PINC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. While PINC is still in line with the averages on profitability rating, there are concerns on its financial health. PINC is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PINC was profitable.
In the past year PINC had a positive cash flow from operations.
PINC had positive earnings in each of the past 5 years.
PINC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

PINC has a Return On Assets (-1.08%) which is comparable to the rest of the industry.
The Return On Equity of PINC (-2.16%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.53%, PINC is in line with its industry, outperforming 52.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PINC is below the industry average of 9.16%.

		Industry Rank	Sector Rank
ROA	-1.08%
ROE	-2.16%
ROIC	4.53%

ROA(3y)3.12%

ROA(5y)4.94%

ROE(3y)4.97%

ROE(5y)7.69%

ROIC(3y)6.34%

ROIC(5y)6.59%

1.3 Margins

PINC's Profit Margin has declined in the last couple of years.
PINC's Operating Margin of 13.63% is amongst the best of the industry. PINC outperforms 84.16% of its industry peers.
PINC's Operating Margin has declined in the last couple of years.
PINC has a better Gross Margin (73.02%) than 88.12% of its industry peers.
In the last couple of years the Gross Margin of PINC has grown nicely.

		Industry Rank	Sector Rank
OM	13.63%
PM (TTM)	N/A
GM	73.02%

OM growth 3Y-7.48%

OM growth 5Y-11.75%

PM growth 3Y-52.4%

PM growth 5Y-46.59%

GM growth 3Y5.93%

GM growth 5Y1.94%

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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 below the Cost of Capital (WACC), so PINC is destroying value.
Compared to 1 year ago, PINC has less shares outstanding
The number of shares outstanding for PINC has been reduced compared to 5 years ago.
The debt/assets ratio for PINC is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.96, we must say that PINC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PINC (0.96) is worse than 73.27% of its industry peers.
PINC has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as PINC would need 3.43 years to pay back of all of its debts.
The Debt to FCF ratio of PINC (3.43) is better than 73.27% of its industry peers.
PINC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.38, PINC is doing good in the industry, outperforming 66.34% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	3.43
Altman-Z	0.96

ROIC/WACC0.57

WACC7.9%

2.3 Liquidity

A Current Ratio of 0.62 indicates that PINC may have some problems paying its short term obligations.
PINC has a worse Current ratio (0.62) than 85.15% of its industry peers.
A Quick Ratio of 0.62 indicates that PINC may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, PINC is not doing good in the industry: 81.19% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.62

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for PINC have decreased strongly by -30.73% in the last year.
The earnings per share for PINC have been decreasing by -10.94% on average. This is quite bad
The Revenue for PINC has decreased by -21.26% in the past year. This is quite bad
Measured over the past years, PINC shows a decrease in Revenue. The Revenue has been decreasing by -4.87% on average per year.

EPS 1Y (TTM)-30.73%

EPS 3Y-15.66%

EPS 5Y-10.94%

EPS Q2Q%-5.88%

Revenue 1Y (TTM)-21.26%

Revenue growth 3Y-10.93%

Revenue growth 5Y-4.87%

Sales Q2Q%-0.12%

3.2 Future

The Earnings Per Share is expected to grow by 5.24% on average over the next years.
PINC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.

EPS Next Y-4.67%

EPS Next 2Y4.08%

EPS Next 3Y5.07%

EPS Next 5Y5.24%

Revenue Next Year-1.76%

Revenue Next 2Y1.81%

Revenue Next 3Y3.1%

Revenue Next 5Y1.21%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.72, PINC is valued on the expensive side.
Based on the Price/Earnings ratio, PINC is valued a bit cheaper than the industry average as 75.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.32, PINC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.05, PINC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than 67.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. PINC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	18.72
Fwd PE	17.05

4.2 Price Multiples

PINC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PINC is cheaper than 63.37% of the companies in the same industry.
PINC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PINC is cheaper than 86.14% of the companies in the same industry.