INNOVIVA INC (INVA) Stock Fundamental Analysis
NASDAQ:INVA - Nasdaq - US45781M1018 - Common Stock - Currency: USD
Overall INVA gets a fundamental rating of 6 out of 10. We evaluated INVA against 194 industry peers in the Pharmaceuticals industry. While INVA has a great health rating, its profitability is only average at the moment. INVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make INVA suitable for value investing!
1. Profitability
1.1 Basic Checks
INVA had negative earnings in the past year.
In the past year INVA had a positive cash flow from operations.
Each year in the past 5 years INVA has been profitable.
INVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INVA's Return On Assets of -4.76% is fine compared to the rest of the industry. INVA outperforms 74.74% of its industry peers.
INVA has a Return On Equity of -9.23%. This is in the better half of the industry: INVA outperforms 77.84% of its industry peers.
INVA's Return On Invested Capital of 13.88% is amongst the best of the industry. INVA outperforms 92.27% of its industry peers.
INVA had an Average Return On Invested Capital over the past 3 years of 11.38%. This is below the industry average of 14.92%.
The last Return On Invested Capital (13.88%) for INVA is above the 3 year average (11.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -9.23% | ||
| ROIC | 13.88% |
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
In the last couple of years the Profit Margin of INVA has declined.
INVA has a better Operating Margin (49.34%) than 98.97% of its industry peers.
In the last couple of years the Operating Margin of INVA has declined.
With an excellent Gross Margin value of 90.68%, INVA belongs to the best of the industry, outperforming 94.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.34% | ||
| PM (TTM) | N/A | ||
| GM | 90.68% |
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
The number of shares outstanding for INVA has been reduced compared to 5 years ago.
The debt/assets ratio for INVA has been reduced compared to a year ago.
2.2 Solvency
INVA has an Altman-Z score of 2.19. This is not the best score and indicates that INVA is in the grey zone with still only limited risk for bankruptcy at the moment.
INVA has a Altman-Z score of 2.19. This is in the better half of the industry: INVA outperforms 67.53% of its industry peers.
The Debt to FCF ratio of INVA is 2.29, which is a good value as it means it would take INVA, 2.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, INVA belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that INVA is not too dependend on debt financing.
INVA has a Debt to Equity ratio (0.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.59
WACC8.73%
2.3 Liquidity
A Current Ratio of 2.48 indicates that INVA has no problem at all paying its short term obligations.
INVA has a Current ratio (2.48) which is in line with its industry peers.
INVA has a Quick Ratio of 2.30. This indicates that INVA is financially healthy and has no problem in meeting its short term obligations.
INVA has a Quick ratio (2.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
The earnings per share for INVA have decreased strongly by -145.50% in the last year.
The earnings per share for INVA have been decreasing by -33.21% on average. This is quite bad
The Revenue has grown by 18.68% in the past year. This is quite good.
INVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.57% yearly.
EPS 1Y (TTM)-145.5%
EPS 3Y-52.04%
EPS 5Y-33.21%
EPS Q2Q%-260.87%
Revenue 1Y (TTM)18.68%
Revenue growth 3Y-2.91%
Revenue growth 5Y6.57%
Sales Q2Q%14.37%
3.2 Future
INVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 99.32% yearly.
INVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.46% yearly.
EPS Next Y259.68%
EPS Next 2Y279.31%
EPS Next 3Y166.36%
EPS Next 5Y99.32%
Revenue Next Year3.73%
Revenue Next 2Y6.45%
Revenue Next 3Y8.19%
Revenue Next 5Y14.46%
3.3 Evolution
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
INVA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 6.71, the valuation of INVA can be described as very cheap.
Based on the Price/Forward Earnings ratio, INVA is valued cheaper than 90.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, INVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVA is valued cheaper than 98.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INVA is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
INVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of INVA may justify a higher PE ratio.
INVA's earnings are expected to grow with 166.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y279.31%
EPS Next 3Y166.36%
5. Dividend
5.1 Amount
INVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.34
-0.12 (-0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners110.68%
Inst Owner Change0.75%
Ins Owners1.06%
Ins Owner Change1.18%
Market Cap1.15B
Analysts82.22
Price Target41.14 (124.32%)
Short Float %15.99%
Short Ratio10.59
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)-190.64%
Min EPS beat(2)-350.17%
Max EPS beat(2)-31.11%
EPS beat(4)0
Avg EPS beat(4)-200.83%
Min EPS beat(4)-350.17%
Max EPS beat(4)-31.11%
EPS beat(8)3
Avg EPS beat(8)-31.34%
EPS beat(12)5
Avg EPS beat(12)-64.48%
EPS beat(16)7
Avg EPS beat(16)-34.55%
Revenue beat(2)2
Avg Revenue beat(2)4.4%
Min Revenue beat(2)3.7%
Max Revenue beat(2)5.11%
Revenue beat(4)4
Avg Revenue beat(4)13.51%
Min Revenue beat(4)3.7%
Max Revenue beat(4)31.13%
Revenue beat(8)7
Avg Revenue beat(8)10.16%
Revenue beat(12)9
Avg Revenue beat(12)-0.41%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-26.67%
PT rev (3m)-26.67%
EPS NQ rev (1m)16.28%
EPS NQ rev (3m)51.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-54.58%
Revenue NQ rev (1m)5.63%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.71 | ||
| P/S | 3.11 | ||
| P/FCF | 5.87 | ||
| P/OCF | 5.75 | ||
| P/B | 1.78 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)-1.01
EYN/A
EPS(NY)2.73
Fwd EY14.91%
FCF(TTM)3.12
FCFY17.02%
OCF(TTM)3.19
OCFY17.39%
SpS5.89
BVpS10.3
TBVpS5.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -9.23% | ||
| ROCE | 17.9% | ||
| ROIC | 13.88% | ||
| ROICexc | 24.72% | ||
| ROICexgc | 49.43% | ||
| OM | 49.34% | ||
| PM (TTM) | N/A | ||
| GM | 90.68% | ||
| FCFM | 52.99% |
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-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 17.62 | ||
| Cash Conversion | 90.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 2.19 |
F-Score6
WACC8.73%
ROIC/WACC1.59
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)-145.5%
EPS 3Y-52.04%
EPS 5Y-33.21%
EPS Q2Q%-260.87%
EPS Next Y259.68%
EPS Next 2Y279.31%
EPS Next 3Y166.36%
EPS Next 5Y99.32%
Revenue 1Y (TTM)18.68%
Revenue growth 3Y-2.91%
Revenue growth 5Y6.57%
Sales Q2Q%14.37%
Revenue Next Year3.73%
Revenue Next 2Y6.45%
Revenue Next 3Y8.19%
Revenue Next 5Y14.46%
EBIT growth 1Y66.31%
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 1Y51.7%
FCF growth 3Y-20.27%
FCF growth 5Y-6.46%
OCF growth 1Y54.88%
OCF growth 3Y-19.65%
OCF growth 5Y-6.03%