Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 10 Jun 2026
UTHR· Healthcare
United Therapeutics
United Therapeutics boasts an impressive 86.6% gross margin and a strong 18.8% ROIC, positioning it as a top-tier player in the healthcare sector.
Buffett fit
Partial fit
Owner
70
Durability
100
Management
78
Price
51
Score updated 26 Sept 2026 · analysis from 10 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of United Therapeutics, I would focus on expanding the pipeline and enhancing market penetration for existing products.
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The business has shown consistent profitability over the last 5 years, with no decline in EPS.
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Management has demonstrated discipline with a share count CAGR of -0.34%, indicating a commitment to rather than dilution.
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With an yield of 4.31% and a of 19.2, the valuation appears stretched against my target of 8-10%.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 18.8% exceeds the sector's top-quintile cutoff of 5.3%.
- 2 of 86.6% is significantly above the 78.4% sector top-quintile threshold.
- 3 of 45.3% ranks in the top tier of the healthcare sector.
- 4Consistent revenue growth with a 5-year CAGR of 17.22%.
Concerns
5- 1 yield of 4.31% is below my target threshold of 8-10%.
- 2Valuation at a of 19.2 may not provide sufficient .
- 3 growth is negative at -3.69% YoY, raising questions about future cash generation.
- 4Lack of a clear could expose the company to competitive threats.
Price history
$585+206.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
United Therapeutics develops therapies for chronic and life-threatening diseases, generating $3.18 billion in revenue, primarily from products like Remodulin and Tyvaso. Their focus on pulmonary arterial hypertension (PAH) allows them to maintain high of 86.6%. This business model is resilient, driven by significant unmet medical needs.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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