PKI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. While PKI has a great profitability rating, there are some minor concerns on its financial health. PKI has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PKI was profitable.
PKI had a positive operating cash flow in the past year.

1.2 Ratios

The Return On Assets of PKI (5.28%) is better than 76.19% of its industry peers.
The Return On Equity of PKI (10.11%) is better than 77.78% of its industry peers.
PKI has a Return On Invested Capital of 6.49%. This is in the better half of the industry: PKI outperforms 73.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKI is significantly above the industry average of 13.29%.
The 3 year average ROIC (52.37%) for PKI is well above the current ROIC(6.49%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	5.28%
ROE	10.11%
ROIC	6.49%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)52.37%

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 16.32%, PKI belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
PKI's Profit Margin has improved in the last couple of years.
PKI has a Operating Margin of 23.43%. This is amongst the best in the industry. PKI outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of PKI has grown nicely.
PKI has a Gross Margin of 58.39%. This is in the better half of the industry: PKI outperforms 76.19% of its industry peers.
PKI's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	23.43%
PM (TTM)	16.32%
GM	58.39%

OM growth 3Y19.66%

OM growth 5Y11.6%

PM growth 3Y29.61%

PM growth 5Y5.8%

GM growth 3Y7.46%

GM growth 5Y4.78%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PKI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PKI has about the same amount of shares outstanding.
The debt/assets ratio for PKI has been reduced compared to a year ago.

2.2 Solvency

PKI has an Altman-Z score of 2.51. This is not the best score and indicates that PKI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PKI (2.51) is comparable to the rest of the industry.
The Debt to FCF ratio of PKI is 7.40, which is on the high side as it means it would take PKI, 7.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.40, PKI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that PKI is somewhat dependend on debt financing.
The Debt to Equity ratio of PKI (0.53) is worse than 68.25% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	7.4
Altman-Z	2.51

ROIC/WACC0.65

WACC10.02%

2.3 Liquidity

PKI has a Current Ratio of 2.13. This indicates that PKI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PKI (2.13) is worse than 68.25% of its industry peers.
PKI has a Quick Ratio of 1.87. This is a normal value and indicates that PKI is financially healthy and should not expect problems in meeting its short term obligations.
PKI has a Quick ratio of 1.87. This is in the lower half of the industry: PKI underperforms 65.08% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.13
Quick Ratio	1.87

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for PKI have decreased strongly by -30.47% in the last year.
Measured over the past years, PKI shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.15% on average per year.
Looking at the last year, PKI shows a decrease in Revenue. The Revenue has decreased by -3.37% in the last year.
Measured over the past years, PKI shows a small growth in Revenue. The Revenue has been growing by 7.97% on average per year.

EPS 1Y (TTM)-30.47%

EPS 3Y24.65%

EPS 5Y22.15%

EPS Q2Q%-33.59%

Revenue 1Y (TTM)-3.37%

Revenue growth 3Y4.72%

Revenue growth 5Y7.97%

Sales Q2Q%-27.89%

3.2 Future

The Earnings Per Share is expected to grow by 6.04% on average over the next years.
PKI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.60% yearly.

EPS Next Y-34.36%

EPS Next 2Y-12.79%

EPS Next 3Y-4.57%

EPS Next 5Y6.04%

Revenue Next Year-31.32%

Revenue Next 2Y-15.11%

Revenue Next 3Y-8.6%

Revenue Next 5YN/A

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.51, PKI is valued correctly.
Based on the Price/Earnings ratio, PKI is valued cheaper than 96.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. PKI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 22.11, PKI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PKI is valued a bit cheaper than 77.78% of the companies in the same industry.
PKI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	14.51
Fwd PE	22.11

4.2 Price Multiples

PKI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PKI is cheaper than 93.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PKI is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	24.52
EV/EBITDA	12.35

4.3 Compensation for Growth

The decent profitability rating of PKI may justify a higher PE ratio.
A cheap valuation may be justified as PKI's earnings are expected to decrease with -4.57% in the coming years.