Utah Medical Products (UTMD) opened Q2 2026 with total revenue of $8.5 million and basic EPS of $0.84, alongside net income excluding extra items of $2.7 million, providing a clear snapshot of how the business is currently earning its money. The company has reported quarterly revenue moving from $9.7 million and EPS of $0.92 in Q1 2025 to $8.5 million and EPS of $0.84 in Q2 2026, with trailing 12 month revenue at $36.1 million and EPS at $3.28. Investors are weighing these results against a backdrop of a 29% net profit margin and a multiyear earnings decline. Overall, the latest numbers keep the focus firmly on how efficiently Utah Medical Products is converting sales into profit and what that means for margins.
See our full analysis for Utah Medical Products.With the headline figures on the table, the next step is to see how these results line up with the widely held narratives around Utah Medical Products, highlighting where the numbers support the story and where they start to challenge it.
Curious how numbers become stories that shape markets? Explore Community Narratives
Margins Softening With 29% Net Profit Level
- Over the last 12 months Utah Medical Products has generated a 29% net profit margin, compared with 32.3% in the prior year, alongside trailing EPS of US$3.28 on US$36.1 million of revenue.
- What stands out for a bearish narrative is that this 29% margin sits next to a 5.8% average annual earnings decline over five years, which bears can point to as a pressure point, yet:
- Net income on a trailing basis is US$10.5 million, so even with the lower margin, Utah Medical Products is still producing meaningful profit relative to its US$36.1 million of sales.
- The quarterly pattern from Q2 2025 to Q2 2026 shows net income excluding extra items moving from US$3.0 million to US$2.7 million, which lines up with the multi year decline story without suggesting a sudden collapse.
Earnings Drift vs 5.8% Multi Year Decline
- Across the last six reported quarters, basic EPS has moved within a relatively tight band between US$0.80 and US$0.94 per quarter, while the longer term data shows reported earnings declining at an average rate of 5.8% per year over the past five years.
- Bears argue that the 5.8% annual earnings decline is the core risk for Utah Medical Products, yet the recent quarterly pattern may look more like a slow fade than a sharp break, because:
- Quarterly EPS in 2026 so far is US$0.82 and US$0.84, only slightly below the Q2 2025 level of US$0.94, which indicates the five year decline has been gradual rather than concentrated in a single weak period.
- Trailing 12 month EPS at Q2 2026 is US$3.28 compared with US$3.78 at Q1 2025, which gives bears factual support for the multi year decline while also showing that earnings remain firmly positive.
Valuation Gap vs DCF Fair Value of US$120.55
- At a share price of US$67.14, Utah Medical Products is trading about 44.3% below a DCF fair value of US$120.55, while its trailing P/E of 20.4x sits under the US Medical Equipment industry average of 26.4x and slightly below the 20.9x peer average.
- Supporters of a more bullish narrative often focus on this valuation spread, and the latest figures give them several concrete talking points:
- The combination of a 29% trailing net margin and a 20.4x P/E suggests the market is paying a lower multiple than the broader industry for a company that is still quite profitable on trailing numbers.
- A 1.85% dividend yield on top of the modeled DCF fair value of US$120.55 vs the current US$67.14 price creates a clear tension between the earnings decline risk and what appears to be a sizeable valuation discount.
Bulls who see the 44.3% gap to DCF fair value and lower than average P/E as the real story will want a deeper breakdown of how those numbers stack up against peers and long term fundamentals, and the easiest way to get that side of the argument is to head straight to the 🐂 Utah Medical Products Bull Case
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Utah Medical Products's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
With both risks and rewards on the table for Utah Medical Products, it is worth moving quickly to review the numbers yourself and decide where you stand on the 2 key rewards and 1 important warning sign
See What Else Is Out There
Utah Medical Products is dealing with a 5.8% multi year earnings decline and softening margins, even as recent quarters show only gradual slippage.
If that slow earnings fade and tighter profitability worry you, it is worth comparing Utah Medical Products with companies that screen as 49 high quality undervalued stocks so you can quickly see where the market may be pricing in similar risks more attractively.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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