What Could Make Universal Health’s Valuation Increase?
Universal Health’s operating margin is expected to increase to 18.4% and 19% in 4Q15 and 1Q16, respectively. Its valuation multiple should increase with improved operational efficiency.
For the last six years, Universal Health has been operating at quite a stable occupancy rate. Its occupancy rate is among the highest in the sector.
Behavioral Health and Acute Care Hospitals are nearly even in the total revenue for Universal Health Services (UHS). Behavioral Health is recession-resistant and is growing organically and inorganically.
Analysts expect Universal Health’s net margin to be 7.6% and 8% for 4Q15 and 1Q16, respectively. That would be a margin expansion of 80 basis points when quarterly performance is compared.
According to a financial news release, Universal Health Services (UHS) will report earnings for 4Q15 and full year 2015 on February 25, 2016, after the market closes.
Boston Scientific has outperformed peers like Medtronic and St. Jude Medical in terms of price-to-earnings multiple.
The consensus rating for Boston Scientific is now “buy” from 78.6% of all analysts, or from 22 firms. The rating was “hold” from 21.4%, or from six firms.
Boston Scientific expects its fiscal 2016 revenues to be in the range of $7.9 billion–$8.1 billion, which would represent YoY growth of 6%–8%.
Boston Scientific reported ~$2 billion in total revenues in 4Q15. Of that, ~$0.5 billion was generated by CRM (Cardiac Rhythm Management) segment sales.
Boston Scientific beat the earnings consensus for EPS in 4Q15 and managed to meet its quarterly EPS guidance but failed to meet consensus revenue estimates.
Boston Scientific reported its 4Q15 earnings on February 4 and registered adjusted EPS of $0.26 in 4Q15, which represents 18% YoY growth.
After the release of its 4Q15 and 2015 earnings results, Cigna’s price-to-earnings ratio fell from 13.2x on February 4, 2016, to 12.3x on February 8, 2016.
In Bloomberg’s survey of 21 brokerage companies recorded on February 9, 2016, about 62.5% brokers rated Cigna as a “buy,” while 37.5% rated it as a “hold.”
In 4Q15, Cigna’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin fell year-over-year (or YoY) by 0.7% to reach 9.7%.
In 2015, Cigna’s (CI) global supplemental benefits business earned revenues of about $3.1 billion, year-over-year (or YoY) growth of about 4.8%.
In 2015, Cigna’s global healthcare enrolments, which involve the company’s commercial and government-sponsored enrolments, reached about 15.0 million.
Cigna (CI) posted its 4Q15 and 2015 earnings on February 4, 2016. The company reported diluted operating earnings per share of about $1.87 in 4Q15.
Pfizer’s valuation multiple has also followed the industry’s overall trend over the last five years.
Analysts estimate Pfizer’s earnings per share to be $0.56 on sales of $13.6 billion in 1Q16. Analysts estimate that EPS will increase to $0.60 in 2Q16.
Pfizer reported a rise of 7% in revenues in 4Q15. Its net profit margin improved to 18.5% in 4Q15, and its gross margin fell to 78.8% in 4Q15.