NASDAQ:ICLR is an undervalued gem with solid fundamentals.

Uncover the hidden value in ICON PLC (NASDAQ:ICLR) as our stock screening tool recommends it as an undervalued choice. NASDAQ:ICLR maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Understanding NASDAQ:ICLR's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:ICLR boasts a 7 out of 10:

• Based on the Price/Earnings ratio, ICLR is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
• ICLR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ICLR indicates a rather cheap valuation: ICLR is cheaper than 98.25% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of ICLR to the average of the S&P500 Index (24.00), we can say ICLR is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ICLR indicates a rather cheap valuation: ICLR is cheaper than 98.25% of the companies listed in the same industry.
• 98.25% of the companies in the same industry are more expensive than ICLR, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of ICLR may justify a higher PE ratio.

Understanding NASDAQ:ICLR's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ICLR has achieved a 6:

• The Return On Assets of ICLR (4.35%) is better than 78.95% of its industry peers.
• With a decent Return On Equity value of 7.65%, ICLR is doing good in the industry, outperforming 78.95% of the companies in the same industry.
• ICLR has a better Return On Invested Capital (6.28%) than 78.95% of its industry peers.
• The 3 year average ROIC (4.59%) for ICLR is below the current ROIC(6.28%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 9.00%, ICLR is in the better half of the industry, outperforming 77.19% of the companies in the same industry.
• ICLR has a Operating Margin of 13.77%. This is in the better half of the industry: ICLR outperforms 75.44% of its industry peers.

Health Assessment of NASDAQ:ICLR

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:ICLR has earned a 5 out of 10:

• The Debt to FCF ratio of ICLR is 2.79, which is a good value as it means it would take ICLR, 2.79 years of fcf income to pay off all of its debts.
• ICLR has a better Debt to FCF ratio (2.79) than 84.21% of its industry peers.
• ICLR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.

How We Gauge Growth for NASDAQ:ICLR

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ICLR was assigned a score of 6 for growth:

• ICLR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.78%, which is quite good.
• ICLR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.96% yearly.
• Measured over the past years, ICLR shows a very strong growth in Revenue. The Revenue has been growing by 25.62% on average per year.
• ICLR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.49% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of ICLR contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.