PREMIER INC-CLASS A (PINC)
US74051N1028 - Common Stock
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. PINC scores excellent on profitability, but there are some minor concerns on its financial health. 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's Return On Assets of 4.39% is fine compared to the rest of the industry. PINC outperforms 75.93% of its industry peers.
PINC has a better Return On Equity (7.45%) than 71.30% of its industry peers.
The Return On Invested Capital of PINC (6.48%) is better than 69.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PINC is in line with the industry average of 8.15%.
| 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
Looking at the Profit Margin, with a value of 11.41%, PINC belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Profit Margin of PINC has declined.
PINC's Operating Margin of 19.16% is amongst the best of the industry. PINC outperforms 99.07% of its industry peers.
PINC's Operating Margin has declined in the last couple of years.
PINC has a Gross Margin of 67.24%. This is amongst the best in 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for PINC is higher compared to a year ago.
2.2 Solvency
PINC has an Altman-Z score of 1.46. This is a bad value and indicates that PINC is not financially healthy and even has some risk of bankruptcy.
PINC has a Altman-Z score of 1.46. This is in the lower half of the industry: PINC underperforms 61.11% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.66, PINC is in the better half of the industry, outperforming 78.70% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that PINC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, PINC is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.85
WACC7.62%
2.3 Liquidity
PINC has a Current 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.
With a Current ratio value of 1.09, PINC is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
A Quick Ratio of 1.09 indicates that PINC should not have too much problems paying its short term obligations.
The Quick ratio of PINC (1.09) is worse than 65.74% of its industry peers.
| 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 -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.
PINC shows a decrease in Revenue. In the last year, the revenue decreased by -4.87%.
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)-13.49%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-37.04%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-24.61%
3.2 Future
PINC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.48% yearly.
PINC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.47% yearly.
EPS Next Y-44.84%
EPS Next 2Y-24.06%
EPS Next 3Y-12.79%
EPS Next 5Y-7.48%
Revenue Next Year-24.29%
Revenue Next 2Y-12.22%
Revenue Next 3Y-6.94%
Revenue Next 5Y-5.47%
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
The Price/Earnings ratio is 9.98, which indicates a very decent valuation of PINC.
Based on the Price/Earnings ratio, PINC is valued cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, PINC is valued rather cheaply.
The Price/Forward Earnings ratio is 15.86, which indicates a correct valuation of PINC.
71.30% of the companies in the same industry are more expensive than PINC, based on the Price/Forward Earnings ratio.
PINC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PINC is valued cheaper than 88.89% of the companies in the same industry.
88.89% of the companies in the same industry are more expensive than PINC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 7.38 |
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 -12.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.06%
EPS Next 3Y-12.79%
5. Dividend
5.1 Amount
PINC has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, PINC pays a better dividend. On top of this PINC pays more dividend than 95.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, PINC pays a better dividend.
| 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.
PINC has decreased its dividend 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-24.06%
EPS Next 3Y-12.79%
PREMIER INC-CLASS A
NASDAQ:PINC (12/20/2024, 8:00:00 PM)
After market: 21.22 -0.54 (-2.48%)21.76
+0.25 (+1.16%)
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-6.81%
Ins Owners0.71%
Ins Owner Change2.09%
Market Cap2.09B
Analysts52
Price Target22.06 (1.38%)
Short Float %7.77%
Short Ratio9.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)10.9%
PT rev (3m)5.2%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-54.44%
EPS NY rev (1m)1.34%
EPS NY rev (3m)6.25%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-29.45%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 15.86 | ||
| P/S | 1.64 | ||
| P/FCF | 10.22 | ||
| P/OCF | 7.41 | ||
| P/B | 1.07 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)2.18
EY10.02%
EPS(NY)1.37
Fwd EY6.31%
FCF(TTM)2.13
FCFY9.79%
OCF(TTM)2.94
OCFY13.5%
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 | 1.46 |
F-Score4
WACC7.62%
ROIC/WACC0.85
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)-13.49%
EPS 3Y-1.1%
EPS 5Y-2.13%
EPS Q2Q%-37.04%
EPS Next Y-44.84%
EPS Next 2Y-24.06%
EPS Next 3Y-12.79%
EPS Next 5Y-7.48%
Revenue 1Y (TTM)-4.87%
Revenue growth 3Y-7.86%
Revenue growth 5Y2.03%
Sales Q2Q%-24.61%
Revenue Next Year-24.29%
Revenue Next 2Y-12.22%
Revenue Next 3Y-6.94%
Revenue Next 5Y-5.47%
EBIT growth 1Y0.71%
EBIT growth 3Y1.43%
EBIT growth 5Y-6.17%
EBIT Next Year-15.96%
EBIT Next 3Y72.87%
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%