We assign a fundamental rating of 7 out of 10 to PGNY. PGNY was compared to 102 industry peers in the Health Care Providers & Services industry. PGNY gets an excellent profitability rating and is at the same time showing great financial health properties. PGNY is not overvalued while it is showing excellent growth. This is an interesting combination. This makes PGNY very considerable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PGNY had positive earnings in the past year.
PGNY had a positive operating cash flow in the past year.
Each year in the past 5 years PGNY has been profitable.
In the past 5 years PGNY always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 7.11%, PGNY belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
The Return On Equity of PGNY (10.10%) is better than 71.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.24%, PGNY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PGNY is in line with the industry average of 9.16%.
The last Return On Invested Capital (11.24%) for PGNY is above the 3 year average (8.25%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	7.11%
ROE	10.1%
ROIC	11.24%

ROA(3y)7.58%

ROA(5y)11.89%

ROE(3y)10.72%

ROE(5y)17.23%

ROIC(3y)8.25%

ROIC(5y)7.66%

1.3 Margins

Looking at the Profit Margin, with a value of 4.46%, PGNY is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
In the last couple of years the Profit Margin of PGNY has declined.
With a decent Operating Margin value of 6.77%, PGNY is doing good in the industry, outperforming 70.59% of the companies in the same industry.
PGNY's Operating Margin has improved in the last couple of years.
PGNY has a Gross Margin of 22.94%. This is comparable to the rest of the industry: PGNY outperforms 48.04% of its industry peers.
PGNY's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	6.77%
PM (TTM)	4.46%
GM	22.94%

OM growth 3Y-3.61%

OM growth 5Y1.87%

PM growth 3Y-29.25%

PM growth 5YN/A

GM growth 3Y-1.03%

GM growth 5Y1.85%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PGNY is still creating some value.
Compared to 1 year ago, PGNY has less shares outstanding
The number of shares outstanding for PGNY has been increased compared to 5 years ago.
There is no outstanding debt for PGNY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

PGNY has an Altman-Z score of 8.16. This indicates that PGNY is financially healthy and has little risk of bankruptcy at the moment.
PGNY has a better Altman-Z score (8.16) than 94.12% of its industry peers.
There is no outstanding debt for PGNY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	8.16

ROIC/WACC1.26

WACC8.91%

2.3 Liquidity

A Current Ratio of 2.96 indicates that PGNY has no problem at all paying its short term obligations.
PGNY has a Current ratio of 2.96. This is amongst the best in the industry. PGNY outperforms 83.33% of its industry peers.
PGNY has a Quick Ratio of 2.96. This indicates that PGNY is financially healthy and has no problem in meeting its short term obligations.
PGNY has a Quick ratio of 2.96. This is amongst the best in the industry. PGNY outperforms 83.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.96
Quick Ratio	2.96

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PGNY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.62%, which is quite good.
The Earnings Per Share has been decreasing by -4.77% on average over the past years.
Looking at the last year, PGNY shows a quite strong growth in Revenue. The Revenue has grown by 11.41% in the last year.
The Revenue has been growing by 38.42% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)8.62%

EPS 3Y-4.77%

EPS 5YN/A

EPS Q2Q%36.36%

Revenue 1Y (TTM)11.41%

Revenue growth 3Y32.6%

Revenue growth 5Y38.42%

Sales Q2Q%9.32%

3.2 Future

PGNY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.94% yearly.
Based on estimates for the next years, PGNY will show a quite strong growth in Revenue. The Revenue will grow by 8.83% on average per year.

EPS Next Y17.75%

EPS Next 2Y29.28%

EPS Next 3Y26.74%

EPS Next 5Y32.94%

Revenue Next Year11.37%

Revenue Next 2Y10.44%

Revenue Next 3Y10.6%

Revenue Next 5Y8.83%

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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.43, the valuation of PGNY can be described as expensive.
PGNY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.41. PGNY is valued slightly more expensive when compared to this.
PGNY is valuated quite expensively with a Price/Forward Earnings ratio of 25.41.
PGNY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, PGNY is valued at the same level.

		Industry Rank	Sector Rank
PE	38.43
Fwd PE	25.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PGNY is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PGNY indicates a rather cheap valuation: PGNY is cheaper than 84.31% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	10.79
EV/EBITDA	16.63

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PGNY does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PGNY may justify a higher PE ratio.
PGNY's earnings are expected to grow with 26.74% in the coming years. This may justify a more expensive valuation.