INDV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 190 industry peers in the Pharmaceuticals industry. While INDV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. INDV scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

INDV had positive earnings in the past year.
In the past year INDV had a positive cash flow from operations.
In multiple years INDV reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: INDV reported negative operating cash flow in multiple years.

1.2 Ratios

With an excellent Return On Assets value of 8.62%, INDV belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Invested Capital of INDV (50.62%) is better than 100.00% of its industry peers.
INDV had an Average Return On Invested Capital over the past 3 years of 43.06%. This is significantly above the industry average of 12.83%.
The last Return On Invested Capital (50.62%) for INDV is above the 3 year average (43.06%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	8.62%
ROE	N/A
ROIC	50.62%

ROA(3y)-3.2%

ROA(5y)-1.62%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)43.06%

ROIC(5y)30.49%

1.3 Margins

INDV's Profit Margin of 10.34% is amongst the best of the industry. INDV outperforms 83.68% of its industry peers.
INDV's Profit Margin has declined in the last couple of years.
INDV's Operating Margin of 24.49% is amongst the best of the industry. INDV outperforms 91.58% of its industry peers.
In the last couple of years the Operating Margin of INDV has remained more or less at the same level.
With an excellent Gross Margin value of 85.51%, INDV belongs to the best of the industry, outperforming 88.42% of the companies in the same industry.
INDV's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	24.49%
PM (TTM)	10.34%
GM	85.51%

OM growth 3Y-2.47%

OM growth 5Y-1.25%

PM growth 3Y-81.34%

PM growth 5Y-60.3%

GM growth 3Y0.52%

GM growth 5Y0.74%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INDV is creating value.
INDV has less shares outstanding than it did 1 year ago.
INDV has less shares outstanding than it did 5 years ago.
INDV has a worse debt/assets ratio than last year.

2.2 Solvency

INDV has an Altman-Z score of 2.73. This is not the best score and indicates that INDV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.73, INDV is in the better half of the industry, outperforming 65.26% of the companies in the same industry.
INDV has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as INDV would need 2.68 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.68, INDV belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	2.68
Altman-Z	2.73

ROIC/WACC5.44

WACC9.3%

2.3 Liquidity

A Current Ratio of 0.96 indicates that INDV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.96, INDV is doing worse than 85.79% of the companies in the same industry.
INDV has a Quick Ratio of 0.96. This is a bad value and indicates that INDV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.79, INDV is doing worse than 82.63% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.96
Quick Ratio	0.79

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

INDV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 256.36%, which is quite impressive.
Measured over the past years, INDV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -53.19% on average per year.
INDV shows a decrease in Revenue. In the last year, the revenue decreased by -0.25%.
Measured over the past years, INDV shows a quite strong growth in Revenue. The Revenue has been growing by 8.64% on average per year.

EPS 1Y (TTM)256.36%

EPS 3Y-75.32%

EPS 5Y-53.19%

EPS Q2Q%33.33%

Revenue 1Y (TTM)-0.25%

Revenue growth 3Y14.52%

Revenue growth 5Y8.64%

Sales Q2Q%2.28%

3.2 Future

The Earnings Per Share is expected to grow by 37.61% on average over the next years. This is a very strong growth
Based on estimates for the next years, INDV will show a small growth in Revenue. The Revenue will grow by 1.36% on average per year.

EPS Next Y440.8%

EPS Next 2Y159.09%

EPS Next 3Y96.27%

EPS Next 5Y37.61%

Revenue Next Year3.67%

Revenue Next 2Y-0.17%

Revenue Next 3Y1.6%

Revenue Next 5Y1.36%

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 accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.05, the valuation of INDV can be described as rather expensive.
INDV's Price/Earnings ratio is rather cheap when compared to the industry. INDV is cheaper than 83.68% of the companies in the same industry.
INDV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
With a Price/Forward Earnings ratio of 11.98, the valuation of INDV can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INDV indicates a rather cheap valuation: INDV is cheaper than 85.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, INDV is valued rather cheaply.

		Industry Rank	Sector Rank
PE	18.05
Fwd PE	11.98

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, INDV is valued cheaper than 83.16% of the companies in the same industry.
INDV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INDV is cheaper than 79.47% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	36.81
EV/EBITDA	13.37

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of INDV may justify a higher PE ratio.
A more expensive valuation may be justified as INDV's earnings are expected to grow with 96.27% in the coming years.