IQVIA HOLDINGS INC (IQV)
US46266C1053 - Common Stock
We assign a fundamental rating of 4 out of 10 to IQV. IQV was compared to 55 industry peers in the Life Sciences Tools & Services industry. IQV has an excellent profitability rating, but there are concerns on its financial health. IQV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IQV had positive earnings in the past year.
IQV had a positive operating cash flow in the past year.
IQV had positive earnings in each of the past 5 years.
In the past 5 years IQV always reported a positive cash flow from operatings.
1.2 Ratios
IQV's Return On Assets of 5.17% is amongst the best of the industry. IQV outperforms 85.45% of its industry peers.
IQV's Return On Equity of 20.17% is amongst the best of the industry. IQV outperforms 94.55% of its industry peers.
The Return On Invested Capital of IQV (9.33%) is better than 87.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IQV is below the industry average of 10.45%.
The last Return On Invested Capital (9.33%) for IQV is above the 3 year average (7.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 20.17% | ||
| ROIC | 9.33% |
ROA(3y)4.44%
ROA(5y)3.05%
ROE(3y)19.04%
ROE(5y)12.99%
ROIC(3y)7.75%
ROIC(5y)6.1%
1.3 Margins
The Profit Margin of IQV (9.17%) is better than 78.18% of its industry peers.
In the last couple of years the Profit Margin of IQV has grown nicely.
IQV has a Operating Margin of 14.14%. This is in the better half of the industry: IQV outperforms 78.18% of its industry peers.
In the last couple of years the Operating Margin of IQV has grown nicely.
With a Gross Margin value of 35.17%, IQV is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
IQV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 9.17% | ||
| GM | 35.17% |
OM growth 3Y25.9%
OM growth 5Y12.1%
PM growth 3Y54.53%
PM growth 5Y29.51%
GM growth 3Y0.96%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
IQV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
IQV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IQV has less shares outstanding
IQV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.09 indicates that IQV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of IQV (2.09) is comparable to the rest of the industry.
The Debt to FCF ratio of IQV is 6.89, which is on the high side as it means it would take IQV, 6.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.89, IQV is in line with its industry, outperforming 58.18% of the companies in the same industry.
IQV has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.76, IQV is doing worse than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.93
WACC10.08%
2.3 Liquidity
IQV has a Current Ratio of 0.81. This is a bad value and indicates that IQV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, IQV is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that IQV may have some problems paying its short term obligations.
IQV has a worse Quick ratio (0.81) than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.00% over the past year.
Measured over the past years, IQV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.97% on average per year.
Looking at the last year, IQV shows a small growth in Revenue. The Revenue has grown by 3.10% in the last year.
IQV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
EPS 1Y (TTM)7%
EPS 3Y16.72%
EPS 5Y12.97%
EPS Q2Q%14.06%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y9.67%
Revenue growth 5Y7.55%
Sales Q2Q%4.28%
3.2 Future
IQV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.99% yearly.
The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y10.16%
EPS Next 2Y9.25%
EPS Next 3Y10.09%
EPS Next 5Y11.99%
Revenue Next Year3.15%
Revenue Next 2Y4.02%
Revenue Next 3Y4.64%
Revenue Next 5Y6.02%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 17.74, the valuation of IQV can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IQV indicates a rather cheap valuation: IQV is cheaper than 98.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.53, IQV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.81, the valuation of IQV can be described as correct.
IQV's Price/Forward Earnings ratio is rather cheap when compared to the industry. IQV is cheaper than 92.73% of the companies in the same industry.
IQV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
92.73% of the companies in the same industry are more expensive than IQV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IQV is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
IQV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IQV may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)1.37
EPS Next 2Y9.25%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
No dividends for IQV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IQVIA HOLDINGS INC
NYSE:IQV (11/15/2024, 8:19:07 PM)
After market: 192.68 0 (0%)192.68
-10.26 (-5.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 15.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.75
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 20.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.14% | ||
| PM (TTM) | 9.17% | ||
| GM | 35.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7%
EPS 3Y16.72%
EPS 5Y
EPS Q2Q%
EPS Next Y10.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.1%
Revenue growth 3Y9.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y