INNOVIVA INC (INVA) Stock Fundamental Analysis
NASDAQ:INVA - Nasdaq - US45781M1018 - Common Stock - Currency: USD
INVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making INVA a very profitable company, without any liquidiy or solvency issues. INVA is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make INVA suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year INVA was profitable.
INVA had a positive operating cash flow in the past year.
In the past 5 years INVA has always been profitable.
In the past 5 years INVA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of INVA (1.80%) is better than 84.85% of its industry peers.
INVA's Return On Equity of 3.38% is amongst the best of the industry. INVA outperforms 84.34% of its industry peers.
INVA's Return On Invested Capital of 12.16% is amongst the best of the industry. INVA outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INVA is significantly below the industry average of 41.62%.
The last Return On Invested Capital (12.16%) for INVA is above the 3 year average (11.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.38% | ||
| ROIC | 12.16% |
ROA(3y)11.21%
ROA(5y)16.95%
ROE(3y)22.61%
ROE(5y)34.7%
ROIC(3y)11.38%
ROIC(5y)18.16%
1.3 Margins
With an excellent Profit Margin value of 6.52%, INVA belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Profit Margin of INVA has declined.
INVA has a better Operating Margin (46.52%) than 97.98% of its industry peers.
In the last couple of years the Operating Margin of INVA has declined.
With an excellent Gross Margin value of 89.80%, INVA belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.52% | ||
| PM (TTM) | 6.52% | ||
| GM | 89.8% |
OM growth 3Y-21.38%
OM growth 5Y-13.2%
PM growth 3Y-54.19%
PM growth 5Y-35.9%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
INVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, INVA has less shares outstanding
INVA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, INVA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.15 indicates that INVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.15, INVA is doing good in the industry, outperforming 70.71% of the companies in the same industry.
INVA has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as INVA would need 2.43 years to pay back of all of its debts.
INVA has a better Debt to FCF ratio (2.43) than 92.42% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that INVA is not too dependend on debt financing.
INVA has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.39
WACC8.75%
2.3 Liquidity
INVA has a Current Ratio of 2.35. This indicates that INVA is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.35, INVA perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
INVA has a Quick Ratio of 2.21. This indicates that INVA is financially healthy and has no problem in meeting its short term obligations.
INVA's Quick ratio of 2.21 is in line compared to the rest of the industry. INVA outperforms 49.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
INVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -91.28%.
The earnings per share for INVA have been decreasing by -33.21% on average. This is quite bad
The Revenue has grown by 15.51% in the past year. This is quite good.
Measured over the past years, INVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)-91.28%
EPS 3Y-52.04%
EPS 5Y-33.21%
EPS Q2Q%-65.79%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y-2.91%
Revenue growth 5Y6.57%
Sales Q2Q%6.95%
3.2 Future
Based on estimates for the next years, INVA will show a very strong growth in Earnings Per Share. The EPS will grow by 78.55% on average per year.
The Revenue is expected to grow by 10.44% on average over the next years. This is quite good.
EPS Next Y691.84%
EPS Next 2Y223.55%
EPS Next 3Y134.6%
EPS Next 5Y78.55%
Revenue Next Year-0.49%
Revenue Next 2Y4.71%
Revenue Next 3Y7.76%
Revenue Next 5Y10.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 98.63 indicates a quite expensive valuation of INVA.
Based on the Price/Earnings ratio, INVA is valued a bit cheaper than 78.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. INVA is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 12.46, the valuation of INVA can be described as correct.
Based on the Price/Forward Earnings ratio, INVA is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.74. INVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.63 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVA indicates a rather cheap valuation: INVA is cheaper than 94.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INVA indicates a rather cheap valuation: INVA is cheaper than 94.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INVA has a very decent profitability rating, which may justify a higher PE ratio.
INVA's earnings are expected to grow with 134.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y223.55%
EPS Next 3Y134.6%
5. Dividend
5.1 Amount
INVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.74
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners115.83%
Inst Owner Change-0.17%
Ins Owners0.97%
Ins Owner Change-0.13%
Market Cap1.18B
Analysts82.5
Price Target56.1 (199.36%)
Short Float %14.35%
Short Ratio9.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-61.85%
Min EPS beat(2)-92.6%
Max EPS beat(2)-31.11%
EPS beat(4)1
Avg EPS beat(4)-71.97%
Min EPS beat(4)-329.45%
Max EPS beat(4)165.28%
EPS beat(8)4
Avg EPS beat(8)22.31%
EPS beat(12)5
Avg EPS beat(12)-37.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)8.89%
Min Revenue beat(2)3.7%
Max Revenue beat(2)14.09%
Revenue beat(4)4
Avg Revenue beat(4)15.16%
Min Revenue beat(4)3.7%
Max Revenue beat(4)31.13%
Revenue beat(8)7
Avg Revenue beat(8)12.25%
Revenue beat(12)8
Avg Revenue beat(12)-1.04%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)189.47%
PT rev (3m)189.47%
EPS NQ rev (1m)-12.12%
EPS NQ rev (3m)-23.68%
EPS NY rev (1m)-9.23%
EPS NY rev (3m)-13.99%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.63 | ||
| Fwd PE | 12.46 | ||
| P/S | 3.28 | ||
| P/FCF | 6.38 | ||
| P/OCF | 6.23 | ||
| P/B | 1.7 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)0.19
EY1.01%
EPS(NY)1.5
Fwd EY8.03%
FCF(TTM)2.94
FCFY15.68%
OCF(TTM)3.01
OCFY16.04%
SpS5.71
BVpS11.01
TBVpS6.29
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.38% | ||
| ROCE | 15.67% | ||
| ROIC | 12.16% | ||
| ROICexc | 19.84% | ||
| ROICexgc | 36.35% | ||
| OM | 46.52% | ||
| PM (TTM) | 6.52% | ||
| GM | 89.8% | ||
| FCFM | 51.41% |
ROA(3y)11.21%
ROA(5y)16.95%
ROE(3y)22.61%
ROE(5y)34.7%
ROIC(3y)11.38%
ROIC(5y)18.16%
ROICexc(3y)16.17%
ROICexc(5y)24.46%
ROICexgc(3y)28.95%
ROICexgc(5y)34.96%
ROCE(3y)14.67%
ROCE(5y)23.41%
ROICexcg growth 3Y-8.78%
ROICexcg growth 5Y-15.28%
ROICexc growth 3Y-21.15%
ROICexc growth 5Y-17.48%
OM growth 3Y-21.38%
OM growth 5Y-13.2%
PM growth 3Y-54.19%
PM growth 5Y-35.9%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 10.71% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 16.11 | ||
| Cash Conversion | 91.28% | ||
| Profit Quality | 788.39% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 2.15 |
F-Score7
WACC8.75%
ROIC/WACC1.39
Cap/Depr(3y)4.13%
Cap/Depr(5y)2.48%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.27%
Profit Quality(3y)320.3%
Profit Quality(5y)247.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-91.28%
EPS 3Y-52.04%
EPS 5Y-33.21%
EPS Q2Q%-65.79%
EPS Next Y691.84%
EPS Next 2Y223.55%
EPS Next 3Y134.6%
EPS Next 5Y78.55%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y-2.91%
Revenue growth 5Y6.57%
Sales Q2Q%6.95%
Revenue Next Year-0.49%
Revenue Next 2Y4.71%
Revenue Next 3Y7.76%
Revenue Next 5Y10.44%
EBIT growth 1Y46.6%
EBIT growth 3Y-23.66%
EBIT growth 5Y-7.5%
EBIT Next Year-6.31%
EBIT Next 3Y-8.15%
EBIT Next 5YN/A
FCF growth 1Y31.12%
FCF growth 3Y-20.27%
FCF growth 5Y-6.46%
OCF growth 1Y33.76%
OCF growth 3Y-19.65%
OCF growth 5Y-6.03%