We assign a fundamental rating of 7 out of 10 to PGNY. PGNY was compared to 103 industry peers in the Health Care Providers & Services industry. PGNY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PGNY is growing strongly while it is still valued neutral. This is a good combination! These ratings could make PGNY a good candidate for growth and quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PGNY had positive earnings in the past year.
PGNY had a positive operating cash flow in the past year.
PGNY had positive earnings in each of the past 5 years.
PGNY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 7.11%, PGNY belongs to the best of the industry, outperforming 88.35% of the companies in the same industry.
With a decent Return On Equity value of 10.10%, PGNY is doing good in the industry, outperforming 71.84% of the companies in the same industry.
PGNY has a better Return On Invested Capital (11.24%) than 83.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PGNY is in line with the industry average of 9.16%.
The last Return On Invested Capital (11.24%) for PGNY is above the 3 year average (8.25%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	7.11%
ROE	10.1%
ROIC	11.24%

ROA(3y)7.58%

ROA(5y)11.89%

ROE(3y)10.72%

ROE(5y)17.23%

ROIC(3y)8.25%

ROIC(5y)7.66%

1.3 Margins

With a decent Profit Margin value of 4.46%, PGNY is doing good in the industry, outperforming 77.67% of the companies in the same industry.
PGNY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.77%, PGNY is doing good in the industry, outperforming 70.87% of the companies in the same industry.
PGNY's Operating Margin has improved in the last couple of years.
PGNY has a Gross Margin of 22.94%. This is comparable to the rest of the industry: PGNY outperforms 48.54% of its industry peers.
PGNY's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	6.77%
PM (TTM)	4.46%
GM	22.94%

OM growth 3Y-3.61%

OM growth 5Y1.87%

PM growth 3Y-29.25%

PM growth 5YN/A

GM growth 3Y-1.03%

GM growth 5Y1.85%

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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 just above the Cost of Capital (WACC), so PGNY is still creating some value.
PGNY has less shares outstanding than it did 1 year ago.
PGNY has more shares outstanding than it did 5 years ago.
PGNY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

PGNY has an Altman-Z score of 8.16. This indicates that PGNY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.16, PGNY belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
There is no outstanding debt for PGNY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	8.16

ROIC/WACC1.26

WACC8.9%

2.3 Liquidity

PGNY has a Current Ratio of 2.96. This indicates that PGNY is financially healthy and has no problem in meeting its short term obligations.
PGNY's Current ratio of 2.96 is amongst the best of the industry. PGNY outperforms 83.50% of its industry peers.
PGNY has a Quick Ratio of 2.96. This indicates that PGNY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.96, PGNY belongs to the best of the industry, outperforming 83.50% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.96
Quick Ratio	2.96

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.62% over the past year.
Measured over the past years, PGNY shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.77% on average per year.
PGNY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.41%.
Measured over the past years, PGNY shows a very strong growth in Revenue. The Revenue has been growing by 38.42% on average per year.

EPS 1Y (TTM)8.62%

EPS 3Y-4.77%

EPS 5YN/A

EPS Q2Q%36.36%

Revenue 1Y (TTM)11.41%

Revenue growth 3Y32.6%

Revenue growth 5Y38.42%

Sales Q2Q%9.32%

3.2 Future

The Earnings Per Share is expected to grow by 32.94% on average over the next years. This is a very strong growth
Based on estimates for the next years, PGNY will show a quite strong growth in Revenue. The Revenue will grow by 8.83% on average per year.

EPS Next Y17.75%

EPS Next 2Y29.28%

EPS Next 3Y26.74%

EPS Next 5Y32.94%

Revenue Next Year11.37%

Revenue Next 2Y10.44%

Revenue Next 3Y10.6%

Revenue Next 5Y8.83%

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.
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

PGNY is valuated quite expensively with a Price/Earnings ratio of 37.89.
PGNY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.32, PGNY is valued a bit more expensive.
With a Price/Forward Earnings ratio of 25.06, PGNY can be considered very expensive at the moment.
PGNY's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, PGNY is valued at the same level.

		Industry Rank	Sector Rank
PE	37.89
Fwd PE	25.06

4.2 Price Multiples

PGNY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PGNY is valued cheaply inside the industry as 84.47% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	10.64
EV/EBITDA	16.63

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PGNY may justify a higher PE ratio.
A more expensive valuation may be justified as PGNY's earnings are expected to grow with 26.74% in the coming years.