U S Physical Therapy Inc (USPH) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

U S Physical Therapy's EV/EBITDA of 17.3 is above its 5-year median of 16.0.

P/B below the industry

U S Physical Therapy's price-to-book of 3.48 is below the Health Services median of 3.52.

Trading above fair value

The share price of $100.10 is above our fair value estimate of $82.03.

Margin of safety under 20%

The price is 22.0% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 12.2% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -14.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -32.5% over the last twelve months, against a 5-year average of 2.4% a year.

Growing slower than the industry

Revenue grew 10.4% over the last twelve months; the Health Services median is 17.6%.

Guidance unchanged

The latest outlook (full year 2026 adjusted EBITDA, Aug 6, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 18.8% over the last twelve months, against 18.7% a year earlier.

Return on equity under 15%

Return on equity was 6.5% over the last twelve months and averaged 9.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

U S Physical Therapy's return on equity of 6.5% is above the Health Services median of -1.1%.

Earnings grew over 5 years

Net income grew 2.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.6% over the last twelve months, against a 5-year average of 5.7%.

Net margin above the industry

U S Physical Therapy's net margin of 3.6% is above the Health Services median of -13.7%.

High debt

Debt is 57.3% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 7.8% five years ago to 57.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.42 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

U S Physical Therapy paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; U S Physical Therapy yields 1.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.