One-glance verdict
Within fair range
$83.43 our estimate vs market $85.83
Wall Street consensus: $97.83 (17.3% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
U.S. Physical Therapy, Inc.
USPH · NYQ · Healthcare · Medical Care Facilities
Current price
$85.83
52-week range
$58.19 - $90.94
Market cap
$1.28B
Balance sheet
Watch
8.50x Adequate
Net debt $359.53M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 6.5% on equity, ahead of 20% of its peers.
- Risk Stock trades 799.8% above its 5-year average P/E.
- Risk Net debt grew 6.0% over 3 years.
What this company does
U.S. Physical Therapy, Inc.
U.S. Physical Therapy, Inc. runs a bunch of outpatient physical therapy clinics and also offers services to big companies to prevent injuries at work. The money mostly comes from treating people with injuries and helping businesses keep their employees healthy, which is important because people will always need healthcare services.
How the company got here
U.S. Physical Therapy, Inc. was founded in 1990 by J. Livingston Kosberg, a businessman with prior experience in nursing homes, television, insurance, and banking. The company's initial strategy involved acquiring existing physical therapy clinics, and it went public on the NASDAQ exchange in 1992. Over the years, USPH has grown through a combination of building new clinics and making strategic acquisitions, often partnering with existing practice owners. The company has also expanded its services to include industrial injury prevention. USPH's growth has been accelerated by these acquisitions, which are frequently structured to allow practice owners to retain significant ownership stakes.
What it actually does
U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics that offer a range of services. These services include care before and after surgery for orthopedic conditions and sports injuries, rehabilitation for individuals with neurological issues, and recovery programs for injured workers. The company also provides industrial injury prevention services to employers, which can include on-site injury prevention, rehabilitation, and assessments to improve workplace safety and employee performance. Payments for these services primarily come from managed care programs, commercial health insurance, Medicare/Medicaid, and workers' compensation insurance.
Physical Therapy Operations
This is the largest part of U.S. Physical Therapy's business, making up about 87% of its revenue. The company operates a large network of outpatient physical therapy clinics across the United States, providing care for a variety of conditions. These clinics help patients recover from orthopedic injuries, sports-related issues, post-operative recovery, and neurological conditions. They also offer preventative care and rehabilitation services for individuals who have been injured at work. The company often partners with local physicians and other healthcare providers to ensure patients receive the necessary referrals and care.
Industrial Injury Prevention Services
This segment of U.S. Physical Therapy's business focuses on providing services directly to employers, often large companies, to help prevent workplace injuries and improve employee health. Services include on-site injury prevention and rehabilitation programs, performance optimization, post-offer employment testing (which assesses a candidate's physical ability for a job), functional capacity evaluations (measuring a person's ability to perform work-related tasks), and ergonomic assessments (evaluating workstations for safety and efficiency). These services are typically paid for by the employers themselves, aiming to reduce workplace injuries and associated costs.
What management is betting on now
U.S. Physical Therapy's management is focused on continued growth through strategic acquisitions of physical therapy practices and industrial injury prevention businesses. They believe that demand for therapy services will increase as healthcare increasingly favors cost-effective, outcome-oriented treatments. The company also emphasizes its role in advocating for the physical therapy profession, supporting initiatives that protect patient access to care and ensure the sustainability of practices. Management is also investing in employee development through programs like the Masters Institute, which provides operational and clinical training to clinic leaders and staff.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$19.60M
FY2024 Q4
$16.92M
FY2025 Q1
$-7.25M
FY2025 Q2
$31.61M
FY2025 Q3
$15.62M
FY2025 Q4
$21.01M
FY2026 Q1
$-1.56M
FY2026 Q2
$29.01M
Revenue
$214.06M
Net income
$9.90M
Diluted EPS
0.25
Operating cash flow
$34.37M
Free cash flow
$29.01M
Fetching…
Sources
Revenue
$198.29M
Net income
$5.04M
Diluted EPS
-0.12
Operating cash flow
$3.81M
Free cash flow
$-1.56M
Fetching…
Sources
Revenue
$202.73M
Net income
$4.15M
Diluted EPS
-0.44
Operating cash flow
$24.93M
Free cash flow
$21.01M
Fetching…
Sources
Revenue
$197.13M
Net income
$13.14M
Diluted EPS
0.48
Operating cash flow
$19.94M
Free cash flow
$15.62M
Fetching…
Sources
Revenue
$197.34M
Net income
$12.39M
Diluted EPS
0.58
Operating cash flow
$34.86M
Free cash flow
$31.61M
Fetching…
Sources
Revenue
$183.79M
Net income
$9.90M
Diluted EPS
0.80
Operating cash flow
$-4.67M
Free cash flow
$-7.25M
Fetching…
Sources
Revenue
$180.45M
Net income
$9.24M
Diluted EPS
0.52
Operating cash flow
$19.41M
Free cash flow
$16.92M
Fetching…
Sources
Revenue
$168.03M
Net income
$6.63M
Diluted EPS
0.39
Operating cash flow
$22.12M
Free cash flow
$19.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $83.43 vs current price $85.83
Wall Street consensus is the average analyst price target: $97.83 (17.3% higher than our fair-value estimate).
Our most-likely fair value is $83.43 a share — about 2.8% away from today's price of $85.83, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $359.5M. Interest coverage 8.5x.
Net debt
$359.53M
Interest coverage
8.50x
U.S. Physical Therapy, Inc.'s profit covers its interest bill about 8.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
USPH
BASELINE
U.S. Physical Therapy, Inc.
Total debt $385.79M Interest coverage 8.50x This is the baseline the peer rows are being compared against.
Total debt $495.55M Interest coverage 7.62x -10% vs USPH Has roughly the same debt cushion as USPH.
Total debt $108.82M Interest coverage 10.18x +20% vs USPH Carries about 1.2x more debt cushion than USPH.
Total debt $1.51B Interest coverage 1.94x -77% vs USPH Carries about 4.4x less debt cushion than USPH.
What you should know
The case for and against USPH
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Returns 6.5% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 799.8% above its 5-year average P/E.
-
Net debt grew 6.0% over 3 years.
-
Insider ownership is only 2.6% (peer median: 4.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
476.83x
Forward P/E
25.79x
P/B
2.86x
P/S
1.59x
EV/EBITDA
19.20x
PEG ratio
2.81x
Profitability
How much profit each dollar creates
Gross margin
21.5%
Operating margin
11.1%
Net margin
4.0%
ROE
6.5%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
1.27x
Quick ratio
1.13x
Total debt
$385.79M
Total cash
$26.26M
Growth
How the business has been compounding
Revenue TTM
$812.20M
Revenue 5Y CAGR
12.1%
EPS TTM
0.18
EPS 5Y CAGR
-14.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$83.05M
Free CF TTM
$60.99M
FCF margin
7.5%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
1,011.1%
Last ex-div date
2026-08-21