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IQVIA HOLDINGS INC (IQV) Stock Fundamental Analysis

NYSE:IQV - New York Stock Exchange, Inc. - US46266C1053 - Common Stock

205.69  +8.33 (+4.22%)

After market: 205.69 0 (0%)

Fundamental Rating

5

Overall IQV gets a fundamental rating of 5 out of 10. We evaluated IQV against 56 industry peers in the Life Sciences Tools & Services industry. IQV scores excellent on profitability, but there are concerns on its financial health. IQV has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year IQV was profitable.
In the past year IQV had a positive cash flow from operations.
Each year in the past 5 years IQV has been profitable.
IQV had a positive operating cash flow in each of the past 5 years.
IQV Yearly Net Income VS EBIT VS OCF VS FCFIQV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.17%, IQV belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
IQV has a Return On Equity of 20.17%. This is amongst the best in the industry. IQV outperforms 94.64% of its industry peers.
IQV's Return On Invested Capital of 9.33% is amongst the best of the industry. IQV outperforms 87.50% of its industry peers.
IQV had an Average Return On Invested Capital over the past 3 years of 7.75%. This is below the industry average of 9.93%.
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 RankSector 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%
IQV Yearly ROA, ROE, ROICIQV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60

1.3 Margins

IQV has a Profit Margin of 9.17%. This is in the better half of the industry: IQV outperforms 78.57% of its industry peers.
IQV's Profit Margin has improved in the last couple of years.
IQV's Operating Margin of 14.14% is fine compared to the rest of the industry. IQV outperforms 78.57% of its industry peers.
IQV's Operating Margin has improved in the last couple of years.
The Gross Margin of IQV (35.17%) is worse than 60.71% of its industry peers.
IQV's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
IQV Yearly Profit, Operating, Gross MarginsIQV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IQV is destroying value.
The number of shares outstanding for IQV has been reduced compared to 1 year ago.
IQV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IQV is higher compared to a year ago.
IQV Yearly Shares OutstandingIQV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
IQV Yearly Total Debt VS Total AssetsIQV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 2.12 indicates that IQV is not a great score, but indicates only limited risk for bankruptcy at the moment.
IQV has a Altman-Z score (2.12) which is comparable to the rest of the industry.
IQV has a debt to FCF ratio of 6.89. This is a slightly negative value and a sign of low solvency as IQV would need 6.89 years to pay back of all of its debts.
IQV's Debt to FCF ratio of 6.89 is fine compared to the rest of the industry. IQV outperforms 60.71% of its industry peers.
IQV has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
IQV has a worse Debt to Equity ratio (1.76) than 82.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.76
Debt/FCF 6.89
Altman-Z 2.12
ROIC/WACC0.92
WACC10.16%
IQV Yearly LT Debt VS Equity VS FCFIQV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

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.
IQV's Current ratio of 0.81 is on the low side compared to the rest of the industry. IQV is outperformed by 92.86% of its industry peers.
A Quick Ratio of 0.81 indicates that IQV may have some problems paying its short term obligations.
IQV has a Quick ratio of 0.81. This is amonst the worse of the industry: IQV underperforms 89.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.81
IQV Yearly Current Assets VS Current LiabilitesIQV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.00% over the past year.
IQV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.97% yearly.
IQV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.10%.
Measured over the past years, IQV shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
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

The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
Based on estimates for the next years, IQV will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
EPS Next Y10.14%
EPS Next 2Y8.81%
EPS Next 3Y9.48%
EPS Next 5Y10.21%
Revenue Next Year3.14%
Revenue Next 2Y3.83%
Revenue Next 3Y4.56%
Revenue Next 5Y5.46%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IQV Yearly Revenue VS EstimatesIQV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
IQV Yearly EPS VS EstimatesIQV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 18.94, the valuation of IQV can be described as rather expensive.
Based on the Price/Earnings ratio, IQV is valued cheaply inside the industry as 94.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of IQV to the average of the S&P500 Index (28.29), we can say IQV is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.02, the valuation of IQV can be described as rather expensive.
Based on the Price/Forward Earnings ratio, IQV is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
IQV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.94
Fwd PE 17.02
IQV Price Earnings VS Forward Price EarningsIQV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

IQV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IQV is cheaper than 94.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IQV is valued cheaper than 94.64% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.04
EV/EBITDA 14.42
IQV Per share dataIQV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IQV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of IQV may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.46
EPS Next 2Y8.81%
EPS Next 3Y9.48%

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0

5. Dividend

5.1 Amount

No dividends for IQV!.
Industry RankSector Rank
Dividend Yield N/A

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IQVIA HOLDINGS INC

NYSE:IQV (1/21/2025, 6:30:00 PM)

After market: 205.69 0 (0%)

205.69

+8.33 (+4.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners94.46%
Inst Owner Change0.2%
Ins Owners0.89%
Ins Owner Change-0.06%
Market Cap37.33B
Analysts81.29
Price Target253.71 (23.35%)
Short Float %1.73%
Short Ratio1.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.98%
Min EPS beat(2)0.06%
Max EPS beat(2)1.9%
EPS beat(4)3
Avg EPS beat(4)0.76%
Min EPS beat(4)-0.32%
Max EPS beat(4)1.9%
EPS beat(8)6
Avg EPS beat(8)0.72%
EPS beat(12)10
Avg EPS beat(12)1.25%
EPS beat(16)14
Avg EPS beat(16)2.41%
Revenue beat(2)0
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.73%
PT rev (1m)-0.24%
PT rev (3m)-9.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)-0.61%
Valuation
Industry RankSector Rank
PE 18.94
Fwd PE 17.02
P/S 2.44
P/FCF 19.04
P/OCF 14.48
P/B 5.36
P/tB N/A
EV/EBITDA 14.42
EPS(TTM)10.86
EY5.28%
EPS(NY)12.09
Fwd EY5.88%
FCF(TTM)10.8
FCFY5.25%
OCF(TTM)14.2
OCFY6.91%
SpS84.38
BVpS38.39
TBVpS-70.84
PEG (NY)1.87
PEG (5Y)1.46
Profitability
Industry RankSector Rank
ROA 5.17%
ROE 20.17%
ROCE 10.72%
ROIC 9.33%
ROICexc 10.19%
ROICexgc N/A
OM 14.14%
PM (TTM) 9.17%
GM 35.17%
FCFM 12.8%
ROA(3y)4.44%
ROA(5y)3.05%
ROE(3y)19.04%
ROE(5y)12.99%
ROIC(3y)7.75%
ROIC(5y)6.1%
ROICexc(3y)8.35%
ROICexc(5y)6.57%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)8.91%
ROCE(5y)7.01%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y36.6%
ROICexc growth 5Y19.76%
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%
F-Score8
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 1.76
Debt/FCF 6.89
Debt/EBITDA 3.73
Cap/Depr 54.75%
Cap/Sales 4.03%
Interest Coverage 250
Cash Conversion 78.31%
Profit Quality 139.57%
Current Ratio 0.81
Quick Ratio 0.81
Altman-Z 2.12
F-Score8
WACC10.16%
ROIC/WACC0.92
Cap/Depr(3y)55.99%
Cap/Depr(5y)52.85%
Cap/Sales(3y)4.54%
Cap/Sales(5y)4.86%
Profit Quality(3y)164.71%
Profit Quality(5y)282.53%
High Growth Momentum
Growth
EPS 1Y (TTM)7%
EPS 3Y16.72%
EPS 5Y12.97%
EPS Q2Q%14.06%
EPS Next Y10.14%
EPS Next 2Y8.81%
EPS Next 3Y9.48%
EPS Next 5Y10.21%
Revenue 1Y (TTM)3.1%
Revenue growth 3Y9.67%
Revenue growth 5Y7.55%
Sales Q2Q%4.28%
Revenue Next Year3.14%
Revenue Next 2Y3.83%
Revenue Next 3Y4.56%
Revenue Next 5Y5.46%
EBIT growth 1Y11.89%
EBIT growth 3Y38.07%
EBIT growth 5Y20.57%
EBIT Next Year23.07%
EBIT Next 3Y11.44%
EBIT Next 5Y9.96%
FCF growth 1Y15.01%
FCF growth 3Y3.75%
FCF growth 5Y13.54%
OCF growth 1Y7.78%
OCF growth 3Y3.13%
OCF growth 5Y11.38%