Time To Buy United Therapeutics Stock?

United Therapeutics’ stock (NASDAQ: UTHR) jumped 33% on September 2nd following the announcement of positive late-stage clinical trial results for Tyvaso (treprostinil) Inhalation Solution in treating idiopathic pulmonary fibrosis (IPF). The study successfully met its primary endpoint, with the treatment demonstrating good tolerability and a safety profile consistent with previous Tyvaso studies.

This development represents a major expansion opportunity for an already successful drug. Tyvaso, which received FDA approval in 2009, generated $1.6 billion in sales last year—a 31% year-over-year increase. If approved for this new IPF indication, the drug could capture an additional $4-5 billion in peak sales.

Despite the stock’s recent 30% surge, we believe UTHR remains an attractive investment at current levels around $400. The company’s strong fundamentals and moderate current valuation support continued upside potential, making it a compelling buy even after the recent rally.

Our positive assessment stems from a comprehensive evaluation of UTHR’s current valuation relative to its recent operating performance and financial condition. Our analysis across key metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—reveals that United Therapeutics maintains very strong operating performance and financial health, providing minimal cause for concern at current price levels.

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How Does United Therapeutics’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, UTHR stock looks slightly cheap compared to the broader market.

• United Therapeutics has a price-to-sales (P/S) ratio of 5.9 vs. a figure of 3.3 for the S&P 500
• Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 17.0 compared to 21.4 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 14.7 vs. the benchmark’s 24.0

How Have United Therapeutics’ Revenues Grown Over Recent Years?

United Therapeutics’ Revenues have seen notable growth over recent years.

• United Therapeutics has seen its top line grow at an average rate of 19.9% over the last 3 years (vs. increase of 5.3% for S&P 500)
• Its revenues have grown 17.6% from $2.6 Bil to $3.1 Bil in the last 12 months (vs. growth of 5.1% for S&P 500)
• Also, its quarterly revenues grew 11.7% to $799 Mil in the most recent quarter from $715 Mil a year ago (vs. 6.1% improvement for S&P 500)

How Profitable Is United Therapeutics?

United Therapeutics’ profit margins are considerably higher than most companies in the Trefis coverage universe.

• United Therapeutics’ Operating Income over the last four quarters was $1.5 Bil, which represents a considerably high Operating Margin of 50.1% (vs. 18.6% for S&P 500)
• United Therapeutics’ Operating Cash Flow (OCF) over this period was $1.4 Bil, pointing to a considerably high OCF Margin of 44.6% (vs. 20.2% for S&P 500)
• For the last four-quarter period, United Therapeutics’ Net Income was $1.2 Bil – indicating a considerably high Net Income Margin of 40.4% (vs. 12.7% for S&P 500)

Does United Therapeutics Look Financially Stable?

United Therapeutics’ balance sheet looks very strong.

• United Therapeutics’ Debt figure was $0.0 at the end of the most recent quarter, while its market capitalization is $18 Bil (as of 9/2/2025). This implies a very strong Debt-to-Equity Ratio of 0.0% (vs. 20.3% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $3.0 Bil of the $7.9 Bil in Total Assets for United Therapeutics.  This yields a very strong Cash-to-Assets Ratio of 38.6% (vs. 7.2% for S&P 500)

How Resilient Is UTHR Stock During A Downturn?

UTHR stock has been more resilient than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on UTHR stock? Our dashboard UTHR Climbed 30% In A Day. How Confident Are You In The Stock? has a detailed analysis of how the stock performed during and after previous market crashes.

Inflation Shock (2022)

• UTHR stock fell 26.8% from a high of $280.43 on 9 December 2022 to $205.19 on 30 May 2023, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 12 June 2024
• Since then, the stock has increased to a high of $410.00 on 10 November 2024 and currently trades at around $400

Covid Pandemic (2020)

• UTHR stock fell 31.2% from a high of $115.35 on 24 February 2020 to $79.39 on 18 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 11 May 2020

Global Financial Crisis (2008)

• UTHR stock fell 57.7% from a high of $38.66 on 5 August 2008 to $16.34 on 20 November 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 23 September 2009

Putting All The Pieces Together: What It Means For UTHR Stock

In summary, United Therapeutics’ performance across the parameters detailed above are as follows:

• Growth: Strong
• Profitability: Very Strong
• Financial Stability: Very Strong
• Downturn Resilience: Strong
• Overall: Strong

Overall, United Therapeutics has demonstrated robust performance across key financial and operational metrics. While the company’s valuation trades at a premium to the benchmark index average, it remains moderate when considering the solid revenue growth and strong profitability profile.

At current levels around $400, UTHR stock trades at 6x trailing revenues—a multiple that aligns with its historical average. Given the positive clinical trial results that could unlock approximately $5 billion in incremental revenue opportunity, an upward revision in this valuation multiple appears justified.

Of course, our assessment could be wrong. Investors may prove unwilling to pay an even higher multiple for UTHR stock, particularly given intensifying competitive pressures. The FDA’s approval of Yutrepia in May 2025 introduces new competition that could impact Tyvaso’s pricing power and market position.

Despite these near-term uncertainties, we believe UTHR represents a solid investment opportunity for investors with a 3-5 year time horizon, even at price levels above $400. The company’s strong operational foundation and significant market expansion potential should drive long-term value creation for patient investors.

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