INNOVIVA INC (INVA)

US45781M1018 - Common Stock

15.24  -0.05 (-0.33%)

After market: 15.24 0 (0%)

Fundamental Rating

6

INVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 203 industry peers in the Pharmaceuticals industry. INVA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INVA is cheap, but on the other hand it scores bad on growth. These ratings could make INVA a good candidate for value investing.



8

1. Profitability

1.1 Basic Checks

INVA had positive earnings in the past year.
INVA had a positive operating cash flow in the past year.
INVA had positive earnings in each of the past 5 years.
INVA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

INVA has a Return On Assets of 14.45%. This is amongst the best in the industry. INVA outperforms 94.03% of its industry peers.
INVA has a better Return On Equity (26.63%) than 93.53% of its industry peers.
With an excellent Return On Invested Capital value of 8.00%, INVA belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
INVA had an Average Return On Invested Capital over the past 3 years of 19.49%. This is above the industry average of 16.07%.
The last Return On Invested Capital (8.00%) for INVA is well below the 3 year average (19.49%), which needs to be investigated, but indicates that INVA had better years and this may not be a problem.
Industry RankSector Rank
ROA 14.45%
ROE 26.63%
ROIC 8%
ROA(3y)20.17%
ROA(5y)20.94%
ROE(3y)42.85%
ROE(5y)44.06%
ROIC(3y)19.49%
ROIC(5y)22.97%

1.3 Margins

The Profit Margin of INVA (57.88%) is better than 99.00% of its industry peers.
In the last couple of years the Profit Margin of INVA has declined.
INVA's Operating Margin of 36.65% is amongst the best of the industry. INVA outperforms 97.51% of its industry peers.
INVA's Operating Margin has declined in the last couple of years.
INVA has a better Gross Margin (86.24%) than 89.05% of its industry peers.
Industry RankSector Rank
OM 36.65%
PM (TTM) 57.88%
GM 86.24%
OM growth 3Y-27.27%
OM growth 5Y-16.67%
PM growth 3Y-4.58%
PM growth 5Y-17.49%
GM growth 3YN/A
GM growth 5YN/A

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), INVA is creating value.
INVA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for INVA has been reduced compared to 5 years ago.
INVA has a better debt/assets ratio than last year.

2.2 Solvency

INVA has an Altman-Z score of 1.84. 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.
Looking at the Altman-Z score, with a value of 1.84, INVA is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
INVA has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as INVA would need 3.17 years to pay back of all of its debts.
INVA has a Debt to FCF ratio of 3.17. This is amongst the best in the industry. INVA outperforms 90.05% of its industry peers.
INVA has a Debt/Equity ratio of 0.66. This is a neutral value indicating INVA is somewhat dependend on debt financing.
INVA has a worse Debt to Equity ratio (0.66) than 67.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 3.17
Altman-Z 1.84
ROIC/WACC1.17
WACC6.84%

2.3 Liquidity

INVA has a Current Ratio of 9.03. This indicates that INVA is financially healthy and has no problem in meeting its short term obligations.
INVA has a better Current ratio (9.03) than 82.09% of its industry peers.
A Quick Ratio of 7.96 indicates that INVA has no problem at all paying its short term obligations.
INVA has a better Quick ratio (7.96) than 80.60% of its industry peers.
Industry RankSector Rank
Current Ratio 9.03
Quick Ratio 7.96

3

3. Growth

3.1 Past

INVA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.80%.
Measured over the past 5 years, INVA shows a small growth in Earnings Per Share. The EPS has been growing by 4.02% on average per year.
The Revenue has decreased by -6.29% in the past year.
INVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.53% yearly.
EPS 1Y (TTM)-1.8%
EPS 3Y2.57%
EPS 5Y4.02%
EPS growth Q2Q177.55%
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y-2.68%
Revenue growth 5Y3.53%
Revenue growth Q2Q30.46%

3.2 Future

INVA is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -30.92% yearly.
Based on estimates for the next years, INVA will show a quite strong growth in Revenue. The Revenue will grow by 10.64% on average per year.
EPS Next Y-61.63%
EPS Next 2Y-30.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.44%
Revenue Next 2Y10.64%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

INVA is valuated cheaply with a Price/Earnings ratio of 6.99.
Compared to the rest of the industry, the Price/Earnings ratio of INVA indicates a rather cheap valuation: INVA is cheaper than 94.03% of the companies listed in the same industry.
INVA is valuated cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.22 indicates a rather expensive valuation of INVA.
INVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. INVA is cheaper than 80.10% of the companies in the same industry.
INVA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.99
Fwd PE 18.22

4.2 Price Multiples

INVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INVA is cheaper than 91.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INVA is valued cheaply inside the industry as 94.03% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.85
EV/EBITDA 8.16

4.3 Compensation for Growth

INVA has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as INVA's earnings are expected to decrease with -30.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y-30.92%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

INVA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

INNOVIVA INC

NASDAQ:INVA (3/28/2024, 4:30:02 PM)

After market: 15.24 0 (0%)

15.24

-0.05 (-0.33%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap963.63M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.99
Fwd PE 18.22
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.74
Profitability
Industry RankSector Rank
ROA 14.45%
ROE 26.63%
ROCE
ROIC
ROICexc
ROICexgc
OM 36.65%
PM (TTM) 57.88%
GM 86.24%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 9.03
Quick Ratio 7.96
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.8%
EPS 3Y2.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y-61.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y-2.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y