186.155 USD
-0.59 (-0.31%)
ICLR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. ICLR has an average financial health and profitability rating. ICLR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ICLR had positive earnings in the past year.
- ICLR had a positive operating cash flow in the past year.
- ICLR had positive earnings in each of the past 5 years.
- ICLR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ICLR's Return On Assets of 3.63% is fine compared to the rest of the industry. ICLR outperforms 75.44% of its industry peers.
- The Return On Equity of ICLR (6.42%) is better than 75.44% of its industry peers.
- With a decent Return On Invested Capital value of 6.74%, ICLR is doing good in the industry, outperforming 75.44% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ICLR is significantly below the industry average of 13.75%.
- 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
- ICLR's Profit Margin of 7.40% is fine compared to the rest of the industry. ICLR outperforms 75.44% of its industry peers.
- ICLR's Profit Margin has declined in the last couple of years.
- ICLR has a Operating Margin of 13.99%. This is in the better half of the industry: ICLR outperforms 73.68% of its industry peers.
- In the last couple of years the Operating Margin of ICLR has remained more or less at the same level.
- ICLR has a Gross Margin of 28.15%. This is in the lower half of the industry: ICLR underperforms 77.19% 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ICLR is destroying value.
- Compared to 1 year ago, ICLR has less shares outstanding
- The number of shares outstanding for ICLR has been increased compared to 5 years ago.
- Compared to 1 year ago, ICLR has an improved debt to assets ratio.
2.2 Solvency
- ICLR has an Altman-Z score of 2.12. This is not the best score and indicates that ICLR is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of ICLR (2.12) is comparable to the rest of the industry.
- The Debt to FCF ratio of ICLR is 3.53, which is a good value as it means it would take ICLR, 3.53 years of fcf income to pay off all of its debts.
- ICLR's Debt to FCF ratio of 3.53 is fine compared to the rest of the industry. ICLR outperforms 78.95% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that ICLR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.31, ICLR is in line with its industry, outperforming 49.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.76
WACC8.88%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that ICLR should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.06, ICLR is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
- 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 has a worse Quick ratio (1.06) than 77.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The earnings per share for ICLR have decreased by -5.99% in the last year.
- The Earnings Per Share has been growing by 15.23% on average over the past years. This is quite good.
- Looking at the last year, ICLR shows a decrease in Revenue. The Revenue has decreased by -2.46% 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)-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
- The Earnings Per Share is expected to grow by 5.27% on average over the next years.
- The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y-4.69%
EPS Next 2Y-1.27%
EPS Next 3Y2.47%
EPS Next 5Y5.27%
Revenue Next Year-2.43%
Revenue Next 2Y-1.03%
Revenue Next 3Y0.73%
Revenue Next 5Y2.38%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- ICLR is valuated correctly with a Price/Earnings ratio of 14.11.
- Based on the Price/Earnings ratio, ICLR is valued cheaply inside the industry as 96.49% of the companies are valued more expensively.
- ICLR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 13.64 indicates a correct valuation of ICLR.
- Based on the Price/Forward Earnings ratio, ICLR is valued cheaper than 96.49% of the companies in the same industry.
- ICLR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ICLR is valued cheaper than 98.25% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ICLR is valued cheaper than 96.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
- ICLR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-1.27%
EPS Next 3Y2.47%
5. Dividend
5.1 Amount
- ICLR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ICON PLC / ICLR FAQ
Can you provide the ChartMill fundamental rating for ICON PLC?
ChartMill assigns a fundamental rating of 5 / 10 to ICLR.
What is the valuation status for ICLR stock?
ChartMill assigns a valuation rating of 6 / 10 to ICON PLC (ICLR). This can be considered as Fairly Valued.
How profitable is ICON PLC (ICLR) stock?
ICON PLC (ICLR) has a profitability rating of 6 / 10.
What is the valuation of ICON PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ICON PLC (ICLR) is 14.11 and the Price/Book (PB) ratio is 1.52.
How financially healthy is ICON PLC?
The financial health rating of ICON PLC (ICLR) is 5 / 10.