USPH Intrinsic Value – US Physical Therapy Reports 7.7% Increase in Revenue for Q2 FY 2023, Totaling USD 151.5 Million
August 13, 2023
☀️Earnings Overview
On August 9 2023, U.S. PHYSICAL THERAPY ($NYSE:USPH) announced that their total revenue for the second quarter of fiscal year 2023, which ended on June 30 2023, was USD 151.5 million, a 7.7% increase compared to the same quarter of the prior year. However, their reported net income was down 29.4%, coming in at USD 8.0 million.
Analysis – USPH Intrinsic Value
GoodWhale has analyzed the fundamentals of U.S. PHYSICAL THERAPY and come to the conclusion that the fair value of its share is around $105.0. This value was determined using our proprietary Valuation Line, which takes into account various factors such as cash flow, financials, management, and business risk to come to an estimation of the true worth of the company. However, at present, U.S. PHYSICAL THERAPY stock is being traded at $109.0, which is a fair price but still slightly overvalued by 3.9%. This means that investors have to pay a slightly higher price than what is currently justified in order to acquire the stock. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for USPH. More…
| Total Revenues | Net Income | Net Margin |
| 580.78 | 25.51 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for USPH. More…
| Operations | Investing | Financing |
| 69.81 | -77.39 | 119.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for USPH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 999.58 | 344.07 | 32.59 |
Key Ratios Snapshot
Some of the financial key ratios for USPH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 7.9% | 10.9% |
| FCF Margin | ROE | ROA |
| 10.6% | 9.8% | 4.0% |
Peers
The US Physical Therapy Inc is in competition with Extendicare Inc, Optimax Holdings Bhd, Ensign Group Inc. All these companies are in the business of providing physical therapy and related services. US Physical Therapy Inc is the largest of these companies and has the most experience in the industry. However, all the companies are striving to provide the best quality services to their customers.
– Extendicare Inc ($TSX:EXE)
Extendicare Inc. is a Canadian operator of nursing homes and retirement homes. The company has a market cap of 615.07M as of 2022 and a return on equity of 19.21%. Extendicare operates in Canada and the United States, with a total of over 500 facilities. The company’s services include long-term care, post-acute care, and assisted living.
– Optimax Holdings Bhd ($KLSE:0222)
Optimax Holdings Bhd is a Malaysian company that is involved in the provision of optical products and services. The company has a market capitalization of 405 million as of 2022 and a return on equity of 29.84%. The company’s main business activities include the manufacture and sale of optical products, the provision of optical services, and the trading of optical products.
– Ensign Group Inc ($NASDAQ:ENSG)
Ensign Group Inc is a leading provider of healthcare services in the United States. The company has a market cap of 4.77B as of 2022 and a Return on Equity of 19.3%. Ensign Group Inc provides a wide range of healthcare services including skilled nursing, assisted living, home health, hospice, and rehabilitation services. The company has a strong focus on quality and customer satisfaction. Ensign Group Inc is committed to providing the highest quality of care to its patients and families.
Summary
U.S. PHYSICAL THERAPY released its financial results for the second quarter of fiscal 2023 on August 9th. Total revenue was reported at USD 151.5 million, a 7.7% increase year-over-year, yet net income was down 29.4%. These results caused the stock price to drop that same day.
Taking into consideration the revenue growth, the decrease in net income can be seen as a potential opportunity for investors to buy in at a lower price. Although the company may be facing some short-term challenges, the increase in revenue indicates there is potential for future profits.
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