IQVIA HOLDINGS INC (IQV) Stock Fundamental Analysis
NYSE:IQV - US46266C1053 - Common Stock
190.69 USD
+6.82 (+3.71%)
190.69 USD
0 (0%)
Overall IQV gets a fundamental rating of 5 out of 10. We evaluated IQV against 55 industry peers in the Life Sciences Tools & Services industry. IQV has an excellent profitability rating, but there are concerns on its financial health. IQV is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years IQV has been profitable.
In the past 5 years IQV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.32%, IQV is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
IQV's Return On Equity of 21.41% is amongst the best of the industry. IQV outperforms 90.91% of its industry peers.
IQV's Return On Invested Capital of 9.40% is amongst the best of the industry. IQV outperforms 85.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IQV is significantly below the industry average of 15.96%.
The last Return On Invested Capital (9.40%) for IQV is above the 3 year average (8.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 21.41% | ||
| ROIC | 9.4% |
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's Profit Margin of 7.88% is fine compared to the rest of the industry. IQV outperforms 69.09% 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 14.41%, IQV is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
In the last couple of years the Operating Margin of IQV has grown nicely.
With a Gross Margin value of 34.25%, IQV is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 | 14.41% | ||
| PM (TTM) | 7.88% | ||
| GM | 34.25% |
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) below the Cost of Capital (WACC), IQV is destroying value.
Compared to 1 year ago, IQV has less shares outstanding
Compared to 5 years ago, IQV has less shares outstanding
IQV has a worse debt/assets ratio than last year.
2.2 Solvency
IQV has an Altman-Z score of 1.93. 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 has a Altman-Z score (1.93) which is in line with its industry peers.
The Debt to FCF ratio of IQV is 7.71, which is on the high side as it means it would take IQV, 7.71 years of fcf income to pay off all of its debts.
IQV has a Debt to FCF ratio (7.71) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.45 is on the high side and indicates that IQV has dependencies on debt financing.
IQV has a worse Debt to Equity ratio (2.45) than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.95
WACC9.9%
2.3 Liquidity
IQV has a Current Ratio of 0.84. This is a bad value and indicates that IQV is not financially healthy enough and could expect problems in meeting its short term obligations.
IQV has a worse Current ratio (0.84) than 92.73% of its industry peers.
IQV has a Quick Ratio of 0.84. This is a bad value and indicates that IQV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, IQV is not doing good in the industry: 87.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
IQV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.13%, 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.
The Revenue has been growing slightly by 3.60% in the past 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)9.13%
EPS 3Y7.25%
EPS 5Y11.72%
EPS Q2Q%6.44%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y3.55%
Revenue growth 5Y6.8%
Sales Q2Q%5.32%
3.2 Future
IQV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.16% yearly.
IQV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y7.6%
EPS Next 2Y8.15%
EPS Next 3Y8.81%
EPS Next 5Y10.16%
Revenue Next Year5.14%
Revenue Next 2Y5.09%
Revenue Next 3Y5.36%
Revenue Next 5Y5.6%
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.
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
A Price/Earnings ratio of 16.63 indicates a correct valuation of IQV.
Based on the Price/Earnings ratio, IQV is valued cheaper than 87.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.43, IQV is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.63, which indicates a correct valuation of IQV.
IQV's Price/Forward Earnings ratio is rather cheap when compared to the industry. IQV is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. IQV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
IQV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IQV is cheaper than 89.09% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 87.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 13.46 |
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.
The decent profitability rating of IQV may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)1.42
EPS Next 2Y8.15%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
IQV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
190.69
+6.82 (+3.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.17%
Inst Owner Change6.07%
Ins Owners0.88%
Ins Owner Change0.1%
Market Cap32.42B
Analysts79.31
Price Target221.95 (16.39%)
Short Float %3.39%
Short Ratio2.99
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)2
Avg EPS beat(2)1%
Min EPS beat(2)0.45%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)0.36%
Min EPS beat(4)-0.62%
Max EPS beat(4)1.56%
EPS beat(8)6
Avg EPS beat(8)0.66%
EPS beat(12)9
Avg EPS beat(12)0.84%
EPS beat(16)13
Avg EPS beat(16)1.1%
Revenue beat(2)2
Avg Revenue beat(2)0.45%
Min Revenue beat(2)0.4%
Max Revenue beat(2)0.5%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.14%
Revenue beat(12)4
Avg Revenue beat(12)-0.19%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)15.06%
PT rev (3m)14.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.42%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.63 | ||
| P/S | 2.06 | ||
| P/FCF | 16.13 | ||
| P/OCF | 12.39 | ||
| P/B | 5.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.46 |
EPS(TTM)11.47
EY6.01%
EPS(NY)13.03
Fwd EY6.83%
FCF(TTM)11.82
FCFY6.2%
OCF(TTM)15.39
OCFY8.07%
SpS92.35
BVpS33.99
TBVpS-84.88
PEG (NY)2.19
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 21.41% | ||
| ROCE | 10.75% | ||
| ROIC | 9.4% | ||
| ROICexc | 10.5% | ||
| ROICexgc | N/A | ||
| OM | 14.41% | ||
| PM (TTM) | 7.88% | ||
| GM | 34.25% | ||
| FCFM | 12.8% |
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-Score4
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 54.1% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.31% | ||
| Profit Quality | 162.49% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.93 |
F-Score4
WACC9.9%
ROIC/WACC0.95
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)9.13%
EPS 3Y7.25%
EPS 5Y11.72%
EPS Q2Q%6.44%
EPS Next Y7.6%
EPS Next 2Y8.15%
EPS Next 3Y8.81%
EPS Next 5Y10.16%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y3.55%
Revenue growth 5Y6.8%
Sales Q2Q%5.32%
Revenue Next Year5.14%
Revenue Next 2Y5.09%
Revenue Next 3Y5.36%
Revenue Next 5Y5.6%
EBIT growth 1Y7.86%
EBIT growth 3Y17.1%
EBIT growth 5Y21.64%
EBIT Next Year21.21%
EBIT Next 3Y11.05%
EBIT Next 5Y9.36%
FCF growth 1Y27.05%
FCF growth 3Y-2.8%
FCF growth 5Y20.42%
OCF growth 1Y16.73%
OCF growth 3Y-2.63%
OCF growth 5Y13.9%