Taking everything into account, PINC scores 4 out of 10 in our fundamental rating. PINC was compared to 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of PINC while its profitability can be described as average. PINC is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PINC had positive earnings in the past year.
In the past year PINC had a positive cash flow from operations.
Each year in the past 5 years PINC has been profitable.
Each year in the past 5 years PINC had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -1.08%, PINC perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
The Return On Equity of PINC (-2.16%) is comparable to the rest of the industry.
PINC has a Return On Invested Capital (4.53%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PINC is below the industry average of 9.21%.

		Industry Rank	Sector Rank
ROA	-1.08%
ROE	-2.16%
ROIC	4.53%

ROA(3y)3.12%

ROA(5y)4.94%

ROE(3y)4.97%

ROE(5y)7.69%

ROIC(3y)6.34%

ROIC(5y)6.59%

1.3 Margins

In the last couple of years the Profit Margin of PINC has declined.
With an excellent Operating Margin value of 13.63%, PINC belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
PINC's Operating Margin has declined in the last couple of years.
The Gross Margin of PINC (73.02%) is better than 88.12% of its industry peers.
In the last couple of years the Gross Margin of PINC has grown nicely.

		Industry Rank	Sector Rank
OM	13.63%
PM (TTM)	N/A
GM	73.02%

OM growth 3Y-7.48%

OM growth 5Y-11.75%

PM growth 3Y-52.4%

PM growth 5Y-46.59%

GM growth 3Y5.93%

GM growth 5Y1.94%

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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), PINC is destroying value.
The number of shares outstanding for PINC has been reduced compared to 1 year ago.
The number of shares outstanding for PINC has been reduced compared to 5 years ago.
Compared to 1 year ago, PINC has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.96, we must say that PINC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.96, PINC is not doing good in the industry: 73.27% of the companies in the same industry are doing better.
PINC has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as PINC would need 3.43 years to pay back of all of its debts.
PINC has a Debt to FCF ratio of 3.43. This is in the better half of the industry: PINC outperforms 73.27% of its industry peers.
PINC has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, PINC is in the better half of the industry, outperforming 66.34% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	3.43
Altman-Z	0.96

ROIC/WACC0.57

WACC7.9%

2.3 Liquidity

A Current Ratio of 0.62 indicates that PINC may have some problems paying its short term obligations.
With a Current ratio value of 0.62, PINC is not doing good in the industry: 85.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that PINC may have some problems paying its short term obligations.
PINC's Quick ratio of 0.62 is on the low side compared to the rest of the industry. PINC is outperformed by 81.19% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.62

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3. Growth

3.1 Past

PINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.73%.
Measured over the past years, PINC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.94% on average per year.
Looking at the last year, PINC shows a very negative growth in Revenue. The Revenue has decreased by -21.26% in the last year.
The Revenue has been decreasing by -4.87% on average over the past years.

EPS 1Y (TTM)-30.73%

EPS 3Y-15.66%

EPS 5Y-10.94%

EPS Q2Q%-5.88%

Revenue 1Y (TTM)-21.26%

Revenue growth 3Y-10.93%

Revenue growth 5Y-4.87%

Sales Q2Q%-0.12%

3.2 Future

The Earnings Per Share is expected to grow by 5.24% on average over the next years.
The Revenue is expected to grow by 1.21% on average over the next years.

EPS Next Y-4.67%

EPS Next 2Y4.08%

EPS Next 3Y5.07%

EPS Next 5Y5.24%

Revenue Next Year-1.76%

Revenue Next 2Y1.81%

Revenue Next 3Y3.1%

Revenue Next 5Y1.21%

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.72, which indicates a rather expensive current valuation of PINC.
Based on the Price/Earnings ratio, PINC is valued a bit cheaper than the industry average as 75.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PINC to the average of the S&P500 Index (28.60), we can say PINC is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.05, which indicates a rather expensive current valuation of PINC.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than the industry average as 67.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.83. PINC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	18.72
Fwd PE	17.05

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PINC is valued a bit cheaper than the industry average as 63.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PINC is valued cheaper than 86.14% of the companies in the same industry.