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ICON PLC (ICLR) Stock Fundamental Analysis

NASDAQ:ICLR - Nasdaq - IE0005711209 - Common Stock - Currency: USD

185.79  -4.23 (-2.23%)

Fundamental Rating

5

Overall ICLR gets a fundamental rating of 5 out of 10. We evaluated ICLR against 55 industry peers in the Life Sciences Tools & Services industry. Both the profitability and the financial health of ICLR get a neutral evaluation. Nothing too spectacular is happening here. ICLR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year ICLR was profitable.
In the past year ICLR had a positive cash flow from operations.
Each year in the past 5 years ICLR has been profitable.
ICLR had a positive operating cash flow in each of the past 5 years.
ICLR Yearly Net Income VS EBIT VS OCF VS FCFICLR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

ICLR's Return On Assets of 4.69% is fine compared to the rest of the industry. ICLR outperforms 80.00% of its industry peers.
ICLR's Return On Equity of 8.31% is amongst the best of the industry. ICLR outperforms 83.64% of its industry peers.
ICLR's Return On Invested Capital of 6.84% is fine compared to the rest of the industry. ICLR outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ICLR is below the industry average of 10.20%.
The last Return On Invested Capital (6.84%) for ICLR is above the 3 year average (5.80%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.69%
ROE 8.31%
ROIC 6.84%
ROA(3y)3.74%
ROA(5y)4.36%
ROE(3y)6.96%
ROE(5y)8.15%
ROIC(3y)5.8%
ROIC(5y)6.92%
ICLR Yearly ROA, ROE, ROICICLR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 9.56%, ICLR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ICLR has declined.
ICLR has a better Operating Margin (14.73%) than 76.36% of its industry peers.
ICLR's Operating Margin has been stable in the last couple of years.
The Gross Margin of ICLR (29.51%) is worse than 74.55% of its industry peers.
In the last couple of years the Gross Margin of ICLR has remained more or less at the same level.
Industry RankSector Rank
OM 14.73%
PM (TTM) 9.56%
GM 29.51%
OM growth 3Y9.91%
OM growth 5Y-0.95%
PM growth 3Y50.65%
PM growth 5Y-6.44%
GM growth 3Y2.3%
GM growth 5Y-0.09%
ICLR Yearly Profit, Operating, Gross MarginsICLR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ICLR is destroying value.
The number of shares outstanding for ICLR has been reduced compared to 1 year ago.
ICLR has more shares outstanding than it did 5 years ago.
ICLR has a better debt/assets ratio than last year.
ICLR Yearly Shares OutstandingICLR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
ICLR Yearly Total Debt VS Total AssetsICLR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 2.29 indicates that ICLR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ICLR (2.29) is better than 65.45% of its industry peers.
ICLR has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as ICLR would need 3.06 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.06, ICLR is doing good in the industry, outperforming 78.18% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that ICLR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, ICLR is in line with its industry, outperforming 52.73% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 3.06
Altman-Z 2.29
ROIC/WACC0.93
WACC7.37%
ICLR Yearly LT Debt VS Equity VS FCFICLR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 1.26 indicates that ICLR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, ICLR is doing worse than 78.18% of the companies in the same industry.
ICLR has a Quick Ratio of 1.26. This is a normal value and indicates that ICLR is financially healthy and should not expect problems in meeting its short term obligations.
ICLR has a worse Quick ratio (1.26) than 65.45% of its industry peers.
Industry RankSector Rank
Current Ratio 1.26
Quick Ratio 1.26
ICLR Yearly Current Assets VS Current LiabilitesICLR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.63% 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 15.23% on average per year.
Looking at the last year, ICLR shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
ICLR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.17% yearly.
EPS 1Y (TTM)9.63%
EPS 3Y13.76%
EPS 5Y15.23%
EPS Q2Q%-0.87%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y14.75%
Revenue growth 5Y24.17%
Sales Q2Q%-1.22%

3.2 Future

ICLR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y3.36%
EPS Next 2Y8.07%
EPS Next 3Y10.31%
EPS Next 5Y10.73%
Revenue Next Year1.37%
Revenue Next 2Y3.69%
Revenue Next 3Y5.17%
Revenue Next 5Y6.03%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ICLR Yearly Revenue VS EstimatesICLR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B
ICLR Yearly EPS VS EstimatesICLR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.27 indicates a correct valuation of ICLR.
Compared to the rest of the industry, the Price/Earnings ratio of ICLR indicates a rather cheap valuation: ICLR is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ICLR to the average of the S&P500 Index (29.98), we can say ICLR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.84, the valuation of ICLR can be described as correct.
Based on the Price/Forward Earnings ratio, ICLR is valued cheaply inside the industry as 96.36% of the companies are valued more expensively.
ICLR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.27
Fwd PE 12.84
ICLR Price Earnings VS Forward Price EarningsICLR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ICLR is valued cheaper than 98.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ICLR is valued cheaper than 98.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.71
EV/EBITDA 10.88
ICLR Per share dataICLR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ICLR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)0.87
EPS Next 2Y8.07%
EPS Next 3Y10.31%

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0

5. Dividend

5.1 Amount

ICLR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ICON PLC

NASDAQ:ICLR (3/3/2025, 2:37:06 PM)

185.79

-4.23 (-2.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)01-14 2025-01-14/bmo
Earnings (Next)04-22 2025-04-22/amc
Inst Owners97.89%
Inst Owner Change-4.54%
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap15.34B
Analysts82.96
Price Target260.16 (40.03%)
Short Float %1.7%
Short Ratio1.49
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.8%
Min EPS beat(2)-14.41%
Max EPS beat(2)-1.19%
EPS beat(4)0
Avg EPS beat(4)-3.99%
Min EPS beat(4)-14.41%
Max EPS beat(4)-0.04%
EPS beat(8)0
Avg EPS beat(8)-2.59%
EPS beat(12)4
Avg EPS beat(12)-1.62%
EPS beat(16)7
Avg EPS beat(16)-0.54%
Revenue beat(2)0
Avg Revenue beat(2)-4.14%
Min Revenue beat(2)-6.75%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-6.75%
Max Revenue beat(4)-1.54%
Revenue beat(8)0
Avg Revenue beat(8)-2.73%
Revenue beat(12)0
Avg Revenue beat(12)-2.37%
Revenue beat(16)1
Avg Revenue beat(16)-1.54%
PT rev (1m)-1.48%
PT rev (3m)-10.62%
EPS NQ rev (1m)-6.26%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)-5.41%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-1.53%
Valuation
Industry RankSector Rank
PE 13.27
Fwd PE 12.84
P/S 1.85
P/FCF 13.71
P/OCF 11.92
P/B 1.61
P/tB N/A
EV/EBITDA 10.88
EPS(TTM)14
EY7.54%
EPS(NY)14.47
Fwd EY7.79%
FCF(TTM)13.55
FCFY7.29%
OCF(TTM)15.58
OCFY8.39%
SpS100.31
BVpS115.35
TBVpS-37.41
PEG (NY)3.95
PEG (5Y)0.87
Profitability
Industry RankSector Rank
ROA 4.69%
ROE 8.31%
ROCE 8.66%
ROIC 6.84%
ROICexc 7.11%
ROICexgc 103.45%
OM 14.73%
PM (TTM) 9.56%
GM 29.51%
FCFM 13.51%
ROA(3y)3.74%
ROA(5y)4.36%
ROE(3y)6.96%
ROE(5y)8.15%
ROIC(3y)5.8%
ROIC(5y)6.92%
ROICexc(3y)5.97%
ROICexc(5y)8.67%
ROICexgc(3y)88.82%
ROICexgc(5y)90.84%
ROCE(3y)7.34%
ROCE(5y)8.76%
ROICexcg growth 3Y-4.45%
ROICexcg growth 5Y-5.01%
ROICexc growth 3Y27.99%
ROICexc growth 5Y-24.17%
OM growth 3Y9.91%
OM growth 5Y-0.95%
PM growth 3Y50.65%
PM growth 5Y-6.44%
GM growth 3Y2.3%
GM growth 5Y-0.09%
F-Score8
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 3.06
Debt/EBITDA 1.99
Cap/Depr 34.4%
Cap/Sales 2.03%
Interest Coverage 6.2
Cash Conversion 75.33%
Profit Quality 141.33%
Current Ratio 1.26
Quick Ratio 1.26
Altman-Z 2.29
F-Score8
WACC7.37%
ROIC/WACC0.93
Cap/Depr(3y)27.79%
Cap/Depr(5y)38.09%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.83%
Profit Quality(3y)130.43%
Profit Quality(5y)205.36%
High Growth Momentum
Growth
EPS 1Y (TTM)9.63%
EPS 3Y13.76%
EPS 5Y15.23%
EPS Q2Q%-0.87%
EPS Next Y3.36%
EPS Next 2Y8.07%
EPS Next 3Y10.31%
EPS Next 5Y10.73%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y14.75%
Revenue growth 5Y24.17%
Sales Q2Q%-1.22%
Revenue Next Year1.37%
Revenue Next 2Y3.69%
Revenue Next 3Y5.17%
Revenue Next 5Y6.03%
EBIT growth 1Y16.62%
EBIT growth 3Y26.12%
EBIT growth 5Y22.99%
EBIT Next Year10.34%
EBIT Next 3Y10.98%
EBIT Next 5Y8.66%
FCF growth 1Y9.63%
FCF growth 3Y15.01%
FCF growth 5Y25.32%
OCF growth 1Y10.82%
OCF growth 3Y15.78%
OCF growth 5Y25.55%