's hospitals include general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. The company's reportable operating segments consist of acute care hospital services and behavioral health care services.
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