NASDAQ:PINC: good value for what you're paying.

Last update: Sep 5, 2024

PREMIER INC-CLASS A (NASDAQ:PINC) has caught the attention of our stock screener as a great value stock. NASDAQ:PINC excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

How We Gauge Valuation for NASDAQ:PINC

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PINC, the assigned 7 reflects its valuation:

The Price/Earnings ratio is 8.71, which indicates a very decent valuation of PINC.
97.37% of the companies in the same industry are more expensive than PINC, based on the Price/Earnings ratio.
PINC is valuated cheaply when we compare the Price/Earnings ratio to 30.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, PINC is valued cheaply inside the industry as 90.35% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (21.56), we can say PINC is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, PINC is valued cheaply inside the industry as 90.35% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 90.35% of the companies listed in the same industry.
PINC has a very decent profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:PINC

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PINC scores a 7 out of 10:

With a decent Return On Assets value of 3.52%, PINC is doing good in the industry, outperforming 76.32% of the companies in the same industry.
With a decent Return On Equity value of 6.09%, PINC is doing good in the industry, outperforming 71.93% of the companies in the same industry.
PINC's Return On Invested Capital of 7.13% is fine compared to the rest of the industry. PINC outperforms 74.56% of its industry peers.
The last Return On Invested Capital (7.13%) for PINC is above the 3 year average (6.96%), which is a sign of increasing profitability.
The Profit Margin of PINC (8.88%) is better than 93.86% of its industry peers.
PINC's Operating Margin of 19.91% is amongst the best of the industry. PINC outperforms 99.12% of its industry peers.
The Gross Margin of PINC (65.96%) is better than 88.60% of its industry peers.

Deciphering NASDAQ:PINC's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PINC has received a 5 out of 10:

The Debt to FCF ratio of PINC is 3.50, which is a good value as it means it would take PINC, 3.50 years of fcf income to pay off all of its debts.
PINC has a better Debt to FCF ratio (3.50) than 82.46% of its industry peers.
PINC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
PINC has a Debt to Equity ratio of 0.31. This is in the better half of the industry: PINC outperforms 64.04% of its industry peers.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PINC has achieved a 4 out of 10:

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of PINC for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.