ICON PLC (NASDAQ:ICLR): good value for what you're paying.

Uncover the hidden value in ICON PLC (NASDAQ:ICLR) as our stock screening tool recommends it as an undervalued choice. ICLR maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

What does the Valuation looks like for ICLR

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of ICLR, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio of 10.18, the valuation of ICLR can be described as reasonable.
• Based on the Price/Earnings ratio, ICLR is valued cheaper than 98.21% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.55. ICLR is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 10.04, the valuation of ICLR can be described as reasonable.
• ICLR's Price/Forward Earnings ratio is rather cheap when compared to the industry. ICLR is cheaper than 98.21% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of ICLR to the average of the S&P500 Index (19.83), we can say ICLR is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ICLR indicates a rather cheap valuation: ICLR is cheaper than 100.00% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ICLR is valued cheaply inside the industry as 98.21% of the companies are valued more expensively.
• ICLR has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Insights: ICLR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. ICLR was assigned a score of 6 for profitability:

• ICLR has a Return On Assets of 4.69%. This is in the better half of the industry: ICLR outperforms 76.79% of its industry peers.
• With an excellent Return On Equity value of 8.31%, ICLR belongs to the best of the industry, outperforming 80.36% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.84%, ICLR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• The last Return On Invested Capital (6.84%) for ICLR is above the 3 year average (5.80%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 9.56%, ICLR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 14.73%, ICLR is in the better half of the industry, outperforming 76.79% of the companies in the same industry.

Unpacking ICLR's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of ICLR, the assigned 5 reflects its health status:

• ICLR has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as ICLR would need 3.06 years to pay back of all of its debts.
• The Debt to FCF ratio of ICLR (3.06) is better than 78.57% of its industry peers.
• ICLR has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.

Growth Analysis for ICLR

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. ICLR scores a 6 out of 10:

• The Earnings Per Share has grown by an nice 9.63% over the past year.
• ICLR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.23% yearly.
• Measured over the past years, ICLR shows a very strong growth in Revenue. The Revenue has been growing by 24.17% on average per year.
• Based on estimates for the next years, ICLR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.13% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of ICLR contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.