HOUSTON - U.S. Physical Therapy, Inc. (NYSE: USPH), a prominent operator of outpatient physical therapy clinics, has acquired a 50% stake in a physical and hand therapy practice, further expanding its national footprint. The practice, which includes nine clinic locations, was purchased for $16.4 million.
The newly acquired practice is reported to generate approximately $11.4 million in annual revenues and hosts around 65,000 patient visits each year. The current owners of the practice will retain the remaining 50% equity.
Chief Executive Officer of USPH, Chris Reading, expressed optimism about the new partnership, highlighting the acquired practice's strong performance in workers' compensation services and potential for growth in the market.
U.S. Physical Therapy, Inc., founded in 1990, is a nationwide provider of outpatient physical therapy services. With this latest acquisition, the company continues to strengthen its market presence. USPH operates 678 clinics across 42 states, offering a range of services including orthopedic care, sports injury treatment, neurological rehabilitation, and industrial injury prevention.
The company also manages physical therapy facilities for third parties and delivers onsite industrial injury prevention services, which include injury prevention and rehabilitation, performance optimization, and ergonomic assessments among other services.
The information reported is based on a press release statement from U.S. Physical Therapy, Inc.
InvestingPro Insights
As U.S. Physical Therapy, Inc. (NYSE: USPH) continues to expand its national footprint with strategic acquisitions, investors are keeping a close watch on the company's financial health and stock performance. According to InvestingPro, USPH's market capitalization stands at approximately $1.7 billion, reflecting the company's substantial presence in the outpatient physical therapy sector.
The company's price-to-earnings (P/E) ratio, a key metric for valuing a company, is currently high at 67.24 when adjusted for the last twelve months as of Q4 2023. This suggests that investors are willing to pay a premium for USPH's earnings, possibly due to expectations of future growth. Moreover, the company has demonstrated resilience with a revenue growth of 9.32% over the same period, indicating a solid top-line performance.
Investors might also be encouraged by USPH's consistent dividend payments, which have been maintained for 14 consecutive years, with a current dividend yield of 1.56%. This steady income stream could be particularly attractive in a volatile market environment.
Two InvestingPro Tips to consider are that USPH has raised its dividend for three consecutive years and is expected to see net income growth this year. These factors, combined with the company's strong return over the last three months, could signal a positive outlook for investors. For those seeking more insights, there are additional InvestingPro Tips available, providing a deeper dive into USPH's financials and stock performance.
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