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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 63.2GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.6%
Sector: 8.5%
Dividend Analysis audit
HIGH YIELD
7.53%
Trailing Yield
$7.53
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
250%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) receives a "Hold" rating with a composite score of 52.1/100, ranked #706 out of 4446 stocks. Key factor scores: Quality 63/100, Value 58/100, Momentum 45/100. This is quantitative analysis only — not investment advice.
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNIVERSAL HEALTH REALTY INCOME TRUST Do?
Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human service related facilities including acute care hospitals, rehabilitation hospitals, sub-acute care facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments in seventy-one properties located in twenty states, including two that are currently under construction. UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) is classified as a small-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Alan B. Miller, headquartered in Baltimore, Pennsylvania. With a market capitalization of $564M, UHT is one of the notable companies in the Financials sector.
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) Stock Rating — Hold (April 2026)
As of April 2026, UNIVERSAL HEALTH REALTY INCOME TRUST receives a Hold rating with a composite score of 52.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.UHT ranks #706 out of 4,446 stocks in our coverage universe. Within the Financials sector, UNIVERSAL HEALTH REALTY INCOME TRUST ranks #211 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
UHT Stock Price and 52-Week Range
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) currently trades at $42.99. The stock gained $0.09 (0.2%) in the most recent trading session. The 52-week high for UHT is $44.70, which means the stock is currently trading -3.8% from its annual peak. The 52-week low is $35.26, putting the stock 21.9% above its annual trough. Recent trading volume was 46K shares, suggesting relatively thin trading activity.
Is UHT Overvalued or Undervalued? — Valuation Analysis
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 33.19x, compared to the Financials sector average of 14.88x — a premium of 123%. The price-to-book ratio stands at 3.84x, versus the sector average of 1.22x. The price-to-sales ratio is 5.89x, compared to 0.90x for the average Financials stock. On an enterprise value basis, UHT trades at 19.98x EV/EBITDA, versus 3.26x for the sector.
Overall, UHT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
UNIVERSAL HEALTH REALTY INCOME TRUST Profitability — ROE, Margins, and Quality Score
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) earns a quality factor score of 63/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.6%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 3.1% versus the sector average of 1.2%.
On a margin basis, UNIVERSAL HEALTH REALTY INCOME TRUST reports gross margins of 0.0%. The operating margin is 35.2% (sector: 21.8%). Net profit margin stands at 17.8%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
UHT Debt, Balance Sheet, and Financial Health
UNIVERSAL HEALTH REALTY INCOME TRUST has a debt-to-equity ratio of 246.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.37x, suggesting adequate working capital coverage. Total debt on the balance sheet is $375M. Cash and equivalents stand at $7M.
UHT has a beta of 0.26, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for UNIVERSAL HEALTH REALTY INCOME TRUST is 88/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
UNIVERSAL HEALTH REALTY INCOME TRUST Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNIVERSAL HEALTH REALTY INCOME TRUST reported revenue of $99M and earnings per share (EPS) of $1.27. Net income for the quarter was $18M. Gross margin was 0.0%. Operating income came in at $26M.
In FY 2025, UNIVERSAL HEALTH REALTY INCOME TRUST reported revenue of $99M and earnings per share (EPS) of $1.27. Net income for the quarter was $18M. Operating income came in at $35M.
In Q4 2025, UNIVERSAL HEALTH REALTY INCOME TRUST reported revenue of $24M. Net income for the quarter was $4M.
In Q3 2025, UNIVERSAL HEALTH REALTY INCOME TRUST reported revenue of $25M and earnings per share (EPS) of $0.29. Net income for the quarter was $4M. Operating income came in at $8M.
Over the past 8 quarters, UNIVERSAL HEALTH REALTY INCOME TRUST has demonstrated a growth trajectory, with revenue expanding from $99M to $99M. Investors analyzing UHT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UHT Dividend Yield and Income Analysis
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) currently pays a dividend yield of 7.5%. At this yield, a $10,000 investment in UHT stock would generate approximately $$753.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning UHT offers above-average income for its sector. With a net margin of 17.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
UHT Momentum and Technical Analysis Profile
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) has a momentum factor score of 45/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UHT vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing UHT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UHT vs S&P 500 (SPY) comparison to assess how UNIVERSAL HEALTH REALTY INCOME TRUST stacks up against the broader market across all factor dimensions.
UHT Next Earnings Date
No upcoming earnings date has been announced for UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UHT? — Investment Thesis Summary
UNIVERSAL HEALTH REALTY INCOME TRUST presents a balanced picture with arguments on both sides. The quality score of 63/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 88/100) reduces downside risk.
In summary, UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) earns a Hold rating with a composite score of 52.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on UHT stock.
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Institutional Research Dossier
UNIVERSAL HEALTH REALTY INCOME TRUST (UHT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Universal Health Realty Income Trust (UHT) receives a Hold rating, driven by a balanced assessment of its stability and value against weaker growth prospects and capital allocation. While UHT exhibits strong profitability and stability metrics, its relatively high valuation compared to the sector and negative revenue growth raise concerns about future performance. The REIT's focus on healthcare properties provides a degree of defensiveness, but its limited growth potential and high debt levels warrant a cautious approach.
The primary takeaway is that UHT presents a mixed bag for investors. Its stability and current income are attractive in a volatile market, but its valuation and growth prospects are less compelling. Investors should carefully weigh these factors against their risk tolerance and investment objectives before considering UHT.
Business Strategy & Overview
Universal Health Realty Income Trust (UHT) operates as a real estate investment trust (REIT) specializing in healthcare-related properties. The company's core business model revolves around acquiring, developing, and leasing healthcare facilities, including acute care hospitals, rehabilitation hospitals, medical office buildings, and other specialized healthcare centers. UHT generates revenue primarily through rental income from its portfolio of properties, strategically located across twenty states. The company's investment strategy focuses on partnering with established healthcare operators, often under long-term lease agreements, which provides a stable and predictable revenue stream.
UHT's strategic positioning within the healthcare REIT sector is characterized by a focus on diversification across property types and geographic locations. This diversification aims to mitigate risks associated with regional economic downturns or changes in healthcare regulations affecting specific facility types. The company also seeks to enhance its portfolio through selective acquisitions and development projects, targeting properties with strong growth potential and attractive yields. However, the limited number of properties (71) compared to larger healthcare REITs suggests a more concentrated portfolio, potentially increasing idiosyncratic risk.
The healthcare REIT industry is influenced by several macroeconomic factors, including demographic trends, healthcare spending patterns, and regulatory changes. The aging population and increasing demand for healthcare services create a favorable long-term outlook for the industry. However, regulatory uncertainties, such as changes in reimbursement policies and healthcare reform initiatives, can pose challenges. Competition within the healthcare REIT sector is intense, with numerous players vying for attractive investment opportunities. UHT's smaller size and limited capital resources compared to larger REITs may constrain its ability to compete for larger acquisitions and development projects.
UHT's growth strategy appears to be more focused on maintaining occupancy and rental rates within its existing portfolio rather than aggressively pursuing new acquisitions. This conservative approach may limit its growth potential but also reduces its exposure to risks associated with rapid expansion. The company's relationship with Universal Health Services (UHS), a large hospital operator, provides a potential source of deal flow and strategic partnerships. However, the extent to which UHT can leverage this relationship for future growth remains uncertain.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.1%
Sector: 9.4%
-101% VS SCTR
Economic Moat Analysis
Universal Health Realty Income Trust's economic moat is best characterized as Narrow. While the company benefits from certain advantages inherent in the REIT structure and the healthcare sector, these are not substantial enough to create a wide and sustainable competitive advantage. The primary source of UHT's narrow moat stems from its specialized knowledge and relationships within the healthcare real estate market.
The healthcare sector, in general, exhibits some degree of defensiveness due to the essential nature of healthcare services. Demand for healthcare is relatively inelastic, meaning it is less sensitive to economic downturns. This provides a degree of stability to UHT's rental income, as healthcare operators are less likely to default on lease payments even during challenging economic conditions. However, this defensiveness is not unique to UHT and is shared by other healthcare REITs.
UHT's relationships with healthcare operators, particularly Universal Health Services (UHS), provide a potential advantage in sourcing deals and securing long-term leases. These relationships can lead to preferential access to investment opportunities and a better understanding of the specific needs of healthcare tenants. However, the extent to which UHT can consistently leverage these relationships to generate superior returns is uncertain. Furthermore, these relationships are not exclusive and can be replicated by other REITs with established networks in the healthcare industry.
Switching costs for healthcare tenants are relatively low. While relocating a healthcare facility can be disruptive and costly, tenants are not necessarily locked into long-term leases with UHT. They can potentially move to competing properties if they find better terms or more suitable facilities. This limits UHT's ability to raise rental rates significantly or maintain high occupancy rates in the face of competition. The lack of significant switching costs weakens UHT's competitive position.
UHT does not possess significant cost advantages or efficient scale. The REIT structure itself provides some cost advantages through tax benefits, but these are available to all REITs. UHT's smaller size compared to larger healthcare REITs may actually put it at a cost disadvantage, as it may not be able to achieve the same economies of scale in property management and financing. Overall, UHT's narrow moat is primarily based on its specialized knowledge and relationships in the healthcare real estate market, but it lacks the scale, switching costs, or cost advantages to create a wide and sustainable competitive advantage.
Financial Health & Profitability
Universal Health Realty Income Trust's financial health presents a mixed picture. The company exhibits strong profitability metrics, but its revenue growth is stagnant, and its debt levels are relatively high. The Quality score of 64/100 suggests a solid level of profitability and returns, but the Investment score of 33/100 raises concerns about capital allocation and growth prospects.
UHT's revenue has been essentially flat, with a -0.1% revenue growth rate compared to a sector average of 9.3%. This lack of revenue growth is a significant concern, as it limits the company's ability to generate higher earnings and dividends. The Net Income of $17.61M translates to a Net Margin of 17.8%, which is in line with the sector average. However, without revenue growth, it will be difficult for UHT to improve its profitability further.
The company's balance sheet is characterized by a high level of debt. Total Debt of $374.77M significantly outweighs its Total Cash of $6.69M, resulting in a Debt-to-Equity ratio of 246.00, which is more than double the sector average of 115.00. This high leverage increases UHT's financial risk, as it makes the company more vulnerable to interest rate increases and economic downturns. The Current Ratio of 1.37 indicates that UHT has sufficient liquid assets to cover its short-term liabilities, but the high debt level remains a concern.
UHT's ROE of 11.6% is higher than the sector average of 8.5%, indicating that the company is generating a good return on equity. However, this ROE is likely boosted by the company's high leverage. The EBITDA of $63.62M suggests that UHT is generating a healthy level of cash flow from its operations. However, the Free Cash Flow of $23.25M is relatively low compared to its EBITDA, indicating that the company is spending a significant portion of its cash flow on capital expenditures or debt service.
Looking at the quarterly financial history, UHT's revenue and net income have been relatively stable over the past few quarters. However, there is no clear trend of improvement, and the company's operating margin has fluctuated. The consistent operating margins around 35% suggest efficient operations, but the lack of revenue growth remains a key challenge. The fluctuating Free Cash Flow from quarter to quarter makes it difficult to predict the company's future cash flow generation.
Valuation Assessment
Universal Health Realty Income Trust's valuation presents a mixed picture. While some metrics suggest a reasonable valuation, others indicate that the stock may be overvalued relative to its growth prospects and the sector. The Value score of 59/100 suggests a fair valuation, but a deeper analysis of specific valuation metrics is warranted.
UHT's P/E ratio of 31.9x is significantly higher than the sector average of 15.5x. This suggests that investors are paying a premium for UHT's earnings compared to other financial stocks. The high P/E ratio could be justified if UHT were growing rapidly, but its negative revenue growth rate does not support this premium valuation. The high P/E ratio raises concerns about potential overvaluation.
The EV/EBITDA ratio of 3.7x is slightly above the sector average of 3.5x. This suggests that UHT's enterprise value is slightly higher than its earnings before interest, taxes, depreciation, and amortization compared to other financial stocks. While the difference is not as pronounced as with the P/E ratio, it still indicates a slightly higher valuation. Given the lack of revenue growth, the EV/EBITDA ratio does not appear particularly attractive.
UHT's dividend yield is not provided, but it is a crucial metric for evaluating REITs. REITs are required to distribute a significant portion of their earnings as dividends, so the dividend yield is a key driver of investor returns. If UHT's dividend yield is relatively low compared to other healthcare REITs, it would further support the argument that the stock is overvalued. Investors should carefully consider the dividend yield before investing in UHT.
Considering UHT's stagnant revenue growth, high debt levels, and relatively high valuation metrics, the stock appears to be fairly valued to slightly overvalued. The company's stability and profitability are attractive, but its lack of growth and high leverage limit its upside potential. Investors should demand a lower valuation to compensate for these risks. A more attractive entry point would be at a lower P/E ratio and a higher dividend yield.
Risk & Uncertainty
Universal Health Realty Income Trust faces several specific risks that could negatively impact its financial performance and stock price. These risks include tenant concentration, interest rate risk, regulatory changes in the healthcare industry, and competition from other REITs.
Tenant concentration is a significant risk for UHT. While the exact percentage of revenue derived from its largest tenants is not provided, a high concentration of revenue from a few key tenants would make UHT vulnerable to tenant defaults or lease renegotiations. If a major tenant were to experience financial difficulties or decide not to renew its lease, UHT's rental income could be significantly reduced. This risk is particularly relevant in the healthcare industry, where operators face regulatory and reimbursement pressures.
Interest rate risk is another major concern, given UHT's high level of debt. As interest rates rise, UHT's borrowing costs will increase, reducing its profitability and cash flow. This could also make it more difficult for UHT to refinance its debt on favorable terms. The high debt-to-equity ratio exacerbates this risk, as UHT is more sensitive to interest rate fluctuations than REITs with lower leverage.
Regulatory changes in the healthcare industry pose a significant risk to UHT's tenants and, consequently, to UHT's rental income. Changes in reimbursement policies, healthcare reform initiatives, and other regulations could negatively impact the financial performance of healthcare operators, making it more difficult for them to pay rent. This risk is particularly relevant given the ongoing uncertainty surrounding healthcare policy in the United States.
Competition from other REITs is also a factor. The healthcare REIT sector is highly competitive, with numerous players vying for attractive investment opportunities. UHT's smaller size and limited capital resources compared to larger REITs may put it at a disadvantage in competing for acquisitions and development projects. This could limit UHT's ability to grow its portfolio and increase its rental income.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUHT's focus on healthcare properties provides a defensive investment in a recession-resistant sector, ensuring stable cash flows and dividend payouts.
BULL VIEWThe company's long-term relationships with established healthcare operators, particularly Universal Health Services, provide a consistent pipeline of investment opportunities and reduce vacancy risk.
BULL VIEWUHT's high stability score (89/100) indicates lower volatility compared to other REITs, making it an attractive option for risk-averse investors seeking steady income.
The Bear Case
BEAR VIEWUHT's negative revenue growth and high P/E ratio suggest the stock is overvalued, with limited potential for capital appreciation.
BEAR VIEWThe company's high debt levels expose it to significant interest rate risk, potentially squeezing profit margins and hindering future growth.
BEAR VIEWUHT's smaller size and limited diversification compared to larger healthcare REITs make it more vulnerable to tenant concentration risk and regional economic downturns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score UHT and 4,400+ other equities.
UNIVERSAL HEALTH REALTY INCOME TRUST exhibits a 351% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
35.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
17.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+204%
Income Projection audit
A $10,000 investment would generate approximately $753 annually in dividends at the current trailing rate.
