ICLR 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. Both the profitability and the financial health of ICLR get a neutral evaluation. Nothing too spectacular is happening here. ICLR has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years ICLR has always been profitable.
ICLR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 3.63%, ICLR is doing good in the industry, outperforming 75.86% of the companies in the same industry.
ICLR's Return On Equity of 6.42% is fine compared to the rest of the industry. ICLR outperforms 75.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.74%, ICLR is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
ICLR had an Average Return On Invested Capital over the past 3 years of 5.80%. This is significantly below the industry average of 13.29%.
The last Return On Invested Capital (6.74%) for ICLR is above the 3 year average (5.80%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	3.63%
ROE	6.42%
ROIC	6.74%

ROA(3y)3.74%

ROA(5y)4.36%

ROE(3y)6.96%

ROE(5y)8.15%

ROIC(3y)5.8%

ROIC(5y)6.92%

1.3 Margins

The Profit Margin of ICLR (7.40%) is better than 75.86% of its industry peers.
ICLR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.99%, ICLR is doing good in the industry, outperforming 74.14% of the companies in the same industry.
ICLR's Operating Margin has been stable in the last couple of years.
The Gross Margin of ICLR (28.15%) is worse than 77.59% 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 Rank	Sector Rank
OM	13.99%
PM (TTM)	7.4%
GM	28.15%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ICLR is destroying value.
The number of shares outstanding for ICLR has been reduced compared to 1 year ago.
Compared to 5 years ago, ICLR has more shares outstanding
ICLR has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.11 indicates that ICLR is not a great score, but indicates only limited risk for bankruptcy at the moment.
ICLR's Altman-Z score of 2.11 is in line compared to the rest of the industry. ICLR outperforms 55.17% of its industry peers.
ICLR has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as ICLR would need 3.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.53, ICLR is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
ICLR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, ICLR is in line with its industry, outperforming 48.28% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	3.53
Altman-Z	2.11

ROIC/WACC0.73

WACC9.23%

2.3 Liquidity

A Current Ratio of 1.06 indicates that ICLR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, ICLR is doing worse than 84.48% of the companies in the same industry.
ICLR has a Quick Ratio of 1.06. This is a normal value and indicates that ICLR is financially healthy and should not expect problems in meeting its short term obligations.
ICLR's Quick ratio of 1.06 is on the low side compared to the rest of the industry. ICLR is outperformed by 77.59% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	1.06

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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 ICLR have decreased by -5.99% in the last year.
ICLR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.23% yearly.
ICLR shows a decrease in Revenue. In the last year, the revenue decreased by -2.46%.
ICLR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.17% yearly.

EPS 1Y (TTM)-5.99%

EPS 3Y13.76%

EPS 5Y15.23%

EPS Q2Q%-1.19%

Revenue 1Y (TTM)-2.46%

Revenue growth 3Y14.75%

Revenue growth 5Y24.17%

Sales Q2Q%0.63%

3.2 Future

ICLR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
Based on estimates for the next years, ICLR will show a small growth in Revenue. The Revenue will grow by 2.38% on average per year.

EPS Next Y-4.72%

EPS Next 2Y-1.9%

EPS Next 3Y1.92%

EPS Next 5Y5.27%

Revenue Next Year-2.43%

Revenue Next 2Y-1.08%

Revenue Next 3Y0.75%

Revenue Next 5Y2.38%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

A Price/Earnings ratio of 13.67 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 94.83% of the companies listed in the same industry.
ICLR is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
ICLR is valuated correctly with a Price/Forward Earnings ratio of 13.38.
Based on the Price/Forward Earnings ratio, ICLR is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. ICLR is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	13.67
Fwd PE	13.38

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ICLR is valued cheaper than 96.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ICLR is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.