ICON PLC (ICLR) Stock Fundamental Analysis
NASDAQ:ICLR - Nasdaq - IE0005711209 - Common Stock - Currency: USD
ICLR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of ICLR get a neutral evaluation. Nothing too spectacular is happening here. ICLR is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ICLR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ICLR had positive earnings in the past year.
In the past year ICLR had a positive cash flow from operations.
In the past 5 years ICLR has always been profitable.
Each year in the past 5 years ICLR had a positive operating cash flow.
1.2 Ratios
ICLR has a better Return On Assets (4.53%) than 76.36% of its industry peers.
ICLR has a Return On Equity of 7.98%. This is amongst the best in the industry. ICLR outperforms 81.82% of its industry peers.
With a decent Return On Invested Capital value of 6.71%, ICLR is doing good in the industry, outperforming 74.55% of the companies in the same industry.
ICLR had an Average Return On Invested Capital over the past 3 years of 5.80%. This is significantly below the industry average of 13.60%.
The last Return On Invested Capital (6.71%) for ICLR is above the 3 year average (5.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 7.98% | ||
| ROIC | 6.71% |
ROA(3y)3.74%
ROA(5y)4.36%
ROE(3y)6.96%
ROE(5y)8.15%
ROIC(3y)5.8%
ROIC(5y)6.92%
1.3 Margins
With a decent Profit Margin value of 9.25%, ICLR is doing good in the industry, outperforming 76.36% of the companies in the same industry.
In the last couple of years the Profit Margin of ICLR has declined.
With a decent Operating Margin value of 14.54%, ICLR is doing good in the industry, outperforming 76.36% of the companies in the same industry.
ICLR's Operating Margin has been stable in the last couple of years.
The Gross Margin of ICLR (29.06%) is worse than 74.55% of its industry peers.
In the last couple of years the Gross Margin of ICLR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.54% | ||
| PM (TTM) | 9.25% | ||
| GM | 29.06% |
OM growth 3Y9.91%
OM growth 5Y-0.95%
PM growth 3Y50.65%
PM growth 5Y-6.44%
GM growth 3Y2.3%
GM growth 5Y-0.09%
2. Health
2.1 Basic Checks
ICLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ICLR has less shares outstanding
Compared to 5 years ago, ICLR has more shares outstanding
The debt/assets ratio for ICLR has been reduced compared to a year ago.
2.2 Solvency
ICLR has an Altman-Z score of 1.96. This is not the best score and indicates that ICLR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.96, ICLR perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
ICLR has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as ICLR would need 3.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.23, ICLR is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
ICLR has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
ICLR has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: ICLR outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.82
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.27 indicates that ICLR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, ICLR is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
ICLR has a Quick Ratio of 1.27. This is a normal value and indicates that ICLR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ICLR (1.27) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.85% 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.
The Revenue has decreased by -0.48% in the past year.
ICLR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.17% yearly.
EPS 1Y (TTM)2.85%
EPS 3Y13.76%
EPS 5Y15.23%
EPS Q2Q%-8.07%
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y14.75%
Revenue growth 5Y24.17%
Sales Q2Q%-4.26%
3.2 Future
Based on estimates for the next years, ICLR will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y-3.26%
EPS Next 2Y2.4%
EPS Next 3Y4.89%
EPS Next 5Y6.55%
Revenue Next Year-3.79%
Revenue Next 2Y-0.87%
Revenue Next 3Y0.99%
Revenue Next 5Y2.07%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.61 indicates a reasonable valuation of ICLR.
Based on the Price/Earnings ratio, ICLR is valued cheaper than 100.00% of the companies in the same industry.
ICLR is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of ICLR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ICLR indicates a rather cheap valuation: ICLR is cheaper than 96.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. ICLR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
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 cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The decent profitability rating of ICLR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y2.4%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
No dividends for ICLR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
145.54
+0.81 (+0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.89%
Inst Owner Change0.89%
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap11.56B
Analysts78.46
Price Target182.01 (25.06%)
Short Float %1.93%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.48%
Min EPS beat(2)-1.19%
Max EPS beat(2)0.23%
EPS beat(4)1
Avg EPS beat(4)-3.85%
Min EPS beat(4)-14.41%
Max EPS beat(4)0.23%
EPS beat(8)1
Avg EPS beat(8)-2.42%
EPS beat(12)4
Avg EPS beat(12)-1.63%
EPS beat(16)7
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)-1.54%
Revenue beat(8)0
Avg Revenue beat(8)-2.81%
Revenue beat(12)0
Avg Revenue beat(12)-2.47%
Revenue beat(16)0
Avg Revenue beat(16)-2.13%
PT rev (1m)-6.3%
PT rev (3m)-28.37%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-5.06%
EPS NY rev (1m)-3.02%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-4.91%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-4.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 9.91 | ||
| P/S | 1.41 | ||
| P/FCF | 10.93 | ||
| P/OCF | 9.42 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.89 |
EPS(TTM)13.72
EY9.43%
EPS(NY)14.68
Fwd EY10.09%
FCF(TTM)13.31
FCFY9.15%
OCF(TTM)15.45
OCFY10.62%
SpS103.1
BVpS119.57
TBVpS-38.58
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 7.98% | ||
| ROCE | 8.49% | ||
| ROIC | 6.71% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 100.08% | ||
| OM | 14.54% | ||
| PM (TTM) | 9.25% | ||
| GM | 29.06% | ||
| FCFM | 12.91% |
ROA(3y)3.74%
ROA(5y)4.36%
ROE(3y)6.96%
ROE(5y)8.15%
ROIC(3y)5.8%
ROIC(5y)6.92%
ROICexc(3y)5.97%
ROICexc(5y)8.67%
ROICexgc(3y)88.82%
ROICexgc(5y)90.84%
ROCE(3y)7.34%
ROCE(5y)8.76%
ROICexcg growth 3Y-4.45%
ROICexcg growth 5Y-5.01%
ROICexc growth 3Y27.99%
ROICexc growth 5Y-24.17%
OM growth 3Y9.91%
OM growth 5Y-0.95%
PM growth 3Y50.65%
PM growth 5Y-6.44%
GM growth 3Y2.3%
GM growth 5Y-0.09%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 39.01% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.48% | ||
| Profit Quality | 139.54% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.96 |
F-Score7
WACC8.14%
ROIC/WACC0.82
Cap/Depr(3y)27.79%
Cap/Depr(5y)38.09%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.83%
Profit Quality(3y)130.43%
Profit Quality(5y)205.36%
High Growth Momentum
Growth
EPS 1Y (TTM)2.85%
EPS 3Y13.76%
EPS 5Y15.23%
EPS Q2Q%-8.07%
EPS Next Y-3.26%
EPS Next 2Y2.4%
EPS Next 3Y4.89%
EPS Next 5Y6.55%
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y14.75%
Revenue growth 5Y24.17%
Sales Q2Q%-4.26%
Revenue Next Year-3.79%
Revenue Next 2Y-0.87%
Revenue Next 3Y0.99%
Revenue Next 5Y2.07%
EBIT growth 1Y8.27%
EBIT growth 3Y26.12%
EBIT growth 5Y22.99%
EBIT Next Year1.89%
EBIT Next 3Y4.21%
EBIT Next 5Y4.16%
FCF growth 1Y191.78%
FCF growth 3Y15.01%
FCF growth 5Y25.32%
OCF growth 1Y139.85%
OCF growth 3Y15.78%
OCF growth 5Y25.55%