IQVIA HOLDINGS INC (IQV) Stock Fundamental Analysis
NYSE:IQV - New York Stock Exchange, Inc. - US46266C1053 - Common Stock - Currency: USD
IQV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IQV had positive earnings in the past year.
In the past year IQV had a positive cash flow from operations.
Each year in the past 5 years IQV has been profitable.
IQV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.88%, IQV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Return On Equity of IQV (22.32%) is better than 92.73% of its industry peers.
The Return On Invested Capital of IQV (9.88%) is better than 85.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IQV is significantly below the industry average of 15.81%.
The last Return On Invested Capital (9.88%) for IQV is above the 3 year average (8.99%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.61%, IQV is doing good in the industry, outperforming 74.55% of the companies in the same industry.
IQV's Profit Margin has improved in the last couple of years.
IQV has a better Operating Margin (14.67%) than 78.18% of its industry peers.
In the last couple of years the Operating Margin of IQV has grown nicely.
The Gross Margin of IQV (34.72%) is worse than 63.64% 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 | 14.67% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IQV is destroying value.
IQV has less shares outstanding than it did 1 year ago.
IQV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IQV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.08 indicates that IQV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.08, IQV perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
IQV has a debt to FCF ratio of 6.63. This is a slightly negative value and a sign of low solvency as IQV would need 6.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.63, IQV perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
A Debt/Equity ratio of 2.19 is on the high side and indicates that IQV has dependencies on debt financing.
IQV's Debt to Equity ratio of 2.19 is on the low side compared to the rest of the industry. IQV is outperformed by 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 6.63 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.97
WACC10.2%
2.3 Liquidity
A Current Ratio of 0.82 indicates that IQV may have some problems paying its short term obligations.
The Current ratio of IQV (0.82) is worse than 90.91% of its industry peers.
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.
IQV's Quick ratio of 0.82 is on the low side compared to the rest of the industry. IQV is outperformed by 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.13% over the past year.
The Earnings Per Share has been growing by 11.72% on average over the past years. This is quite good.
Looking at the last year, IQV shows a small growth in Revenue. The Revenue has grown by 2.81% in the last year.
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)2.81%
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 10.27% on average per year.
The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y8.52%
EPS Next 3Y9.22%
EPS Next 5Y10.27%
Revenue Next Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y5.02%
Revenue Next 5Y5.76%
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
Based on the Price/Earnings ratio of 17.24, the valuation of IQV can be described as rather expensive.
Based on the Price/Earnings ratio, IQV is valued cheaper than 89.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of IQV to the average of the S&P500 Index (27.93), we can say IQV is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.07, the valuation of IQV can be described as correct.
Based on the Price/Forward Earnings ratio, IQV is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of IQV to the average of the S&P500 Index (37.78), we can say IQV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 90.91% of the companies listed 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 89.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.82 | ||
| EV/EBITDA | 13.81 |
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)2.36
PEG (5Y)1.47
EPS Next 2Y8.52%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
No dividends for IQV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
197.76
-1.41 (-0.71%)
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 Change0.02%
Ins Owners0.87%
Ins Owner Change1.29%
Market Cap34.21B
Analysts79.31
Price Target192.91 (-2.45%)
Short Float %5.28%
Short Ratio3.82
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)-0.42%
PT rev (3m)-13.98%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.34%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.07 | ||
| P/S | 2.21 | ||
| P/FCF | 15.82 | ||
| P/OCF | 12.39 | ||
| P/B | 5.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.81 |
EPS(TTM)11.47
EY5.8%
EPS(NY)13.12
Fwd EY6.63%
FCF(TTM)12.5
FCFY6.32%
OCF(TTM)15.97
OCFY8.07%
SpS89.58
BVpS34.55
TBVpS-78.34
PEG (NY)2.36
PEG (5Y)1.47
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 | 2.08 |
F-Score6
WACC10.2%
ROIC/WACC0.97
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 Y7.3%
EPS Next 2Y8.52%
EPS Next 3Y9.22%
EPS Next 5Y10.27%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y3.55%
Revenue growth 5Y6.8%
Sales Q2Q%5.32%
Revenue Next Year4.47%
Revenue Next 2Y4.73%
Revenue Next 3Y5.02%
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%