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 103 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.
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.
Each year in the past 5 years PINC has been profitable.
In the past 5 years PINC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.03%, PINC is in line with its industry, outperforming 55.34% of the companies in the same industry.
PINC's Return On Equity of 4.10% is in line compared to the rest of the industry. PINC outperforms 58.25% of its industry peers.
The Return On Invested Capital of PINC (6.19%) is better than 65.05% of its industry peers.
PINC had an Average Return On Invested Capital over the past 3 years of 6.96%. This is below the industry average of 9.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.1% | ||
| ROIC | 6.19% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
1.3 Margins
Looking at the Profit Margin, with a value of 5.68%, PINC belongs to the top of the industry, outperforming 81.55% of the companies in the same industry.
PINC's Profit Margin has declined in the last couple of years.
PINC has a better Operating Margin (17.45%) than 95.15% of its industry peers.
In the last couple of years the Operating Margin of PINC has declined.
PINC has a better Gross Margin (70.96%) than 87.38% of its industry peers.
PINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.45% | ||
| 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
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.
Compared to 5 years ago, PINC has less shares outstanding
Compared to 1 year ago, PINC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that PINC is in the distress zone and has some risk of bankruptcy.
PINC's Altman-Z score of 0.91 is on the low side compared to the rest of the industry. PINC is outperformed by 70.87% 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.
PINC has a Debt to FCF ratio of 2.87. This is in the better half of the industry: PINC outperforms 78.64% of its industry peers.
PINC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.40, PINC is doing good in the industry, outperforming 61.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.75
WACC8.23%
2.3 Liquidity
A Current Ratio of 0.65 indicates that PINC may have some problems paying its short term obligations.
The Current ratio of PINC (0.65) is worse than 87.38% of its industry peers.
PINC has a Quick 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.
PINC has a Quick ratio of 0.65. This is amonst the worse of the industry: PINC underperforms 81.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.74%.
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.
Looking at the last year, PINC shows a very negative growth in Revenue. The Revenue has decreased by -17.69% in the last year.
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 -5.13% on average per year.
Based on estimates for the next years, PINC will show a decrease in Revenue. The Revenue will decrease by -5.94% on average per year.
EPS Next Y-41.07%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
EPS Next 5Y-5.13%
Revenue Next Year-24.21%
Revenue Next 2Y-13.65%
Revenue Next 3Y-8.71%
Revenue Next 5Y-5.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.20, which indicates a correct valuation of PINC.
PINC's Price/Earnings ratio is rather cheap when compared to the industry. PINC is cheaper than 83.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. PINC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 15.09, the valuation of PINC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PINC indicates a somewhat cheap valuation: PINC is cheaper than 72.82% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (36.80), we can say PINC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 15.09 |
4.2 Price Multiples
PINC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PINC is cheaper than 71.84% 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 93.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
The decent profitability rating of PINC may justify a higher PE ratio.
A cheap valuation may be justified as PINC's earnings are expected to decrease with -14.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, PINC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, PINC pays a better dividend. On top of this PINC pays more dividend than 97.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PINC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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
130.89% of the earnings are spent on dividend by PINC. This is not a sustainable payout ratio.
DP130.89%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
21.48
-0.04 (-0.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.05%
Inst Owner Change-0.8%
Ins Owners0.86%
Ins Owner Change-1.28%
Market Cap1.77B
Analysts51.43
Price Target22.73 (5.82%)
Short Float %13.74%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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)14.29%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)0.94%
EPS NY rev (3m)6.98%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 15.09 | ||
| P/S | 1.61 | ||
| P/FCF | 5.44 | ||
| P/OCF | 4.42 | ||
| P/B | 1.16 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)1.76
EY8.19%
EPS(NY)1.42
Fwd EY6.63%
FCF(TTM)3.95
FCFY18.39%
OCF(TTM)4.85
OCFY22.6%
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 | 8.76% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 13.42% | ||
| OM | 17.45% | ||
| 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 | 1.95 | ||
| Cap/Depr | 62.83% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.75% | ||
| Profit Quality | 520.36% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.91 |
F-Score5
WACC8.23%
ROIC/WACC0.75
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-41.07%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
EPS Next 5Y-5.13%
Revenue 1Y (TTM)-17.69%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-23.71%
Revenue Next Year-24.21%
Revenue Next 2Y-13.65%
Revenue Next 3Y-8.71%
Revenue Next 5Y-5.94%
EBIT growth 1Y-12.33%
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%