U.S. Physical Therapy, Inc. (USPH)
Valuation Overview•Is U.S. Physical Therapy, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
USPH struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (12.2% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 12.5%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $164.3M | +16.3% | +12.2% | +13.0% | +9.0% | |
| EBITDA | $20.5M | — | +12.9% | — | — | |
| Net Income | $5.0M | -43.1% | -18.9% | — | -3.8% | |
| EPS (Diluted) | $-0.12 | -22.8% | -24.8% | -19.1% | -2.2% | |
| Free Cash Flow | -$1.4M | -7.2% | +6.6% | -8.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 22.0% | 19.6% | 20.5% | 21.6% |
| Operating Margin | 12.5% | 9.4% | 10.6% | 12.0% |
| Net Margin | 1.5% | 2.8% | 3.8% | 4.5% |
| FCF Margin | 9.6% | 9.9% | 10.5% | 12.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.55 | $0.46 | -16.4% | ||
| Q1'26 | $0.67 | $0.67 | +0.0% | ||
| Q4'25 | $0.67 | $0.66 | -1.5% | ||
| Q3'25 | $0.71 | $0.81 | +14.1% | ||
| Q2'25 | $0.46 | $0.48 | +4.3% | ||
| Q1'25 | $0.69 | $0.65 | -5.8% | ||
| Q4'24 | $0.68 | $0.69 | +1.5% | ||
| Q3'24 | $0.81 | $0.73 | -9.9% |
Total return is -11.7% (1Y), lagging the benchmark by -36.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -18.6% | -27.9% | — |
| 1Y | -11.7% | -36.7% | +2.5% |
| 3YCAGR | -15.4% | -35.2% | +4.7% |
| 5YCAGR | -8.3% | -21.6% | +7.8% |
| 10YCAGR | +2.8% | -10.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about U.S. Physical Therapy, Inc. (USPH) valuation, health, and returns.
Based on peer relative multiples, U.S. Physical Therapy, Inc. appears Cheap versus peers compared to industry peers.
U.S. Physical Therapy, Inc. has multiple valuation anchors: Peer Relative Fair Value: $93.91 | Wall Street Analyst Target: $96.00 (implying +51.6% upside). A convergence of these signals offers higher conviction.
U.S. Physical Therapy, Inc. displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of 2.1 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 5.6%.
U.S. Physical Therapy, Inc. pays a 2.8% dividend yield, covered by a 182% payout ratio with 15 years of growth, supplemented by a 0.6% buyback yield.
U.S. Physical Therapy, Inc.'s current growth trajectory is Accelerating. The company achieved +16.3% 1Y revenue growth and -22.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +12.2%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 42% of recent quarters with a -3-quarter streak. The consensus price target represents a +51.6% change from current levels.
Investment risks for U.S. Physical Therapy, Inc. include: -36.7% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.89x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.