IQVIA HOLDINGS INC (IQV) Stock Fundamental Analysis
USA - NYSE:IQV - US46266C1053 - Common Stock
204.34 USD
+0.55 (+0.27%)
181.265 USD
-23.08 (-11.29%)
Taking everything into account, IQV scores 5 out of 10 in our fundamental rating. IQV was compared to 56 industry peers in the Life Sciences Tools & Services industry. While IQV has a great profitability rating, there are quite some concerns on its financial health. IQV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year IQV was profitable.
IQV had a positive operating cash flow in the past year.
In the past 5 years IQV has always been profitable.
In the past 5 years IQV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IQV (4.32%) is better than 75.00% of its industry peers.
The Return On Equity of IQV (21.41%) is better than 91.07% of its industry peers.
The Return On Invested Capital of IQV (9.40%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IQV is significantly below the industry average of 14.87%.
The 3 year average ROIC (8.99%) for IQV is below the current ROIC(9.40%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 7.88%, IQV is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
IQV's Profit Margin has improved in the last couple of years.
IQV's Operating Margin of 14.41% is fine compared to the rest of the industry. IQV outperforms 76.79% of its industry peers.
In the last couple of years the Operating Margin of IQV has grown nicely.
IQV's Gross Margin of 34.25% is on the low side compared to the rest of the industry. IQV is outperformed by 64.29% 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 | 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
IQV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, IQV has a worse debt to assets ratio.
2.2 Solvency
IQV has an Altman-Z score of 1.99. 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.
Looking at the Altman-Z score, with a value of 1.99, IQV is in line with its industry, outperforming 48.21% of the companies in the same industry.
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.
The Debt to FCF ratio of IQV (7.71) is better than 60.71% of its industry peers.
IQV has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
IQV has a Debt to Equity ratio of 2.45. This is amonst the worse of the industry: IQV underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.93
WACC10.09%
2.3 Liquidity
A Current Ratio of 0.84 indicates that IQV may have some problems paying its short term obligations.
With a Current ratio value of 0.84, IQV is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
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.
IQV's Quick ratio of 0.84 is on the low side compared to the rest of the industry. IQV is outperformed by 85.71% of its industry peers.
| 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.
Measured over the past years, IQV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.72% on average per year.
IQV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
The Revenue has been growing slightly by 6.80% on average over the past years.
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
Based on estimates for the next years, IQV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.16% on average per year.
IQV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y7.56%
EPS Next 2Y8.11%
EPS Next 3Y8.74%
EPS Next 5Y10.16%
Revenue Next Year5.14%
Revenue Next 2Y5.06%
Revenue Next 3Y5.29%
Revenue Next 5Y5.6%
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.
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
A Price/Earnings ratio of 17.82 indicates a rather expensive valuation of IQV.
Compared to the rest of the industry, the Price/Earnings ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 89.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IQV to the average of the S&P500 Index (27.86), we can say IQV is valued slightly cheaper.
IQV is valuated correctly with a Price/Forward Earnings ratio of 15.69.
91.07% of the companies in the same industry are more expensive than IQV, based on the Price/Forward Earnings ratio.
IQV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IQV is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.28 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IQV may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.52
EPS Next 2Y8.11%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
No dividends for IQV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
204.34
+0.55 (+0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.98%
Inst Owner Change6.07%
Ins Owners0.86%
Ins Owner Change0.1%
Market Cap34.74B
Analysts79.31
Price Target220.13 (7.73%)
Short Float %2.78%
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)-0.82%
PT rev (3m)13.63%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 15.69 | ||
| P/S | 2.21 | ||
| P/FCF | 17.28 | ||
| P/OCF | 13.27 | ||
| P/B | 6.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)11.47
EY5.61%
EPS(NY)13.02
Fwd EY6.37%
FCF(TTM)11.82
FCFY5.79%
OCF(TTM)15.39
OCFY7.53%
SpS92.35
BVpS33.99
TBVpS-84.88
PEG (NY)2.36
PEG (5Y)1.52
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 | 1.99 |
F-Score4
WACC10.09%
ROIC/WACC0.93
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 Y7.56%
EPS Next 2Y8.11%
EPS Next 3Y8.74%
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 2Y5.06%
Revenue Next 3Y5.29%
Revenue Next 5Y5.6%
EBIT growth 1Y7.86%
EBIT growth 3Y17.1%
EBIT growth 5Y21.64%
EBIT Next Year21.15%
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%