UHS

Healthcare

Universal Health Services, Inc. · Medical - Care Facilities · $10B

UQS Score — Balanced Preset
56.0
Good

Universal Health Services, Inc. scores 56.0/100 using the Balanced preset.

UQS vs Healthcare Sector
UHS
56.0
Sector avg
32.4
Quality
Good
Moat
Weak
Growth
Neutral
Risk
Neutral
Valuation
Attractive

What is Universal Health Services, Inc.?

Universal Health Services operates one of the largest networks of acute care and behavioral health facilities in the United States. Headquartered in King of Prussia, Pennsylvania, the company serves patients across dozens of states, Washington D.C., the United Kingdom, and Puerto Rico.

UHS generates revenue by owning and operating hospitals and behavioral health facilities, billing patients, insurers, and government programs for clinical services. Its two primary segments — Acute Care Hospital Services and Behavioral Health Care Services — cover everything from emergency and surgical care to inpatient psychiatric treatment. The company also provides management services to affiliated facilities, including purchasing, finance, and physician recruitment, creating an additional revenue stream beyond direct patient care.

Universal Health Services was founded in 1981 and is headquartered in King of Prussia, Pennsylvania.

  • Acute care hospitals offering surgery, oncology, and emergency services
  • Inpatient and outpatient behavioral health facilities
  • Obstetrics, pediatric, and specialty care programs
  • Commercial health insurance services
  • Centralized management services for affiliated facilities

Is UHS a Good Stock to Buy?

UQS Score rates UHS as Good overall, reflecting a balanced but nuanced profile across its five analytical pillars.

The Quality pillar comes in at a Good rating, suggesting the business generates reasonably dependable financial results relative to healthcare sector peers. Valuation is rated Attractive, which means the stock appears reasonably priced — or potentially underpriced — compared to its fundamental profile, a meaningful signal for value-oriented investors.

The Moat pillar registers as Weak, indicating that UHS faces meaningful competitive pressure and may lack durable pricing power compared to higher-rated healthcare peers. Growth and Risk both land at Neutral, suggesting neither a strong tailwind nor an immediate red flag.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does UHS pay dividends?

Yes — Universal Health Services, Inc. pays a dividend.

UHS pays a regular dividend, which is relatively uncommon among hospital operators of its scale. The dividend reflects the company's ability to generate consistent cash flow from its large facility network. Income-focused investors may find this appealing, though the payout is modest relative to pure income plays — the primary investment case rests on operational performance rather than yield.

When does UHS report earnings?

Universal Health Services reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

Results across recent quarters have reflected the ongoing dynamics of hospital utilization, labor costs, and behavioral health demand — factors that tend to drive variability in healthcare operator earnings. The Neutral Growth and Risk pillar ratings suggest performance has been steady rather than exceptional.

For the most recent quarter's results and guidance, visit Universal Health Services' investor relations page directly.

UHS Price History

+14.8% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Universal Health Services, Inc.?

$
Today it would be worth
$12,652
That's a +26.5% total return, or +4.8% annualized.

Based on Universal Health Services, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

UHS Long-term Outlook

The fundamental outlook for UHS is shaped by its Neutral Growth rating, pointing to modest expansion expectations rather than a high-velocity growth story. Behavioral health demand remains a structural tailwind given rising awareness and utilization trends across the US. However, the Weak Moat rating introduces uncertainty around the company's ability to expand margins or defend market share over a longer horizon. The Attractive Valuation label suggests the market may already be pricing in some of these headwinds, leaving room for upside if operational execution improves.

Growth drivers

  • Structural demand growth in behavioral health services across the US
  • Potential for capacity expansion through facility acquisitions or new openings
  • Management services revenue providing diversification beyond direct patient care

Key risks

  • Weak competitive moat leaves UHS exposed to pricing pressure from peers and insurers
  • Labor cost inflation remains a persistent challenge for large hospital operators
  • Regulatory and reimbursement changes from government payers could compress margins

UHS vs Peers

UHS operates in a competitive healthcare services landscape alongside a range of facility-based and diversified healthcare companies.

ENSGUHS scores higher
The Ensign Group, Inc.

Ensign focuses primarily on post-acute and long-term care facilities, targeting a different patient population than UHS's acute and behavioral health mix.

SOLVUHS scores higher
Solventum Corporation

Solventum operates as a healthcare technology and solutions company, competing in adjacent areas of the healthcare value chain rather than direct facility operations.

EHCSimilar UQS
Encompass Health Corporation

Encompass Health specializes in inpatient rehabilitation hospitals and home health services, making it a more focused operator compared to UHS's broader acute and behavioral portfolio.

Frequently Asked Questions

What does Universal Health Services do?

Universal Health Services owns and operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico. The company earns revenue by providing clinical services — from emergency care to inpatient psychiatric treatment — and billing insurers, government programs, and patients. It also offers management services to affiliated facilities.

Does UHS pay dividends?

Yes, UHS pays a regular dividend. This is relatively uncommon among large hospital operators and reflects the company's ability to generate consistent cash flow from its facility network. Investors seeking income should review the current dividend details on UHS's investor relations page for the latest payout information.

When does UHS report earnings?

Universal Health Services reports earnings on a quarterly cadence, as is standard for US-listed companies. For the exact schedule and most recent results, check the investor relations section of the UHS corporate website.

Is UHS a good stock to buy?

UHS earns a Good overall UQS Score, with an Attractive Valuation rating and Good Quality pillar. However, the Weak Moat rating signals limited competitive insulation, and Growth is Neutral. Whether UHS fits your portfolio depends on your investment goals — the full pillar breakdown is available to UQS Pro members.

Is UHS overvalued?

Based on the UQS Valuation pillar, UHS is rated Attractive, suggesting the stock is not overvalued relative to its fundamental profile. This may indicate the market has priced in some of the company's operational challenges, potentially offering a reasonable entry point for patient investors.

How does UHS compare to its competitors?

UHS is a broader operator than peers like Encompass Health, which focuses on rehabilitation, or Ensign Group, which targets post-acute care. UHS's scale across both acute and behavioral health gives it diversification, though its Weak Moat rating suggests it does not hold a dominant competitive position relative to the wider healthcare sector.

What is UHS's market cap bracket?

Universal Health Services is classified as a large-cap company, placing it among the more established and widely followed names in the healthcare services sector. Large-cap status generally implies greater liquidity and institutional coverage compared to smaller hospital operators.

Who founded Universal Health Services?

Universal Health Services was founded in 1978 by Alan B. Miller, who built the company into one of the largest hospital management organizations in the United States. The company is headquartered in King of Prussia, Pennsylvania.

Is UHS a long-term quality investment?

As a long-term quality indicator, UHS's Good UQS Score reflects reasonable but not exceptional fundamentals. The Weak Moat rating is a consideration for long-horizon investors, as durable competitive advantages tend to compound value over time. The Attractive Valuation may partially offset this concern for those with a patient outlook.

What is the main competitive advantage of Universal Health Services?

UHS's primary advantage lies in its scale — operating hundreds of facilities across multiple states and segments creates purchasing power and operational leverage. However, the UQS Moat pillar rates this advantage as Weak, suggesting that scale alone has not translated into a strongly defensible market position relative to sector peers.

What sector does UHS belong to?

UHS operates in the Healthcare sector, specifically within healthcare services and hospital management. It is one of the larger publicly traded hospital operators in the United States, with exposure to both acute medical care and the growing behavioral health segment.

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Pro Analysis

UHS — Score History

4550556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 10 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202656.068.732.042.950.797.8+1.1
May 7, 202654.966.932.042.847.096.80.0
May 3, 202654.966.932.042.847.096.9+0.1
May 2, 202654.866.932.042.847.096.2+0.1
May 1, 202654.766.932.042.647.096.1-0.1
Apr 19, 202654.866.932.042.947.096.50.0
Apr 18, 202654.866.932.042.947.096.0+0.1
Apr 12, 202654.766.932.042.947.095.8-0.1
Apr 5, 202654.866.932.042.947.096.20.0
Apr 2, 202654.866.932.042.947.096.0

UHS — Pillar Breakdown

Quality

68.7/100 (25%)

Universal Health Services, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

42.9/100 (20%)

Universal Health Services, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

50.7/100 (15%)

Universal Health Services, Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

97.8/100 (15%)

Universal Health Services, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

32/100 (25%)

Universal Health Services, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for UHS.

Score Composition

Quality
68.7×25%17.2
Growth
42.9×20%8.6
Risk
50.7×15%7.6
Valuation
97.8×15%14.7
Moat
32.0×25%8.0
Total
56.0Good

Financial Data

More Stock Analysis

How is the UHS UQS Score Calculated?

The UQS (Unified Quality Score) for Universal Health Services, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Universal Health Services, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Universal Health Services, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.