PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
Taking everything into account, PINC scores 4 out of 10 in our fundamental rating. PINC was compared to 102 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of PINC get a neutral evaluation. Nothing too spectacular is happening here. PINC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PINC had positive earnings in the past year.
PINC had a positive operating cash flow in the past year.
In the past 5 years PINC has always been profitable.
Each year in the past 5 years PINC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PINC (-0.15%) is comparable to the rest of the industry.
The Return On Equity of PINC (-0.28%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.52%, PINC is in line with its industry, outperforming 43.14% of the companies in the same industry.
PINC had an Average Return On Invested Capital over the past 3 years of 6.96%. This is below the industry average of 9.13%.
The 3 year average ROIC (6.96%) for PINC is well above the current ROIC(2.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.28% | ||
| ROIC | 2.52% |
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
In the last couple of years the Profit Margin of PINC has declined.
Looking at the Operating Margin, with a value of 7.27%, PINC is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
PINC's Operating Margin has declined in the last couple of years.
PINC has a better Gross Margin (68.38%) than 88.24% of its industry peers.
In the last couple of years the Gross Margin of PINC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | N/A | ||
| GM | 68.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PINC is destroying value.
PINC has less shares outstanding than it did 1 year ago.
PINC has less shares outstanding than it did 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 0.99, we must say that PINC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PINC (0.99) is worse than 70.59% of its industry peers.
The Debt to FCF ratio of PINC is 2.21, which is a good value as it means it would take PINC, 2.21 years of fcf income to pay off all of its debts.
PINC has a Debt to FCF ratio of 2.21. This is amongst the best in the industry. PINC outperforms 81.37% of its industry peers.
PINC has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.36, PINC is doing good in the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.35
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PINC may have some problems paying its short term obligations.
With a Current ratio value of 0.83, PINC is not doing good in the industry: 84.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that PINC may have some problems paying its short term obligations.
The Quick ratio of PINC (0.83) is worse than 77.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for PINC have decreased strongly by -22.92% in the last year.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
PINC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.25%.
PINC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
EPS 1Y (TTM)-22.92%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-55%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-28.22%
3.2 Future
The Earnings Per Share is expected to decrease by -7.07% on average over the next years.
Based on estimates for the next years, PINC will show a decrease in Revenue. The Revenue will decrease by -5.81% on average per year.
EPS Next Y-44.91%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
EPS Next 5Y-7.07%
Revenue Next Year-24.89%
Revenue Next 2Y-13.89%
Revenue Next 3Y-8.8%
Revenue Next 5Y-5.81%
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 decreasing.
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
PINC is valuated reasonably with a Price/Earnings ratio of 11.00.
Compared to the rest of the industry, the Price/Earnings ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 87.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PINC to the average of the S&P500 Index (28.88), we can say PINC is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.64, PINC is valued correctly.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than 79.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, PINC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
62.75% of the companies in the same industry are more expensive than PINC, based on the Enterprise Value to EBITDA ratio.
PINC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PINC is cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.04 | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
A cheap valuation may be justified as PINC's earnings are expected to decrease with -13.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, PINC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.58, PINC pays a better dividend. On top of this PINC pays more dividend than 97.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PINC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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
The earnings of PINC are negative and hence is the payout ratio. PINC will probably not be able to sustain this dividend level.
DP-1820.24%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
20.35
-0.04 (-0.2%)
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 Change-1.04%
Ins Owners0.84%
Ins Owner Change6.03%
Market Cap1.86B
Analysts51.43
Price Target19.89 (-2.26%)
Short Float %16.07%
Short Ratio9.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP-1820.24%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.23%
Min EPS beat(2)-10.51%
Max EPS beat(2)32.96%
EPS beat(4)3
Avg EPS beat(4)18.17%
Min EPS beat(4)-10.51%
Max EPS beat(4)37.97%
EPS beat(8)6
Avg EPS beat(8)9.81%
EPS beat(12)8
Avg EPS beat(12)5.71%
EPS beat(16)11
Avg EPS beat(16)6.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)9.64%
Revenue beat(8)3
Avg Revenue beat(8)-1.27%
Revenue beat(12)6
Avg Revenue beat(12)-1.27%
Revenue beat(16)10
Avg Revenue beat(16)0.17%
PT rev (1m)0%
PT rev (3m)-8.39%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)-2.55%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 14.64 | ||
| P/S | 1.57 | ||
| P/FCF | 5.04 | ||
| P/OCF | 4.22 | ||
| P/B | 1.08 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)1.85
EY9.09%
EPS(NY)1.39
Fwd EY6.83%
FCF(TTM)4.04
FCFY19.83%
OCF(TTM)4.82
OCFY23.71%
SpS12.94
BVpS18.81
TBVpS6.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.28% | ||
| ROCE | 3.56% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.61% | ||
| ROICexgc | 5.03% | ||
| OM | 7.27% | ||
| PM (TTM) | N/A | ||
| GM | 68.38% | ||
| FCFM | 31.19% |
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-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 59% | ||
| Cap/Sales | 6.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 211.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.99 |
F-Score4
WACC7.18%
ROIC/WACC0.35
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)-22.92%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-55%
EPS Next Y-44.91%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
EPS Next 5Y-7.07%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-28.22%
Revenue Next Year-24.89%
Revenue Next 2Y-13.89%
Revenue Next 3Y-8.8%
Revenue Next 5Y-5.81%
EBIT growth 1Y-60.99%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-18.2%
EBIT Next 3Y27.56%
EBIT Next 5YN/A
FCF growth 1Y2.28%
FCF growth 3Y-12.23%
FCF growth 5Y-12.16%
OCF growth 1Y-0.66%
OCF growth 3Y-10.04%
OCF growth 5Y-10.11%