PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
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. PINC has a medium profitability rating, but doesn't score so well on its financial health evaluation. PINC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years PINC has been profitable.
Each year in the past 5 years PINC had a positive operating cash flow.
1.2 Ratios
PINC's Return On Assets of 2.03% is in line compared to the rest of the industry. PINC outperforms 56.86% of its industry peers.
PINC's Return On Equity of 4.10% is in line compared to the rest of the industry. PINC outperforms 57.84% of its industry peers.
The Return On Invested Capital of PINC (1.88%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PINC is below the industry average of 9.60%.
The 3 year average ROIC (6.96%) for PINC is well above the current ROIC(1.88%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.1% | ||
| ROIC | 1.88% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
1.3 Margins
Looking at the Profit Margin, with a value of 5.68%, PINC belongs to the top of the industry, outperforming 81.37% of the companies in the same industry.
PINC's Profit Margin has declined in the last couple of years.
The Operating Margin of PINC (5.30%) is better than 62.75% of its industry peers.
PINC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 70.96%, PINC belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
PINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| PM (TTM) | 5.68% | ||
| GM | 70.96% |
OM growth 3Y10.08%
OM growth 5Y-8.03%
PM growth 3Y-16.32%
PM growth 5YN/A
GM growth 3Y10.68%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PINC is destroying value.
The number of shares outstanding for PINC has been reduced compared to 1 year ago.
PINC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PINC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that PINC is in the distress zone and has some risk of bankruptcy.
PINC has a worse Altman-Z score (0.82) than 72.55% of its industry peers.
The Debt to FCF ratio of PINC is 2.87, which is a good value as it means it would take PINC, 2.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.87, PINC is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that PINC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.40, PINC is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.25
WACC7.45%
2.3 Liquidity
PINC has a Current Ratio of 0.65. This is a bad value and indicates that PINC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.65, PINC is not doing good in the industry: 87.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that PINC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, PINC is doing worse than 81.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for PINC have decreased strongly by -25.74% in the last year.
Measured over the past years, PINC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
PINC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.69%.
The Revenue has been growing slightly by 2.03% on average over the past years.
EPS 1Y (TTM)-25.74%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)-17.69%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-23.71%
3.2 Future
Based on estimates for the next years, PINC will show a decrease in Earnings Per Share. The EPS will decrease by -7.07% on average per year.
PINC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.81% yearly.
EPS Next Y-42.89%
EPS Next 2Y-22.17%
EPS Next 3Y-13.22%
EPS Next 5Y-7.07%
Revenue Next Year-24.51%
Revenue Next 2Y-13.38%
Revenue Next 3Y-8.35%
Revenue Next 5Y-5.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.10, the valuation of PINC can be described as correct.
PINC's Price/Earnings ratio is rather cheap when compared to the industry. PINC is cheaper than 83.33% of the companies in the same industry.
PINC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.00, PINC is valued correctly.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (21.77), we can say PINC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PINC.
93.14% of the companies in the same industry are more expensive than PINC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.84 | ||
| EV/EBITDA | 15.62 |
4.3 Compensation for Growth
PINC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PINC's earnings are expected to decrease with -13.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.17%
EPS Next 3Y-13.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, PINC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, PINC pays a better dividend. On top of this PINC pays more dividend than 97.06% of the companies listed in the same industry.
PINC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
5.2 History
PINC has been paying a dividend for over 5 years, so it has already some track record.
PINC has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
PINC pays out 130.89% of its income as dividend. This is not a sustainable payout ratio.
DP130.89%
EPS Next 2Y-22.17%
EPS Next 3Y-13.22%
23.06
-0.14 (-0.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.95%
Inst Owner Change0.63%
Ins Owners0.84%
Ins Owner Change0.5%
Market Cap1.90B
Analysts51.43
Price Target19.89 (-13.75%)
Short Float %15.92%
Short Ratio9.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP130.89%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.44%
Min EPS beat(2)-10.51%
Max EPS beat(2)49.39%
EPS beat(4)3
Avg EPS beat(4)27.45%
Min EPS beat(4)-10.51%
Max EPS beat(4)49.39%
EPS beat(8)7
Avg EPS beat(8)16.28%
EPS beat(12)9
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)8.3%
Revenue beat(2)1
Avg Revenue beat(2)1.71%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)3.56%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)9.64%
Revenue beat(8)4
Avg Revenue beat(8)0.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.75%
Revenue beat(16)10
Avg Revenue beat(16)0.4%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-7.49%
EPS NQ rev (3m)-8.39%
EPS NY rev (1m)3.68%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 16 | ||
| P/S | 1.73 | ||
| P/FCF | 5.84 | ||
| P/OCF | 4.75 | ||
| P/B | 1.25 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 15.62 |
EPS(TTM)1.76
EY7.63%
EPS(NY)1.44
Fwd EY6.25%
FCF(TTM)3.95
FCFY17.13%
OCF(TTM)4.85
OCFY21.05%
SpS13.36
BVpS18.5
TBVpS5.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.1% | ||
| ROCE | 2.66% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.94% | ||
| ROICexgc | 4.07% | ||
| OM | 5.3% | ||
| PM (TTM) | 5.68% | ||
| GM | 70.96% | ||
| FCFM | 29.57% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
ROICexc(3y)7.24%
ROICexc(5y)7.79%
ROICexgc(3y)15.82%
ROICexgc(5y)17.29%
ROCE(3y)9.85%
ROCE(5y)10.59%
ROICexcg growth 3Y1.85%
ROICexcg growth 5Y-13.97%
ROICexc growth 3Y3.36%
ROICexc growth 5Y-10.74%
OM growth 3Y10.08%
OM growth 5Y-8.03%
PM growth 3Y-16.32%
PM growth 5YN/A
GM growth 3Y10.68%
GM growth 5Y-1.41%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 62.83% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 226.1% | ||
| Profit Quality | 520.36% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.82 |
F-Score5
WACC7.45%
ROIC/WACC0.25
Cap/Depr(3y)64.05%
Cap/Depr(5y)65.47%
Cap/Sales(3y)6.1%
Cap/Sales(5y)6.14%
Profit Quality(3y)173.77%
Profit Quality(5y)137.21%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.74%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-16.36%
EPS Next Y-42.89%
EPS Next 2Y-22.17%
EPS Next 3Y-13.22%
EPS Next 5Y-7.07%
Revenue 1Y (TTM)-17.69%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-23.71%
Revenue Next Year-24.51%
Revenue Next 2Y-13.38%
Revenue Next 3Y-8.35%
Revenue Next 5Y-5.81%
EBIT growth 1Y-73.38%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-15.35%
EBIT Next 3Y34.71%
EBIT Next 5YN/A
FCF growth 1Y-8.58%
FCF growth 3Y-12.23%
FCF growth 5Y-12.16%
OCF growth 1Y-9.28%
OCF growth 3Y-10.04%
OCF growth 5Y-10.11%