NASDAQ:ICLR is an undervalued gem with solid fundamentals.

Discover ICON PLC (NASDAQ:ICLR), an undervalued stock highlighted by our stock screener. NASDAQ:ICLR showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Insights: NASDAQ:ICLR

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:

• 100.00% of the companies in the same industry are more expensive than ICLR, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.58. ICLR is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio, ICLR is valued cheaper than 98.25% of the companies in the same industry.
• ICLR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, ICLR is valued cheaply inside the industry as 96.49% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ICLR is valued cheaper than 98.25% of the companies in the same industry.
• ICLR has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NASDAQ:ICLR's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ICLR was assigned a score of 6 for profitability:

• ICLR has a Return On Assets of 4.35%. This is in the better half of the industry: ICLR outperforms 78.95% of its industry peers.
• ICLR has a Return On Equity of 7.65%. This is amongst the best in the industry. ICLR outperforms 80.70% of its industry peers.
• ICLR has a Return On Invested Capital of 6.28%. This is in the better half of the industry: ICLR outperforms 78.95% of its industry peers.
• The last Return On Invested Capital (6.28%) for ICLR is above the 3 year average (4.59%), which is a sign of increasing profitability.
• 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.
• The Operating Margin of ICLR (13.77%) is better than 75.44% of its industry peers.

Unpacking NASDAQ:ICLR's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ICLR, the assigned 5 for health provides valuable insights:

• ICLR has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as ICLR would need 2.79 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.79, ICLR belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• A Debt/Equity ratio of 0.35 indicates that ICLR is not too dependend on debt financing.

Understanding NASDAQ:ICLR's Growth Score

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ICLR has received a 6 out of 10:

• The Earnings Per Share has grown by an nice 12.78% over the past year.
• Measured over the past years, ICLR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.96% on average per year.
• 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 10.15% yearly.

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

For an up to date full fundamental analysis you can check the fundamental report of ICLR

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.