Taking everything into account, ICLR scores 5 out of 10 in our fundamental rating. ICLR was compared to 57 industry peers in the Life Sciences Tools & Services industry. ICLR has only an average score on both its financial health and profitability. ICLR is not valued too expensively and it also shows a decent 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.
ICLR had a positive operating cash flow in the past year.
Each year in the past 5 years ICLR has been profitable.
Each year in the past 5 years ICLR had a positive operating cash flow.

1.2 Ratios

The Return On Assets of ICLR (3.63%) is better than 75.44% of its industry peers.
With a decent Return On Equity value of 6.42%, ICLR is doing good in the industry, outperforming 75.44% of the companies in the same industry.
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 has a better Profit Margin (7.40%) than 75.44% 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 13.99%, ICLR is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
ICLR's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 28.15%, ICLR is not doing good in the industry: 77.19% of the companies in the same industry are doing better.
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.
ICLR has less shares outstanding than it did 1 year ago.
ICLR has more shares outstanding than it did 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.
With a Altman-Z score value of 2.12, ICLR perfoms like the industry average, outperforming 49.12% of the companies in the same 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 has a better Debt to FCF ratio (3.53) than 78.95% of its industry peers.
ICLR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
ICLR has a Debt to Equity ratio (0.31) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	3.53
Altman-Z	2.12

ROIC/WACC0.76

WACC8.89%

2.3 Liquidity

ICLR has a Current 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 Current ratio of 1.06 is on the low side compared to the rest of the industry. ICLR is outperformed by 84.21% of its industry peers.
A Quick Ratio of 1.06 indicates that ICLR should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.06, ICLR is not doing good in the industry: 77.19% of the companies in the same industry are doing better.

		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

ICLR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.99%.
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 decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
Measured over the past years, ICLR shows a very strong growth in Revenue. The Revenue has been growing by 24.17% on average per year.

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.
ICLR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.38% yearly.

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

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

The Price/Earnings ratio is 14.15, which indicates a correct valuation of ICLR.
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 27.21.
Based on the Price/Forward Earnings ratio of 13.68, the valuation of ICLR can be described as correct.
Based on the Price/Forward Earnings ratio, ICLR is valued cheaply inside the industry as 96.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ICLR is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	14.15
Fwd PE	13.68

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ICLR is valued cheaply inside the industry as 98.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ICLR is valued cheaply inside the industry as 96.49% of the companies are valued more expensively.