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1. Company Snapshot

1.a. Company Description

U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries.It operates through two segments, Physical Therapy Operations and Industrial Injury Prevention Services.The company offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors.


As of December 31, 2021, it operated 591 clinics in 39 states; and managed 35 physical therapy practice facilities.The company was founded in 1990 and is based in Houston, Texas.

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1.b. Last Insights on USPH

U.S. Physical Therapy, Inc.'s recent performance was positively driven by its Q2 2025 earnings beat, with quarterly earnings of $0.81 per share exceeding the Zacks Consensus Estimate of $0.71 per share. The company's strategic acquisition of a three-clinic physical therapy practice, generating $5.3 million in annual revenues, also contributed to growth. Additionally, Wall Street analysts expect a potential upside of 26.5% in the stock, citing a positive trend in earnings estimate revisions. The company's value proposition is also being compared favorably to peers, such as Elanco Animal Health Incorporated.

1.c. Company Highlights

2. U.S. Physical Therapy's Q2 2025 Earnings: A Strong Performance

U.S. Physical Therapy, Inc. reported a robust second-quarter 2025 performance, with revenue in physical therapy services growing 17.3% to $168.3 million, driven by acquisitions and organic growth. The company's adjusted EBITDA increased to $26.9 million, representing a significant improvement over the prior year. Earnings per share (EPS) came in at $0.67, in line with analyst estimates. The company's gross profit margin in physical therapy improved to 21.1% from 20.1% in the prior year, indicating effective cost management. The net rate per visit was $105.33, up from $105.05 in the prior year, driven by commercial rate increases and a shift in the mix of patients.

Publication Date: Mar -09

📋 Highlights
  • Record Visits & Patient Satisfaction: Achieved 32.7 visits per clinic per day (up 6.8% YoY) with a Net Promoter Score of 93.5 (95% promoters, 1% detractors).
  • Revenue & Margin Growth: Physical therapy revenue rose 17.3% to $168.3M; gross profit margin improved to 21.1% (from 20.1%) and adjusted EBITDA increased $4.7M to $26.9M (17.5% margin).
  • Capital Deployment & Buybacks: Raised full-year adjusted EBITDA guidance to $93–$97M and initiated a $25M share repurchase program by 2026, prioritizing injury prevention investments.
  • Operational Efficiency: Reduced total operating cost per visit YoY, achieved 50+ net clinic additions, and 7% YoY growth in visits per clinic (31 avg. pre-Metro vs. 32.7 post).
  • Technological & Labor Innovations: Deployed AI for clinical documentation (clinician-approved) and semi-virtualized front desks; student clinical rotations rose 25%, turnover hit a 7-year low.

Operational Highlights

The company added over 50 net clinics compared to the prior year period, and visits per clinic per day reached a record 32.7, up from 30.6. The company's Net Promoter Score was 93.5, with 95% of patients being active promoters, indicating high patient satisfaction. The company is also focusing on expanding its injury prevention services, with a strong pipeline of opportunities.

Segment Performance

The Industrial Injury Prevention (IIP) segment performed well, with margins expanding year over year. The company's efforts to grow this segment are evident, with a focus on partnerships and investments in injury prevention. The physical therapy segment also saw significant growth, driven by acquisitions and organic growth.

Valuation and Outlook

With a P/E Ratio of 79.85 and an EV/EBITDA of 14.8, the company's valuation appears to be pricing in significant future growth. Analysts expect the company's revenue to grow at 5.5% next year. The company's efforts to expand its services, improve operational efficiency, and enhance profitability are expected to drive long-term growth. As Chris Reading, the CEO, noted, "we are well-positioned to benefit from the push to onshore manufacturing," which is expected to drive growth in the company's industrial injury prevention services.

Capital Allocation and Strategic Investments

The company is focused on strategic investments to drive growth, including investments in injury prevention and physical therapy. The company has introduced a buyback program, indicating its confidence in its valuation and future prospects. The company's capital allocation priorities are focused on investing in its core business, while also exploring opportunities for growth through acquisitions and partnerships.

3. NewsRoom

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Analysts Set U.S. Physical Therapy, Inc. (NYSE:USPH) Target Price at $104.50

Mar -16

Source: defenseworld.net

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$9 Million Exit: Investor Dumps 110,000 Shares of U.S. Physical Therapy as Stock Lags Broader Market

Mar -04

Source: fool.com

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U.S. Physical Therapy, Inc. (USPH) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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U.S. Physical Therapy Announces Strategic Alliance with NYU Langone Health

Feb -02

Source: businesswire.com

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U.S. Physical Therapy (NYSE:USPH) Stock Price Crosses Above 200-Day Moving Average – What’s Next?

Jan -30

Source: defenseworld.net

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Fresenius SE & Co. (OTCMKTS:FSNUY) vs. U.S. Physical Therapy (NYSE:USPH) Head to Head Review

Jan -06

Source: defenseworld.net

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Copeland Capital Management LLC Sells 44,754 Shares of U.S. Physical Therapy, Inc. $USPH

Dec -30

Source: defenseworld.net

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Head-To-Head Comparison: U.S. Physical Therapy (NYSE:USPH) vs. Encompass Health (NYSE:EHC)

Dec -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.81%)

6. Segments

Physical Therapy

Expected Growth: 5.8%

U.S. Physical Therapy's 5.8% growth in Physical Therapy segment is driven by increasing demand for outpatient physical therapy services, aging population, and growing need for cost-effective treatment options. Additionally, the company's strategic acquisitions, expansion of service offerings, and strong operational efficiency also contribute to the growth.

Industrial Injury Prevention Services

Expected Growth: 5.9%

U.S. Physical Therapy's Industrial Injury Prevention Services growth is driven by increasing demand for workplace safety, rising healthcare costs, and growing awareness of occupational health risks. Additionally, the service's focus on prevention and early intervention resonates with employers seeking to reduce workers' compensation claims and improve productivity.

7. Detailed Products

Outpatient Clinics

U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics that provide physical therapy, occupational therapy, and speech therapy services to patients.

Industrial Injury Prevention

The company offers industrial injury prevention services, including on-site physical therapy, ergonomic assessments, and injury prevention programs.

On-Site Physical Therapy

U.S. Physical Therapy, Inc. provides on-site physical therapy services to patients in their homes, offices, or other convenient locations.

Hand Therapy

The company offers specialized hand therapy services, including treatment for hand and upper extremity injuries and conditions.

Occupational Health Services

U.S. Physical Therapy, Inc. provides occupational health services, including pre-employment screenings, work conditioning, and return-to-work programs.

Sports Medicine

The company offers sports medicine services, including athletic training, sports performance training, and injury prevention programs.

8. U.S. Physical Therapy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for U.S. Physical Therapy, Inc. as the company provides specialized physical therapy services that are not easily substitutable.

Bargaining Power Of Customers

The bargaining power of customers is medium for U.S. Physical Therapy, Inc. as patients have some flexibility to choose from different physical therapy providers, but the company's strong reputation and quality of services limit the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for U.S. Physical Therapy, Inc. as the company is not heavily dependent on a single supplier, and there are many alternative suppliers available.

Threat Of New Entrants

The threat of new entrants is medium for U.S. Physical Therapy, Inc. as there are some barriers to entry, such as regulatory requirements and the need for specialized equipment and trained staff, but new entrants can still enter the market with sufficient resources and planning.

Intensity Of Rivalry

The intensity of rivalry is high for U.S. Physical Therapy, Inc. as the physical therapy industry is highly competitive, with many established players and a growing demand for services, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.64%
Debt Cost 4.77%
Equity Weight 72.36%
Equity Cost 10.85%
WACC 9.17%
Leverage 38.21%

11. Quality Control: U.S. Physical Therapy, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Healthcare Services Group

A-Score: 4.9/10

Value: 5.0

Growth: 2.9

Quality: 5.8

Yield: 2.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
U.S. Physical Therapy

A-Score: 4.3/10

Value: 3.9

Growth: 3.3

Quality: 5.9

Yield: 4.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Pennant

A-Score: 4.1/10

Value: 2.9

Growth: 8.2

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Aveanna Healthcare

A-Score: 3.9/10

Value: 3.7

Growth: 6.4

Quality: 3.9

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
AMN Healthcare Services

A-Score: 3.6/10

Value: 9.6

Growth: 4.6

Quality: 3.0

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
The Joint

A-Score: 3.1/10

Value: 2.8

Growth: 3.4

Quality: 5.1

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

74.75$

Current Price

74.75$

Potential

-0.00%

Expected Cash-Flows