PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
Taking everything into account, PINC scores 4 out of 10 in our fundamental rating. PINC was compared to 105 industry peers in the Health Care Providers & Services industry. PINC has an average financial health and profitability rating. PINC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PINC had positive earnings in the past year.
PINC had a positive operating cash flow in the past year.
PINC had positive earnings in each of the past 5 years.
Each year in the past 5 years PINC had a positive operating cash flow.
1.2 Ratios
PINC has a Return On Assets of -0.15%. This is comparable to the rest of the industry: PINC outperforms 48.57% of its industry peers.
With a Return On Equity value of -0.28%, PINC perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
The Return On Invested Capital of PINC (2.52%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PINC is in line with the industry average of 8.81%.
The 3 year average ROIC (6.96%) for PINC is well above the current ROIC(2.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.28% | ||
| ROIC | 2.52% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
1.3 Margins
PINC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.27%, PINC is doing good in the industry, outperforming 75.24% of the companies in the same industry.
In the last couple of years the Operating Margin of PINC has declined.
PINC has a better Gross Margin (68.38%) than 88.57% of its industry peers.
PINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | N/A | ||
| GM | 68.38% |
OM growth 3Y10.08%
OM growth 5Y-8.03%
PM growth 3Y-16.32%
PM growth 5YN/A
GM growth 3Y10.68%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
PINC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PINC has less shares outstanding
PINC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PINC has a worse debt to assets ratio.
2.2 Solvency
PINC has an Altman-Z score of 0.94. This is a bad value and indicates that PINC is not financially healthy and even has some risk of bankruptcy.
PINC has a worse Altman-Z score (0.94) than 70.48% of its industry peers.
The Debt to FCF ratio of PINC is 2.21, which is a good value as it means it would take PINC, 2.21 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.21, PINC belongs to the best of the industry, outperforming 81.90% of the companies in the same industry.
PINC has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
PINC's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. PINC outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.35
WACC7.23%
2.3 Liquidity
PINC has a Current Ratio of 0.83. This is a bad value and indicates that PINC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.83, PINC is not doing good in the industry: 83.81% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that PINC may have some problems paying its short term obligations.
PINC's Quick ratio of 0.83 is on the low side compared to the rest of the industry. PINC is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
PINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.92%.
Measured over the past years, PINC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
PINC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.25%.
Measured over the past years, PINC shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
EPS 1Y (TTM)-22.92%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-55%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-28.22%
3.2 Future
The Earnings Per Share is expected to decrease by -7.07% on average over the next years.
Based on estimates for the next years, PINC will show a decrease in Revenue. The Revenue will decrease by -5.81% on average per year.
EPS Next Y-44.91%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
EPS Next 5Y-7.07%
Revenue Next Year-24.89%
Revenue Next 2Y-13.89%
Revenue Next 3Y-8.77%
Revenue Next 5Y-5.81%
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 decreasing.
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
With a Price/Earnings ratio of 10.44, the valuation of PINC can be described as very reasonable.
85.71% of the companies in the same industry are more expensive than PINC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PINC to the average of the S&P500 Index (27.63), we can say PINC is valued rather cheaply.
A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of PINC.
78.10% of the companies in the same industry are more expensive than PINC, based on the Price/Forward Earnings ratio.
PINC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PINC is valued a bit cheaper than 61.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PINC is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.79 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
A cheap valuation may be justified as PINC's earnings are expected to decrease with -13.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
5. Dividend
5.1 Amount
PINC has a Yearly Dividend Yield of 4.35%, which is a nice return.
PINC's Dividend Yield is rather good when compared to the industry average which is at 3.75. PINC pays more dividend than 96.19% of the companies in the same industry.
PINC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
PINC has been paying a dividend for over 5 years, so it has already some track record.
PINC has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of PINC are negative and hence is the payout ratio. PINC will probably not be able to sustain this dividend level.
DP-1820.24%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
19.32
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.95%
Inst Owner Change-0.56%
Ins Owners0.84%
Ins Owner Change6.03%
Market Cap1.76B
Analysts51.43
Price Target19.89 (2.95%)
Short Float %20.96%
Short Ratio13.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP-1820.24%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.23%
Min EPS beat(2)-10.51%
Max EPS beat(2)32.96%
EPS beat(4)3
Avg EPS beat(4)18.17%
Min EPS beat(4)-10.51%
Max EPS beat(4)37.97%
EPS beat(8)6
Avg EPS beat(8)9.81%
EPS beat(12)8
Avg EPS beat(12)5.71%
EPS beat(16)11
Avg EPS beat(16)6.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)3.28%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)9.64%
Revenue beat(8)3
Avg Revenue beat(8)-1.27%
Revenue beat(12)6
Avg Revenue beat(12)-1.27%
Revenue beat(16)10
Avg Revenue beat(16)0.17%
PT rev (1m)0%
PT rev (3m)-8.39%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)-2.55%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 13.9 | ||
| P/S | 1.49 | ||
| P/FCF | 4.79 | ||
| P/OCF | 4 | ||
| P/B | 1.03 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)1.85
EY9.58%
EPS(NY)1.39
Fwd EY7.19%
FCF(TTM)4.04
FCFY20.89%
OCF(TTM)4.82
OCFY24.97%
SpS12.94
BVpS18.81
TBVpS6.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.28% | ||
| ROCE | 3.56% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.61% | ||
| ROICexgc | 5.03% | ||
| OM | 7.27% | ||
| PM (TTM) | N/A | ||
| GM | 68.38% | ||
| FCFM | 31.19% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
ROICexc(3y)7.24%
ROICexc(5y)7.79%
ROICexgc(3y)15.82%
ROICexgc(5y)17.29%
ROCE(3y)9.85%
ROCE(5y)10.59%
ROICexcg growth 3Y1.85%
ROICexcg growth 5Y-13.97%
ROICexc growth 3Y3.36%
ROICexc growth 5Y-10.74%
OM growth 3Y10.08%
OM growth 5Y-8.03%
PM growth 3Y-16.32%
PM growth 5YN/A
GM growth 3Y10.68%
GM growth 5Y-1.41%
F-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 59% | ||
| Cap/Sales | 6.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 211.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.94 |
F-Score4
WACC7.23%
ROIC/WACC0.35
Cap/Depr(3y)64.05%
Cap/Depr(5y)65.47%
Cap/Sales(3y)6.1%
Cap/Sales(5y)6.14%
Profit Quality(3y)173.77%
Profit Quality(5y)137.21%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.92%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-55%
EPS Next Y-44.91%
EPS Next 2Y-23.58%
EPS Next 3Y-13.96%
EPS Next 5Y-7.07%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-28.22%
Revenue Next Year-24.89%
Revenue Next 2Y-13.89%
Revenue Next 3Y-8.77%
Revenue Next 5Y-5.81%
EBIT growth 1Y-60.99%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-18.2%
EBIT Next 3Y27.56%
EBIT Next 5YN/A
FCF growth 1Y2.28%
FCF growth 3Y-12.23%
FCF growth 5Y-12.16%
OCF growth 1Y-0.66%
OCF growth 3Y-10.04%
OCF growth 5Y-10.11%