PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
USA - NASDAQ:PINC - US74051N1028 - Common Stock
28 USD
+0.14 (+0.5%)
28 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PINC. PINC was compared to 101 industry peers in the Health Care Providers & Services industry. PINC has a medium profitability rating, but doesn't score so well on its financial health evaluation. PINC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PINC was profitable.
In the past year PINC had a positive cash flow from operations.
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 (0.65%) which is in line with its industry peers.
PINC has a Return On Equity (1.32%) which is in line with its industry peers.
PINC has a Return On Invested Capital (4.84%) 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 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.32% | ||
| ROIC | 4.84% |
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
PINC's Profit Margin of 2.00% is fine compared to the rest of the industry. PINC outperforms 62.38% of its industry peers.
In the last couple of years the Profit Margin of PINC has declined.
PINC has a Operating Margin of 14.38%. This is amongst the best in the industry. PINC outperforms 84.16% of its industry peers.
In the last couple of years the Operating Margin of PINC has declined.
PINC has a Gross Margin of 73.41%. This is amongst the best in the industry. PINC outperforms 88.12% of its industry peers.
PINC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.38% | ||
| PM (TTM) | 2% | ||
| GM | 73.41% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PINC is destroying value.
PINC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PINC has been reduced compared to 5 years ago.
PINC has a worse debt/assets ratio than last year.
2.2 Solvency
PINC has an Altman-Z score of 1.02. This is a bad value and indicates that PINC is not financially healthy and even has some risk of bankruptcy.
PINC's Altman-Z score of 1.02 is on the low side compared to the rest of the industry. PINC is outperformed by 71.29% of its industry peers.
PINC has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as PINC would need 2.89 years to pay back of all of its debts.
PINC has a better Debt to FCF ratio (2.89) than 78.22% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that PINC is not too dependend on debt financing.
The Debt to Equity ratio of PINC (0.39) is better than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.62
WACC7.78%
2.3 Liquidity
PINC has a Current Ratio of 0.64. This is a bad value and indicates that PINC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PINC (0.64) is worse than 87.13% of its industry peers.
A Quick Ratio of 0.64 indicates that PINC may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, PINC is not doing good in the industry: 83.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
PINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.71%.
The earnings per share for PINC have been decreasing by -10.94% on average. This is quite bad
Looking at the last year, PINC shows a very negative growth in Revenue. The Revenue has decreased by -24.79% in the last year.
Measured over the past years, PINC shows a decrease in Revenue. The Revenue has been decreasing by -4.87% on average per year.
EPS 1Y (TTM)-35.71%
EPS 3Y-15.66%
EPS 5Y-10.94%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-24.79%
Revenue growth 3Y-10.93%
Revenue growth 5Y-4.87%
Sales Q2Q%-24.96%
3.2 Future
PINC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.24% yearly.
Based on estimates for the next years, PINC will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
EPS Next Y-8.67%
EPS Next 2Y3.69%
EPS Next 3Y3.87%
EPS Next 5Y5.24%
Revenue Next Year-1.31%
Revenue Next 2Y0.89%
Revenue Next 3Y1.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.30, PINC is valued on the expensive side.
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 (27.40), we can say PINC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.04, the valuation of PINC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than the industry average as 60.40% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (22.94), we can say PINC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PINC indicates a somewhat cheap valuation: PINC is cheaper than 64.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PINC is valued cheaply inside the industry as 91.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
PINC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.69%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, PINC has a reasonable but not impressive dividend return.
PINC's Dividend Yield is rather good when compared to the industry average which is at 2.44. PINC pays more dividend than 95.05% of the companies in the same industry.
PINC's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
PINC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of PINC decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
PINC pays out 382.09% of its income as dividend. This is not a sustainable payout ratio.
DP382.09%
EPS Next 2Y3.69%
EPS Next 3Y3.87%
28
+0.14 (+0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.33%
Inst Owner Change-0.11%
Ins Owners1.18%
Ins Owner Change8.61%
Market Cap2.32B
Analysts51.67
Price Target27.54 (-1.64%)
Short Float %11.43%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP382.09%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.01%
Min EPS beat(2)32.64%
Max EPS beat(2)49.39%
EPS beat(4)3
Avg EPS beat(4)26.12%
Min EPS beat(4)-10.51%
Max EPS beat(4)49.39%
EPS beat(8)7
Avg EPS beat(8)20.15%
EPS beat(12)9
Avg EPS beat(12)12.83%
EPS beat(16)12
Avg EPS beat(16)10.38%
Revenue beat(2)2
Avg Revenue beat(2)5.31%
Min Revenue beat(2)4.04%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)2.16%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)6.57%
Revenue beat(8)5
Avg Revenue beat(8)2.18%
Revenue beat(12)6
Avg Revenue beat(12)-0.43%
Revenue beat(16)10
Avg Revenue beat(16)0.32%
PT rev (1m)5%
PT rev (3m)21.15%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-24.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 20.04 | ||
| P/S | 2.29 | ||
| P/FCF | 7.26 | ||
| P/OCF | 5.77 | ||
| P/B | 1.51 | ||
| P/tB | 6.06 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)1.53
EY5.46%
EPS(NY)1.4
Fwd EY4.99%
FCF(TTM)3.86
FCFY13.77%
OCF(TTM)4.86
OCFY17.34%
SpS12.25
BVpS18.51
TBVpS4.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 1.32% | ||
| ROCE | 6.66% | ||
| ROIC | 4.84% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 11.09% | ||
| OM | 14.38% | ||
| PM (TTM) | 2% | ||
| GM | 73.41% | ||
| FCFM | 31.48% |
ROA(3y)3.12%
ROA(5y)4.94%
ROE(3y)4.97%
ROE(5y)7.69%
ROIC(3y)6.34%
ROIC(5y)6.59%
ROICexc(3y)6.61%
ROICexc(5y)6.86%
ROICexgc(3y)14.53%
ROICexgc(5y)14.89%
ROCE(3y)8.73%
ROCE(5y)9.06%
ROICexcg growth 3Y-12%
ROICexcg growth 5Y-15.35%
ROICexc growth 3Y-12.48%
ROICexc growth 5Y-14.13%
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%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 70.26% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 152.5% | ||
| Profit Quality | 1572.75% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.02 |
F-Score5
WACC7.78%
ROIC/WACC0.62
Cap/Depr(3y)64.9%
Cap/Depr(5y)67.16%
Cap/Sales(3y)7.16%
Cap/Sales(5y)6.55%
Profit Quality(3y)653.29%
Profit Quality(5y)443.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-35.71%
EPS 3Y-15.66%
EPS 5Y-10.94%
EPS Q2Q%-33.33%
EPS Next Y-8.67%
EPS Next 2Y3.69%
EPS Next 3Y3.87%
EPS Next 5Y5.24%
Revenue 1Y (TTM)-24.79%
Revenue growth 3Y-10.93%
Revenue growth 5Y-4.87%
Sales Q2Q%-24.96%
Revenue Next Year-1.31%
Revenue Next 2Y0.89%
Revenue Next 3Y1.88%
Revenue Next 5Y1.21%
EBIT growth 1Y-45.69%
EBIT growth 3Y-17.59%
EBIT growth 5Y-16.04%
EBIT Next Year37.91%
EBIT Next 3Y14.87%
EBIT Next 5YN/A
FCF growth 1Y48.01%
FCF growth 3Y-3.69%
FCF growth 5Y4.56%
OCF growth 1Y35.36%
OCF growth 3Y-3.32%
OCF growth 5Y2.81%