PREMIER INC-CLASS A (PINC) Stock Fundamental Analysis
NASDAQ:PINC - Nasdaq - US74051N1028 - Common Stock - Currency: USD
Overall PINC gets a fundamental rating of 4 out of 10. We evaluated PINC against 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PINC was profitable.
PINC had a positive operating cash flow in the past year.
In the past 5 years PINC has always been profitable.
In the past 5 years PINC always reported a positive cash flow from operatings.
1.2 Ratios
PINC has a Return On Assets (2.03%) which is comparable to the rest of the industry.
PINC has a Return On Equity of 4.10%. This is comparable to the rest of the industry: PINC outperforms 58.25% of its industry peers.
The Return On Invested Capital of PINC (6.19%) is better than 64.08% of its industry peers.
PINC had an Average Return On Invested Capital over the past 3 years of 6.96%. This is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.1% | ||
| ROIC | 6.19% |
ROA(3y)5.54%
ROA(5y)8.87%
ROE(3y)8.47%
ROE(5y)13.86%
ROIC(3y)6.96%
ROIC(5y)7.48%
1.3 Margins
The Profit Margin of PINC (5.68%) is better than 81.55% of its industry peers.
PINC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.45%, PINC belongs to the best of the industry, outperforming 95.15% of the companies in the same industry.
In the last couple of years the Operating Margin of PINC has declined.
With an excellent Gross Margin value of 70.96%, PINC belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
PINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.45% | ||
| PM (TTM) | 5.68% | ||
| GM | 70.96% |
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
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.
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
Based on the Altman-Z score of 0.90, we must say that PINC is in the distress zone and has some risk of bankruptcy.
PINC has a Altman-Z score of 0.90. This is in the lower half of the industry: PINC underperforms 71.84% of its industry peers.
PINC has a debt to FCF ratio of 2.87. This is a good value and a sign of high solvency as PINC would need 2.87 years to pay back of all of its debts.
PINC's Debt to FCF ratio of 2.87 is fine compared to the rest of the industry. PINC outperforms 78.64% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that PINC is not too dependend on debt financing.
The Debt to Equity ratio of PINC (0.40) is better than 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.83
WACC7.42%
2.3 Liquidity
PINC has a Current Ratio of 0.65. This is a bad value and indicates that PINC is not financially healthy enough and could expect problems in meeting its short term obligations.
PINC has a Current ratio of 0.65. This is amonst the worse of the industry: PINC underperforms 87.38% of its industry peers.
PINC has a Quick Ratio of 0.65. 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 Quick ratio of PINC (0.65) is worse than 81.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PINC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.74%.
PINC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
The Revenue for PINC has decreased by -17.69% in the past year. This is quite bad
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)-25.74%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)-17.69%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-23.71%
3.2 Future
The Earnings Per Share is expected to decrease by -5.13% on average over the next years.
The Revenue is expected to decrease by -5.94% on average over the next years.
EPS Next Y-41.07%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
EPS Next 5Y-5.13%
Revenue Next Year-24.21%
Revenue Next 2Y-13.65%
Revenue Next 3Y-8.71%
Revenue Next 5Y-5.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PINC is valuated reasonably with a Price/Earnings ratio of 11.98.
Compared to the rest of the industry, the Price/Earnings ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 83.50% of the companies listed in the same industry.
PINC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 14.81, which indicates a correct valuation of PINC.
PINC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PINC is cheaper than 72.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PINC to the average of the S&P500 Index (21.76), we can say PINC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PINC is valued a bit cheaper than the industry average as 74.76% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PINC is valued cheaper than 93.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.34 | ||
| EV/EBITDA | 8.37 |
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 -14.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, PINC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.50, PINC pays a better dividend. On top of this PINC pays more dividend than 97.09% of the companies listed in the same industry.
PINC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
130.89% of the earnings are spent on dividend by PINC. This is not a sustainable payout ratio.
DP130.89%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
21.08
-0.38 (-1.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.05%
Inst Owner Change0%
Ins Owners0.86%
Ins Owner Change-1.28%
Market Cap1.74B
Analysts51.43
Price Target22.73 (7.83%)
Short Float %13.96%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend0.85
Dividend Growth(5Y)N/A
DP130.89%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.44%
Min EPS beat(2)-10.51%
Max EPS beat(2)49.39%
EPS beat(4)3
Avg EPS beat(4)27.45%
Min EPS beat(4)-10.51%
Max EPS beat(4)49.39%
EPS beat(8)7
Avg EPS beat(8)16.28%
EPS beat(12)9
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)8.3%
Revenue beat(2)1
Avg Revenue beat(2)1.71%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)3.56%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)9.64%
Revenue beat(8)4
Avg Revenue beat(8)0.88%
Revenue beat(12)6
Avg Revenue beat(12)-0.75%
Revenue beat(16)10
Avg Revenue beat(16)0.4%
PT rev (1m)0%
PT rev (3m)14.29%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)3.18%
EPS NY rev (3m)7.13%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 14.81 | ||
| P/S | 1.58 | ||
| P/FCF | 5.34 | ||
| P/OCF | 4.34 | ||
| P/B | 1.14 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)1.76
EY8.35%
EPS(NY)1.42
Fwd EY6.75%
FCF(TTM)3.95
FCFY18.74%
OCF(TTM)4.85
OCFY23.03%
SpS13.36
BVpS18.5
TBVpS5.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.1% | ||
| ROCE | 8.76% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 13.42% | ||
| OM | 17.45% | ||
| PM (TTM) | 5.68% | ||
| GM | 70.96% | ||
| FCFM | 29.57% |
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-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.87 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 62.83% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.75% | ||
| Profit Quality | 520.36% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.9 |
F-Score5
WACC7.42%
ROIC/WACC0.83
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)-25.74%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-16.36%
EPS Next Y-41.07%
EPS Next 2Y-22.66%
EPS Next 3Y-14.16%
EPS Next 5Y-5.13%
Revenue 1Y (TTM)-17.69%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-23.71%
Revenue Next Year-24.21%
Revenue Next 2Y-13.65%
Revenue Next 3Y-8.71%
Revenue Next 5Y-5.94%
EBIT growth 1Y-12.33%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-15.35%
EBIT Next 3Y34.71%
EBIT Next 5YN/A
FCF growth 1Y-8.58%
FCF growth 3Y-12.23%
FCF growth 5Y-12.16%
OCF growth 1Y-9.28%
OCF growth 3Y-10.04%
OCF growth 5Y-10.11%