IQVIA HOLDINGS INC (IQV) Stock Fundamental Analysis
NYSE:IQV - New York Stock Exchange, Inc. - US46266C1053 - Common Stock - Currency: USD
Taking everything into account, IQV scores 5 out of 10 in our fundamental rating. IQV was compared to 55 industry peers in the Life Sciences Tools & Services industry. IQV scores excellent on profitability, but 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.
IQV had positive earnings in each of the past 5 years.
Each year in the past 5 years IQV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.88%, IQV is doing good in the industry, outperforming 80.00% of the companies in the same industry.
IQV has a better Return On Equity (22.32%) than 92.73% of its industry peers.
IQV has a better Return On Invested Capital (9.88%) than 85.45% of its industry peers.
IQV had an Average Return On Invested Capital over the past 3 years of 8.99%. This is below the industry average of 13.60%.
The 3 year average ROIC (8.99%) for IQV is below the current ROIC(9.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 22.32% | ||
| ROIC | 9.88% |
ROA(3y)4.83%
ROA(5y)3.91%
ROE(3y)21.26%
ROE(5y)16.88%
ROIC(3y)8.99%
ROIC(5y)7.35%
1.3 Margins
IQV has a better Profit Margin (8.61%) than 74.55% of its industry peers.
In the last couple of years the Profit Margin of IQV has grown nicely.
Looking at the Operating Margin, with a value of 14.67%, IQV is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
IQV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.72%, IQV is doing worse than 61.82% of the companies in the same industry.
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 | 14.67% | ||
| PM (TTM) | 8.61% | ||
| GM | 34.72% |
OM growth 3Y13.09%
OM growth 5Y13.9%
PM growth 3Y8.58%
PM growth 5Y38.92%
GM growth 3Y1.42%
GM growth 5Y0.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IQV is creating some value.
The number of shares outstanding for IQV has been reduced compared to 1 year ago.
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
IQV has an Altman-Z score of 1.91. This is not the best score and indicates that IQV is in the grey zone with still only limited risk for bankruptcy at the moment.
IQV's Altman-Z score of 1.91 is in line compared to the rest of the industry. IQV outperforms 47.27% of its industry peers.
The Debt to FCF ratio of IQV is 6.63, which is on the high side as it means it would take IQV, 6.63 years of fcf income to pay off all of its debts.
IQV has a Debt to FCF ratio (6.63) which is in line with its industry peers.
IQV has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
IQV has a Debt to Equity ratio of 2.19. This is amonst the worse of the industry: IQV underperforms 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.02
WACC9.65%
2.3 Liquidity
A Current Ratio of 0.82 indicates that IQV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, IQV is doing worse than 89.09% of the companies in the same industry.
IQV has a Quick Ratio of 0.82. This is a bad value and indicates that IQV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, IQV is doing worse than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
IQV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.71%, which is quite good.
IQV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.72% yearly.
Looking at the last year, IQV shows a small growth in Revenue. The Revenue has grown by 2.84% in the last year.
Measured over the past years, IQV shows a small growth in Revenue. The Revenue has been growing by 6.80% on average per year.
EPS 1Y (TTM)9.71%
EPS 3Y7.25%
EPS 5Y11.72%
EPS Q2Q%6.3%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y3.55%
Revenue growth 5Y6.8%
Sales Q2Q%2.46%
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 10.27% on average per year.
Based on estimates for the next years, IQV will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y7.33%
EPS Next 2Y8.74%
EPS Next 3Y9.45%
EPS Next 5Y10.27%
Revenue Next Year4.54%
Revenue Next 2Y4.87%
Revenue Next 3Y5.1%
Revenue Next 5Y5.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.57, the valuation of IQV can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 94.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, IQV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.50, the valuation of IQV can be described as correct.
92.73% of the companies in the same industry are more expensive than IQV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, IQV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQV is valued cheaper than 94.55% of the companies in the same industry.
92.73% of the companies in the same industry are more expensive than IQV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IQV does not grow enough to justify the current Price/Earnings ratio.
IQV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)1.24
EPS Next 2Y8.74%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
No dividends for IQV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
164.65
+2.04 (+1.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.6%
Inst Owner Change0.55%
Ins Owners0.87%
Ins Owner Change1.32%
Market Cap28.48B
Analysts79.33
Price Target193.72 (17.66%)
Short Float %5.45%
Short Ratio3.78
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)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-0.62%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)0.72%
Min EPS beat(4)-0.62%
Max EPS beat(4)1.9%
EPS beat(8)6
Avg EPS beat(8)0.79%
EPS beat(12)9
Avg EPS beat(12)0.92%
EPS beat(16)13
Avg EPS beat(16)1.17%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)0.5%
Revenue beat(8)2
Avg Revenue beat(8)-0.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.19%
Revenue beat(16)7
Avg Revenue beat(16)0.11%
PT rev (1m)-11.61%
PT rev (3m)-22.93%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.5 | ||
| P/S | 1.84 | ||
| P/FCF | 13.17 | ||
| P/OCF | 10.31 | ||
| P/B | 4.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)11.3
EY6.86%
EPS(NY)13.17
Fwd EY8%
FCF(TTM)12.5
FCFY7.59%
OCF(TTM)15.97
OCFY9.7%
SpS89.58
BVpS34.55
TBVpS-78.34
PEG (NY)1.99
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 22.32% | ||
| ROCE | 11.28% | ||
| ROIC | 9.88% | ||
| ROICexc | 10.89% | ||
| ROICexgc | N/A | ||
| OM | 14.67% | ||
| PM (TTM) | 8.61% | ||
| GM | 34.72% | ||
| FCFM | 13.96% |
ROA(3y)4.83%
ROA(5y)3.91%
ROE(3y)21.26%
ROE(5y)16.88%
ROIC(3y)8.99%
ROIC(5y)7.35%
ROICexc(3y)9.76%
ROICexc(5y)7.99%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.28%
ROCE(5y)8.4%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y16.83%
ROICexc growth 5Y22.05%
OM growth 3Y13.09%
OM growth 5Y13.9%
PM growth 3Y8.58%
PM growth 5Y38.92%
GM growth 3Y1.42%
GM growth 5Y0.42%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 6.63 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 53.72% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.52% | ||
| Profit Quality | 162.14% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.91 |
F-Score6
WACC9.65%
ROIC/WACC1.02
Cap/Depr(3y)57.12%
Cap/Depr(5y)53.97%
Cap/Sales(3y)4.31%
Cap/Sales(5y)4.59%
Profit Quality(3y)136.6%
Profit Quality(5y)225.89%
High Growth Momentum
Growth
EPS 1Y (TTM)9.71%
EPS 3Y7.25%
EPS 5Y11.72%
EPS Q2Q%6.3%
EPS Next Y7.33%
EPS Next 2Y8.74%
EPS Next 3Y9.45%
EPS Next 5Y10.27%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y3.55%
Revenue growth 5Y6.8%
Sales Q2Q%2.46%
Revenue Next Year4.54%
Revenue Next 2Y4.87%
Revenue Next 3Y5.1%
Revenue Next 5Y5.76%
EBIT growth 1Y8.55%
EBIT growth 3Y17.1%
EBIT growth 5Y21.64%
EBIT Next Year21.53%
EBIT Next 3Y11.4%
EBIT Next 5Y9.88%
FCF growth 1Y43.44%
FCF growth 3Y-2.8%
FCF growth 5Y20.42%
OCF growth 1Y27.34%
OCF growth 3Y-2.63%
OCF growth 5Y13.9%