PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
Overall PINC gets a fundamental rating of 5 out of 10. We evaluated PINC against 109 industry peers in the Health Care Providers & Services industry. While PINC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PINC is cheap, 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.
In the past 5 years PINC has always been profitable.
Each year in the past 5 years PINC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.39%, PINC is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.45%, PINC is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
PINC's Return On Invested Capital of 6.48% is fine compared to the rest of the industry. PINC outperforms 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PINC is in line with the industry average of 8.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 7.45% | ||
| ROIC | 6.48% |
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
With an excellent Profit Margin value of 11.41%, PINC belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
PINC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.16%, PINC belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
PINC's Operating Margin has declined in the last couple of years.
PINC's Gross Margin of 67.24% is amongst the best of the industry. PINC outperforms 89.81% of its industry peers.
In the last couple of years the Gross Margin of PINC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 11.41% | ||
| GM | 67.24% |
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
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 1.36, we must say that PINC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.36, PINC is doing worse than 62.96% of the companies in the same industry.
PINC has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as PINC would need 3.66 years to pay back of all of its debts.
PINC has a better Debt to FCF ratio (3.66) than 79.63% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that PINC is not too dependend on debt financing.
The Debt to Equity ratio of PINC (0.32) is better than 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.87
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.09 indicates that PINC should not have too much problems paying its short term obligations.
PINC's Current ratio of 1.09 is on the low side compared to the rest of the industry. PINC is outperformed by 73.15% of its industry peers.
PINC has a Quick Ratio of 1.09. This is a normal value and indicates that PINC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, PINC is doing worse than 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for PINC have decreased strongly by -22.92% in the last year.
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.
The Revenue has been growing slightly by 0.77% in the past year.
The Revenue has been growing slightly by 2.03% on average over the past years.
EPS 1Y (TTM)-22.92%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-55%
Revenue 1Y (TTM)0.77%
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 -7.48% on average over the next years.
PINC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.47% yearly.
EPS Next Y-44.62%
EPS Next 2Y-25.14%
EPS Next 3Y-14.47%
EPS Next 5Y-7.48%
Revenue Next Year-24.74%
Revenue Next 2Y-12.73%
Revenue Next 3Y-7.52%
Revenue Next 5Y-5.47%
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
Based on the Price/Earnings ratio of 10.33, the valuation of PINC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 92.59% of the companies listed in the same industry.
PINC is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.33, which indicates a correct valuation of PINC.
Based on the Price/Forward Earnings ratio, PINC is valued a bit cheaper than 78.70% of the companies in the same industry.
PINC is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 91.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 93.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
PINC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PINC's earnings are expected to decrease with -14.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.14%
EPS Next 3Y-14.47%
5. Dividend
5.1 Amount
PINC has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
PINC's Dividend Yield is rather good when compared to the industry average which is at 2.87. PINC pays more dividend than 96.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, PINC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 62.33% of its income as dividend. This is not a sustainable payout ratio.
DP62.33%
EPS Next 2Y-25.14%
EPS Next 3Y-14.47%
PREMIER INC-CLASS A
NASDAQ:PINC (2/4/2025, 8:01:24 PM)
After market: 18.98 -0.13 (-0.68%)19.11
-3.29 (-14.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change-1.59%
Ins Owners0.71%
Ins Owner Change4.63%
Market Cap1.84B
Analysts51.43
Price Target21.71 (13.61%)
Short Float %9.96%
Short Ratio8.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP62.33%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.47%
Min EPS beat(2)32.96%
Max EPS beat(2)37.97%
EPS beat(4)4
Avg EPS beat(4)21.4%
Min EPS beat(4)2.4%
Max EPS beat(4)37.97%
EPS beat(8)7
Avg EPS beat(8)11.96%
EPS beat(12)9
Avg EPS beat(12)7.42%
EPS beat(16)12
Avg EPS beat(16)7.86%
Revenue beat(2)2
Avg Revenue beat(2)5.41%
Min Revenue beat(2)1.18%
Max Revenue beat(2)9.64%
Revenue beat(4)3
Avg Revenue beat(4)3.09%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)9.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)7
Avg Revenue beat(12)-0.43%
Revenue beat(16)11
Avg Revenue beat(16)0.78%
PT rev (1m)0%
PT rev (3m)9.16%
EPS NQ rev (1m)2.81%
EPS NQ rev (3m)-53.16%
EPS NY rev (1m)0.34%
EPS NY rev (3m)6.95%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-29.34%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 14.33 | ||
| P/S | 1.44 | ||
| P/FCF | 8.97 | ||
| P/OCF | 6.51 | ||
| P/B | 0.94 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)1.85
EY9.68%
EPS(NY)1.33
Fwd EY6.98%
FCF(TTM)2.13
FCFY11.15%
OCF(TTM)2.94
OCFY15.37%
SpS13.27
BVpS20.33
TBVpS7.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 7.45% | ||
| ROCE | 9.17% | ||
| ROIC | 6.48% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 13.05% | ||
| OM | 19.16% | ||
| PM (TTM) | 11.41% | ||
| GM | 67.24% | ||
| FCFM | 16.05% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 61.94% | ||
| Cap/Sales | 6.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.36% | ||
| Profit Quality | 140.62% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.36 |
F-Score4
WACC7.43%
ROIC/WACC0.87
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-44.62%
EPS Next 2Y-25.14%
EPS Next 3Y-14.47%
EPS Next 5Y-7.48%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-28.22%
Revenue Next Year-24.74%
Revenue Next 2Y-12.73%
Revenue Next 3Y-7.52%
Revenue Next 5Y-5.47%
EBIT growth 1Y0.71%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-16.86%
EBIT Next 3Y24.1%
EBIT Next 5YN/A
FCF growth 1Y-45.93%
FCF growth 3Y-12.23%
FCF growth 5Y-12.16%
OCF growth 1Y-39.13%
OCF growth 3Y-10.04%
OCF growth 5Y-10.11%