PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
USA - NASDAQ:PINC - US74051N1028 - Common Stock
28.12 USD
-0.01 (-0.04%)
28.11 USD
-0.01 (-0.04%)
We assign a fundamental rating of 4 out of 10 to PINC. PINC was compared to 101 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years PINC has always been profitable.
PINC 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 0.65%, PINC is in line with its industry, outperforming 49.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.32%, PINC is in line with its industry, outperforming 54.46% of the companies in the same industry.
The Return On Invested Capital of PINC (4.84%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PINC is below the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.32% | ||
| ROIC | 4.84% |
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
With a decent Profit Margin value of 2.00%, PINC is doing good in the industry, outperforming 63.37% of the companies in the same industry.
PINC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.38%, PINC belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
In the last couple of years the Operating Margin of PINC has declined.
PINC's Gross Margin of 73.41% is amongst the best of the industry. PINC outperforms 88.12% of its industry peers.
PINC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.38% | ||
| PM (TTM) | 2% | ||
| GM | 73.41% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PINC is destroying value.
The number of shares outstanding for PINC has been reduced compared to 1 year ago.
Compared to 5 years ago, PINC has less shares outstanding
PINC has a worse debt/assets ratio than last year.
2.2 Solvency
PINC has an Altman-Z score of 1.03. This is a bad value and indicates that PINC is not financially healthy and even has some risk of bankruptcy.
PINC has a worse Altman-Z score (1.03) than 71.29% of its industry peers.
PINC has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as PINC would need 2.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.89, PINC is in the better half of the industry, outperforming 78.22% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that PINC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, PINC is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.65
WACC7.5%
2.3 Liquidity
PINC has a Current Ratio of 0.64. 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 0.64, PINC is not doing good in the industry: 87.13% of the companies in the same industry are doing better.
PINC has a Quick Ratio of 0.64. This is a bad value and indicates that PINC is not financially healthy enough and could expect problems in meeting its short term obligations.
PINC has a Quick ratio of 0.64. This is amonst the worse of the industry: PINC underperforms 83.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for PINC have decreased strongly by -35.71% in the last year.
Measured over the past years, PINC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.94% on average per year.
PINC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.79%.
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)-35.71%
EPS 3Y-15.66%
EPS 5Y-10.94%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-24.79%
Revenue growth 3Y-10.93%
Revenue growth 5Y-4.87%
Sales Q2Q%-24.96%
3.2 Future
Based on estimates for the next years, PINC will show a small growth in Earnings Per Share. The EPS will grow by 5.24% on average per year.
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-8.56%
EPS Next 2Y4.77%
EPS Next 3Y3.85%
EPS Next 5Y5.24%
Revenue Next Year-1.31%
Revenue Next 2Y0.89%
Revenue Next 3Y1.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.38, the valuation of PINC can be described as rather expensive.
74.26% of the companies in the same industry are more expensive than PINC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PINC to the average of the S&P500 Index (26.89), we can say PINC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.10, the valuation of PINC can be described as rather expensive.
64.36% of the companies in the same industry are more expensive than PINC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, PINC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PINC is valued a bit cheaper than the industry average as 64.36% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 91.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
The decent profitability rating of PINC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y3.85%
5. Dividend
5.1 Amount
PINC has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
PINC's Dividend Yield is rather good when compared to the industry average which is at 2.42. PINC pays more dividend than 96.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PINC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
PINC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of PINC decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
382.09% of the earnings are spent on dividend by PINC. This is not a sustainable payout ratio.
DP382.09%
EPS Next 2Y4.77%
EPS Next 3Y3.85%
28.12
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.33%
Inst Owner Change-0.56%
Ins Owners1.18%
Ins Owner Change8.61%
Market Cap2.32B
Revenue(TTM)1.01B
Net Income(TTM)20.27M
Analysts51.67
Price Target27.54 (-2.06%)
Short Float %10.83%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP382.09%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.01%
Min EPS beat(2)32.64%
Max EPS beat(2)49.39%
EPS beat(4)3
Avg EPS beat(4)26.12%
Min EPS beat(4)-10.51%
Max EPS beat(4)49.39%
EPS beat(8)7
Avg EPS beat(8)20.15%
EPS beat(12)9
Avg EPS beat(12)12.83%
EPS beat(16)12
Avg EPS beat(16)10.38%
Revenue beat(2)2
Avg Revenue beat(2)5.31%
Min Revenue beat(2)4.04%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)2.16%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)6.57%
Revenue beat(8)5
Avg Revenue beat(8)2.18%
Revenue beat(12)6
Avg Revenue beat(12)-0.43%
Revenue beat(16)10
Avg Revenue beat(16)0.32%
PT rev (1m)5%
PT rev (3m)21.15%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-24.54%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 20.1 | ||
| P/S | 2.3 | ||
| P/FCF | 7.29 | ||
| P/OCF | 5.79 | ||
| P/B | 1.52 | ||
| P/tB | 6.09 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)1.53
EY5.44%
EPS(NY)1.4
Fwd EY4.98%
FCF(TTM)3.86
FCFY13.71%
OCF(TTM)4.86
OCFY17.27%
SpS12.25
BVpS18.51
TBVpS4.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number25.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.32% | ||
| ROCE | 6.66% | ||
| ROIC | 4.84% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 11.09% | ||
| OM | 14.38% | ||
| PM (TTM) | 2% | ||
| GM | 73.41% | ||
| FCFM | 31.48% |
ROA(3y)3.12%
ROA(5y)4.94%
ROE(3y)4.97%
ROE(5y)7.69%
ROIC(3y)6.34%
ROIC(5y)6.59%
ROICexc(3y)6.61%
ROICexc(5y)6.86%
ROICexgc(3y)14.53%
ROICexgc(5y)14.89%
ROCE(3y)8.73%
ROCE(5y)9.06%
ROICexgc growth 3Y-12%
ROICexgc growth 5Y-15.35%
ROICexc growth 3Y-12.48%
ROICexc growth 5Y-14.13%
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%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 70.26% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 152.5% | ||
| Profit Quality | 1572.75% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.03 |
F-Score5
WACC7.5%
ROIC/WACC0.65
Cap/Depr(3y)64.9%
Cap/Depr(5y)67.16%
Cap/Sales(3y)7.16%
Cap/Sales(5y)6.55%
Profit Quality(3y)653.29%
Profit Quality(5y)443.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-35.71%
EPS 3Y-15.66%
EPS 5Y-10.94%
EPS Q2Q%-33.33%
EPS Next Y-8.56%
EPS Next 2Y4.77%
EPS Next 3Y3.85%
EPS Next 5Y5.24%
Revenue 1Y (TTM)-24.79%
Revenue growth 3Y-10.93%
Revenue growth 5Y-4.87%
Sales Q2Q%-24.96%
Revenue Next Year-1.31%
Revenue Next 2Y0.89%
Revenue Next 3Y1.88%
Revenue Next 5Y1.21%
EBIT growth 1Y-45.69%
EBIT growth 3Y-17.59%
EBIT growth 5Y-16.04%
EBIT Next Year37.91%
EBIT Next 3Y14.87%
EBIT Next 5YN/A
FCF growth 1Y48.01%
FCF growth 3Y-3.69%
FCF growth 5Y4.56%
OCF growth 1Y35.36%
OCF growth 3Y-3.32%
OCF growth 5Y2.81%
PREMIER INC-CLASS A / PINC FAQ
Can you provide the ChartMill fundamental rating for PREMIER INC-CLASS A?
ChartMill assigns a fundamental rating of 4 / 10 to PINC.
Can you provide the valuation status for PREMIER INC-CLASS A?
ChartMill assigns a valuation rating of 5 / 10 to PREMIER INC-CLASS A (PINC). This can be considered as Fairly Valued.
Can you provide the profitability details for PREMIER INC-CLASS A?
PREMIER INC-CLASS A (PINC) has a profitability rating of 6 / 10.
What is the valuation of PREMIER INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PREMIER INC-CLASS A (PINC) is 18.38 and the Price/Book (PB) ratio is 1.52.
Can you provide the dividend sustainability for PINC stock?
The dividend rating of PREMIER INC-CLASS A (PINC) is 3 / 10 and the dividend payout ratio is 382.09%.