United Therapeutics: Is UTHR Stock Still A Buy At $400?

Core Viewpoint - United Therapeutics Corporation's stock surged 33% following positive late-stage clinical trial results for Tyvaso in idiopathic pulmonary fibrosis, indicating strong market confidence in the drug's potential [2][3] Growth - Tyvaso, approved by the FDA in 2009, generated $1.6 billion in sales last year, reflecting a 31% year-over-year increase [3] - The company has seen its revenues grow at an average rate of 19.9% over the last three years, compared to a 5.3% increase for the S&P 500 [6] Profitability - United Therapeutics exhibits significantly higher profit margins than most companies in the Trefis coverage universe, with an operating margin of 50.1% over the last four quarters [8][15] - The company's net income margin stands at 40.4%, compared to 12.7% for the S&P 500 [15] Financial Stability - United Therapeutics has a very strong balance sheet, with a debt figure of $0.0 at the end of the most recent quarter, resulting in a debt-to-equity ratio of 0.0% [9][15] - Cash and cash equivalents amount to $3.0 billion, making up 38.6% of total assets of $7.9 billion [15] Downturn Resilience - UTHR stock has shown more resilience than the S&P 500 during recent downturns, recovering fully from significant declines in previous market crises [10][16] Valuation - At current levels near $400, UTHR stock trades at 6x trailing revenues, which aligns with its historical average [12] - The stock appears slightly cheap relative to the broader market based on price-to-sales and price-to-earnings ratios [7][11]