PREMIER INC-CLASS A (PINC)
US74051N1028 - Common Stock
We assign a fundamental rating of 5 out of 10 to PINC. PINC was compared to 113 industry peers in the Health Care Providers & Services industry. PINC scores excellent on profitability, but there are some minor concerns on its financial health. PINC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PINC was profitable.
PINC had a positive operating cash flow in the past year.
Each year in the past 5 years PINC has been profitable.
PINC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PINC's Return On Assets of 3.52% is fine compared to the rest of the industry. PINC outperforms 75.22% of its industry peers.
Looking at the Return On Equity, with a value of 6.09%, PINC is in the better half of the industry, outperforming 69.91% of the companies in the same industry.
PINC has a Return On Invested Capital of 7.13%. This is in the better half of the industry: PINC outperforms 73.45% 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 8.10%.
The last Return On Invested Capital (7.13%) for PINC is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.09% | ||
| ROIC | 7.13% |
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
Looking at the Profit Margin, with a value of 8.88%, PINC belongs to the top of the industry, outperforming 92.92% of the companies in the same industry.
PINC's Profit Margin has declined in the last couple of years.
PINC's Operating Margin of 19.91% is amongst the best of the industry. PINC outperforms 99.11% of its industry peers.
PINC's Operating Margin has declined in the last couple of years.
PINC has a better Gross Margin (65.96%) than 88.50% of its industry peers.
PINC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.91% | ||
| PM (TTM) | 8.88% | ||
| GM | 65.96% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PINC is destroying value.
The number of shares outstanding for PINC has been reduced compared to 1 year ago.
Compared to 5 years ago, PINC has less shares outstanding
Compared to 1 year ago, PINC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.60, 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 1.60, PINC is in line with its industry, outperforming 48.67% of the companies in the same industry.
The Debt to FCF ratio of PINC is 3.50, which is a good value as it means it would take PINC, 3.50 years of fcf income to pay off all of its debts.
PINC has a better Debt to FCF ratio (3.50) than 82.30% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that PINC is not too dependend on debt financing.
The Debt to Equity ratio of PINC (0.31) is better than 61.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.94
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PINC should not have too much problems paying its short term obligations.
PINC has a Current ratio of 1.00. This is in the lower half of the industry: PINC underperforms 74.34% of its industry peers.
A Quick Ratio of 0.90 indicates that PINC may have some problems paying its short term obligations.
The Quick ratio of PINC (0.90) is worse than 71.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for PINC have decreased strongly by -13.49% 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)-13.49%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-37.04%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-24.61%
3.2 Future
PINC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
Based on estimates for the next years, PINC will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y-45.57%
EPS Next 2Y-24.5%
EPS Next 3Y-13.31%
EPS Next 5Y5.31%
Revenue Next Year-24.44%
Revenue Next 2Y-12.39%
Revenue Next 3Y-7%
Revenue Next 5Y3.11%
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
PINC is valuated reasonably with a Price/Earnings ratio of 10.30.
Based on the Price/Earnings ratio, PINC is valued cheaper than 92.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. PINC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 16.55, which indicates a correct valuation of PINC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PINC indicates a somewhat cheap valuation: PINC is cheaper than 73.45% of the companies listed in the same industry.
PINC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PINC is valued cheaply inside the industry as 89.38% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PINC indicates a rather cheap valuation: PINC is cheaper than 90.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.02 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
PINC has a very decent profitability rating, which may justify a higher PE ratio.
PINC's earnings are expected to decrease with -13.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.5%
EPS Next 3Y-13.31%
5. Dividend
5.1 Amount
PINC has a Yearly Dividend Yield of 3.69%. 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 3.16. PINC pays more dividend than 93.81% of the companies in the same industry.
PINC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
PINC has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PINC pays out 79.62% of its income as dividend. This is not a sustainable payout ratio.
DP79.62%
EPS Next 2Y-24.5%
EPS Next 3Y-13.31%
PREMIER INC-CLASS A
NASDAQ:PINC (11/19/2024, 11:19:12 AM)
22.455
+0.06 (+0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 16.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 6.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.91% | ||
| PM (TTM) | 8.88% | ||
| GM | 65.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.49%
EPS 3Y-1.1%
EPS 5Y
EPS Q2Q%
EPS Next Y-45.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-7.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y