IQVIA HOLDINGS INC (IQV)
US46266C1053 - Common Stock
We assign a fundamental rating of 5 out of 10 to IQV. IQV was compared to 58 industry peers in the Life Sciences Tools & Services industry. While IQV belongs to the best of the industry regarding profitability, there are concerns on its financial health. IQV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
IQV had positive earnings in the past year.
IQV had a positive operating cash flow in the past year.
In the past 5 years IQV has always been profitable.
Each year in the past 5 years IQV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IQV (5.09%) is better than 77.59% of its industry peers.
The Return On Equity of IQV (22.22%) is better than 94.83% of its industry peers.
IQV has a better Return On Invested Capital (8.88%) than 84.48% of its industry peers.
IQV had an Average Return On Invested Capital over the past 3 years of 7.75%. This is below the industry average of 9.89%.
The last Return On Invested Capital (8.88%) for IQV is above the 3 year average (7.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 22.22% | ||
| ROIC | 8.88% |
ROA(3y)4.44%
ROA(5y)3.05%
ROE(3y)19.04%
ROE(5y)12.99%
ROIC(3y)7.75%
ROIC(5y)6.1%
1.3 Margins
The Profit Margin of IQV (9.06%) is better than 79.31% of its industry peers.
In the last couple of years the Profit Margin of IQV has grown nicely.
IQV has a Operating Margin of 13.75%. This is in the better half of the industry: IQV outperforms 75.86% of its industry peers.
IQV's Operating Margin has improved in the last couple of years.
IQV has a worse Gross Margin (34.96%) than 65.52% of its industry peers.
In the last couple of years the Gross Margin of IQV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.75% | ||
| PM (TTM) | 9.06% | ||
| GM | 34.96% |
OM growth 3Y25.9%
OM growth 5Y12.1%
PM growth 3Y54.53%
PM growth 5Y29.51%
GM growth 3Y0.96%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IQV is destroying value.
Compared to 1 year ago, IQV has less shares outstanding
The number of shares outstanding for IQV has been reduced compared to 5 years ago.
The debt/assets ratio for IQV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.20 indicates that IQV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.20, IQV is in line with its industry, outperforming 48.28% of the companies in the same industry.
The Debt to FCF ratio of IQV is 9.12, which is on the high side as it means it would take IQV, 9.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.12, IQV is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
A Debt/Equity ratio of 2.12 is on the high side and indicates that IQV has dependencies on debt financing.
IQV's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. IQV is outperformed by 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 9.12 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.75
WACC11.83%
2.3 Liquidity
IQV has a Current Ratio of 0.86. This is a bad value and indicates that IQV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of IQV (0.86) is worse than 94.83% of its industry peers.
A Quick Ratio of 0.86 indicates that IQV may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, IQV is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.39% over the past year.
The Earnings Per Share has been growing by 12.97% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.98% in the past year.
Measured over the past years, IQV shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
EPS 1Y (TTM)0.39%
EPS 3Y16.72%
EPS 5Y12.97%
EPS growth Q2Q2.16%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y9.67%
Revenue growth 5Y7.55%
Revenue growth Q2Q3.45%
3.2 Future
Based on estimates for the next years, IQV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
Based on estimates for the next years, IQV will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y9.89%
EPS Next 2Y11.42%
EPS Next 3Y12.22%
EPS Next 5Y13.53%
Revenue Next Year4.17%
Revenue Next 2Y5.71%
Revenue Next 3Y6.27%
Revenue Next 5Y7.35%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.88, which indicates a rather expensive current valuation of IQV.
Based on the Price/Earnings ratio, IQV is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
IQV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of IQV.
IQV's Price/Forward Earnings ratio is rather cheap when compared to the industry. IQV is cheaper than 89.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. IQV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQV is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IQV is valued cheaper than 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.03 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IQV has a very decent profitability rating, which may justify a higher PE ratio.
IQV's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)1.69
EPS Next 2Y11.42%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
No dividends for IQV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IQVIA HOLDINGS INC
NYSE:IQV (5/3/2024, 7:04:00 PM)
After market: 223.37 0 (0%)223.37
+1.23 (+0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 19.91 | ||
| 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)2.21
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 22.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.75% | ||
| PM (TTM) | 9.06% | ||
| GM | 34.96% | ||
| 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| 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)0.39%
EPS 3Y16.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.98%
Revenue growth 3Y9.67%
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