Subscription: Value Stocks
UTHR is a highly profitable and inexpensive company that got stuck in a flat consolidation
United Therapeutics develops and manufactures drugs for pulmonary arterial hypertension (PAH), a rare and progressive disease. The firm is a market leader in two of the three primary drugs classes used to treat PAH. The main market is the United States
I really like UTHR for its stellar fundamentals (look below). Technical wise it topped in wave ( 3 ) up at 190.29 in April 2015. Since then it has been in a corrective correction structure called a triangle. We need it to complete the wave ( D ) up followed by the smallest wave ( E ) down. That would complete that large multi-yer triangle and start a new rally to a new all time high.
Financial Strength
The company has great profitability ratios and has a very low debt. And it is cheap. Currently it is traded at 8.4 x Price-to-Free-Cash-Flow. However, as I noted above, the price got stuck in a large flat consolidation pattern called triangle.
Operating Margin
50%
Net
Margin
36%
Return on Capital
115%
Price-to-Free-Cash-Flow
8.4
Debt-to-Equity
x 0.1
Dividend
Yield
0%