ICON PLC (ICLR) Stock Fundamental Analysis
NASDAQ:ICLR - Nasdaq - IE0005711209 - Common Stock - Currency: USD
Overall ICLR gets a fundamental rating of 5 out of 10. We evaluated ICLR against 56 industry peers in the Life Sciences Tools & Services industry. ICLR has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on ICLR. These ratings would make ICLR suitable for value investing!
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.
ICLR had positive earnings in each of the past 5 years.
In the past 5 years ICLR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ICLR (4.69%) is better than 76.79% of its industry peers.
The Return On Equity of ICLR (8.31%) is better than 80.36% of its industry peers.
With a decent Return On Invested Capital value of 6.84%, ICLR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ICLR is significantly below the industry average of 12.38%.
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 Rank | Sector 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%
1.3 Margins
ICLR has a Profit Margin of 9.56%. This is in the better half of the industry: ICLR outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of ICLR has declined.
Looking at the Operating Margin, with a value of 14.73%, ICLR is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
In the last couple of years the Operating Margin of ICLR has remained more or less at the same level.
ICLR's Gross Margin of 29.51% is on the low side compared to the rest of the industry. ICLR is outperformed by 75.00% 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 | 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%
2. Health
2.1 Basic Checks
ICLR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ICLR has been reduced compared to 1 year ago.
The number of shares outstanding for ICLR has been increased compared to 5 years ago.
The debt/assets ratio for ICLR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.95 indicates that ICLR is not a great score, but indicates only limited risk for bankruptcy at the moment.
ICLR's Altman-Z score of 1.95 is in line compared to the rest of the industry. ICLR outperforms 53.57% of its industry peers.
The Debt to FCF ratio of ICLR is 3.06, which is a good value as it means it would take ICLR, 3.06 years of fcf income to pay off all of its debts.
ICLR has a Debt to FCF ratio of 3.06. This is in the better half of the industry: ICLR outperforms 78.57% of its industry peers.
ICLR has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
ICLR has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.93
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ICLR should not have too much problems paying its short term obligations.
The Current ratio of ICLR (1.26) is worse than 78.57% of its industry peers.
A Quick Ratio of 1.26 indicates that ICLR should not have too much problems paying its short term obligations.
ICLR has a Quick ratio of 1.26. This is in the lower half of the industry: ICLR underperforms 73.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.63% over the past 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 small growth in Revenue. The Revenue has grown by 1.99% in the last year.
The Revenue has been growing by 24.17% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ICLR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.95% on average per year.
Based on estimates for the next years, ICLR will show a small growth in Revenue. The Revenue will grow by 4.86% on average per year.
EPS Next Y1.36%
EPS Next 2Y6.79%
EPS Next 3Y8.4%
EPS Next 5Y9.95%
Revenue Next Year0.39%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
Revenue Next 5Y4.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.95, the valuation of ICLR can be described as reasonable.
Based on the Price/Earnings ratio, ICLR is valued cheaply inside the industry as 98.21% of the companies are valued more expensively.
ICLR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 9.82 indicates a reasonable valuation of ICLR.
98.21% of the companies in the same industry are more expensive than ICLR, based on the Price/Forward Earnings ratio.
ICLR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
ICLR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ICLR is cheaper than 98.21% of the companies in the same industry.
98.21% of the companies in the same industry are more expensive than ICLR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ICLR does not grow enough to justify the current Price/Earnings ratio.
ICLR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.32
PEG (5Y)0.65
EPS Next 2Y6.79%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
No dividends for ICLR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
139.32
-4.22 (-2.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.89%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap11.50B
Analysts82.22
Price Target247.67 (77.77%)
Short Float %2.06%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)-2.53%
PT rev (3m)-13.79%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-11.51%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)-7%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.82 | ||
| P/S | 1.39 | ||
| P/FCF | 10.28 | ||
| P/OCF | 8.94 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)14
EY10.05%
EPS(NY)14.19
Fwd EY10.19%
FCF(TTM)13.55
FCFY9.72%
OCF(TTM)15.58
OCFY11.19%
SpS100.31
BVpS115.35
TBVpS-37.41
PEG (NY)7.32
PEG (5Y)0.65
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.95 |
F-Score8
WACC7.32%
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 Y1.36%
EPS Next 2Y6.79%
EPS Next 3Y8.4%
EPS Next 5Y9.95%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y14.75%
Revenue growth 5Y24.17%
Sales Q2Q%-1.22%
Revenue Next Year0.39%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
Revenue Next 5Y4.86%
EBIT growth 1Y16.62%
EBIT growth 3Y26.12%
EBIT growth 5Y22.99%
EBIT Next Year6.87%
EBIT Next 3Y7.95%
EBIT Next 5Y7.38%
FCF growth 1Y9.63%
FCF growth 3Y15.01%
FCF growth 5Y25.32%
OCF growth 1Y10.82%
OCF growth 3Y15.78%
OCF growth 5Y25.55%