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NASDAQ:PINC, an undervalued stock with good fundamentals.

By Mill Chart

Last update: Nov 21, 2023

Discover PREMIER INC-CLASS A (NASDAQ:PINC), an undervalued stock highlighted by our stock screener. NASDAQ:PINC showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Unpacking NASDAQ:PINC's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:PINC was assigned a score of 7 for valuation:

  • With a Price/Earnings ratio of 8.35, the valuation of PINC can be described as very reasonable.
  • PINC's Price/Earnings ratio is rather cheap when compared to the industry. PINC is cheaper than 92.11% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PINC to the average of the S&P500 Index (24.44), we can say PINC is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 8.55, the valuation of PINC can be described as very reasonable.
  • 94.74% of the companies in the same industry are more expensive than PINC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 19.53. PINC is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, PINC is valued cheaply inside the industry as 88.60% of the companies are valued more expensively.
  • PINC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PINC is cheaper than 90.35% of the companies in the same industry.
  • The decent profitability rating of PINC may justify a higher PE ratio.

Profitability Assessment of NASDAQ:PINC

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. NASDAQ:PINC was assigned a score of 6 for profitability:

  • PINC has a better Return On Assets (4.60%) than 76.32% of its industry peers.
  • Looking at the Return On Equity, with a value of 7.53%, PINC is in the better half of the industry, outperforming 70.18% of the companies in the same industry.
  • PINC's Return On Invested Capital of 5.99% is fine compared to the rest of the industry. PINC outperforms 67.54% of its industry peers.
  • The Profit Margin of PINC (13.20%) is better than 94.74% of its industry peers.
  • PINC has a Operating Margin of 18.09%. This is amongst the best in the industry. PINC outperforms 98.25% of its industry peers.
  • PINC's Gross Margin of 67.48% is amongst the best of the industry. PINC outperforms 89.47% of its industry peers.

Understanding NASDAQ:PINC's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PINC has received a 5 out of 10:

  • The Debt to FCF ratio of PINC is 2.05, which is a good value as it means it would take PINC, 2.05 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.05, PINC belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
  • PINC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.26, PINC is doing good in the industry, outperforming 68.42% of the companies in the same industry.

Understanding NASDAQ:PINC's Growth Score

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PINC has achieved a 4 out of 10:

  • PINC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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PREMIER INC-CLASS A

NASDAQ:PINC (5/17/2024, 7:20:02 PM)

After market: 19.66 0 (0%)

19.66

-0.12 (-0.61%)

PINC News

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News Image10 days ago - Premier, Inc.Premier, Inc. Announces Cross-Industry Initiative to Improve Diagnosis and Care for Chronic Kidney Disease
News Image11 days ago - InvestorPlacePINC Stock Earnings: Premier Beats EPS, Beats Revenue for Q3 2024

PINC stock results show that Premier beat analyst estimates for earnings per share and beat on revenue for the third quarter of 2024.

News Image11 days ago - Premier, Inc.Premier, Inc. Reports Fiscal-Year 2024 Third-Quarter Results
News Image22 days ago - Premier, Inc.Premier, Inc. Declares Quarterly Cash Dividend
News Imagea month ago - Premier, Inc.Premier’s PINC AI™ and Fortune Name the Nation’s 100 Top Hospitals®
News Imagea month ago - Premier, Inc.Premier, Inc. to Report Fiscal 2024 Third-Quarter Results and Host Conference Call on May 7, 2024
News Image2 months ago - Premier, Inc.Premier, Inc. to Participate in Barclays Global Healthcare Conference on March 12, 2024
News Image3 months ago - Premier, Inc.PINC AI™ and Fortune Name the Nation’s 50 Top Cardiovascular Hospitals™
News Image3 months ago - Premier, Inc. and DatavantPremier, Inc.’s PINC AI™ Applied Sciences and Datavant Collaborate to Enable Next-Generation Clinical Trials
News Image3 months ago - Seeking AlphaPremier approves new $1B share buyback authorization (NASDAQ:PINC)

Premier approves $1B share buyback and seeks partners for Contigo Health holdings as part of its strategic review, aiming for growth and customer focus.

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