PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
Overall PINC gets a fundamental rating of 4 out of 10. We evaluated PINC 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
PINC had positive earnings in each of the past 5 years.
In the past 5 years PINC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.03%, PINC perfoms like the industry average, outperforming 55.34% of the companies in the same industry.
The Return On Equity of PINC (4.10%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.19%, PINC is in the better half of the industry, outperforming 64.08% 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 9.62%.
| 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
PINC has a better Profit Margin (5.68%) than 81.55% of its industry peers.
In the last couple of years the Profit Margin of PINC has declined.
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.
With an excellent Gross Margin value of 70.96%, PINC belongs to the best of the industry, outperforming 88.35% of the companies in the same industry.
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 | 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.
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.
Compared to 1 year ago, PINC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that PINC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.92, PINC is doing worse than 69.90% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.87, PINC is doing good in the industry, outperforming 78.64% of the companies in the same industry.
PINC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, PINC is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.82
WACC7.5%
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.
The Current ratio of PINC (0.65) is worse than 86.41% 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.
Looking at the Quick ratio, with a value of 0.65, PINC is doing worse than 80.58% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
The Revenue for PINC has decreased by -17.69% in the past year. This is quite bad
PINC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
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
The Earnings Per Share is expected to decrease by -5.13% 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 -5.94% on average per year.
EPS Next Y-41.62%
EPS Next 2Y-23.03%
EPS Next 3Y-13.22%
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
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
A Price/Earnings ratio of 12.39 indicates a correct valuation of PINC.
Based on the Price/Earnings ratio, PINC is valued cheaply inside the industry as 84.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.86. PINC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 15.47, PINC is valued correctly.
PINC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINC is cheaper than 74.76% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (21.43), we can say PINC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
75.73% of the companies in the same industry are more expensive than PINC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 93.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
The decent profitability rating of PINC may justify a higher PE ratio.
PINC's earnings are expected to decrease with -13.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.03%
EPS Next 3Y-13.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, PINC has a reasonable but not impressive dividend return.
PINC's Dividend Yield is rather good when compared to the industry average which is at 2.43. PINC pays more dividend than 97.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, PINC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
PINC pays out 130.89% of its income as dividend. This is not a sustainable payout ratio.
DP130.89%
EPS Next 2Y-23.03%
EPS Next 3Y-13.22%
21.81
-0.04 (-0.18%)
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 Change0.51%
Ins Owners0.86%
Ins Owner Change-1.37%
Market Cap1.80B
Analysts51.43
Price Target22.73 (4.22%)
Short Float %14.97%
Short Ratio8.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)14.29%
PT rev (3m)14.29%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-8.13%
EPS NY rev (1m)2.23%
EPS NY rev (3m)6.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 15.47 | ||
| P/S | 1.63 | ||
| P/FCF | 5.52 | ||
| P/OCF | 4.49 | ||
| P/B | 1.18 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)1.76
EY8.07%
EPS(NY)1.41
Fwd EY6.47%
FCF(TTM)3.95
FCFY18.11%
OCF(TTM)4.85
OCFY22.26%
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 | 0.92 |
F-Score5
WACC7.5%
ROIC/WACC0.82
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-41.62%
EPS Next 2Y-23.03%
EPS Next 3Y-13.22%
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%