IQVIA logged a -0.3% change during today's morning session, and is now trading at a price of $212.33 per share.
Over the last year, IQVIA logged a 4.0% change, with its stock price reaching a high of $241.86 and a low of $165.75. Over the same period, the stock underperformed the S&P 500 index by -12.0%. As of April 2023, the company's 50-day average price was $220.08. IQVIA Holdings Inc. engages in the provision of advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. Based in Durham, NC, the large-cap Health Care company has 87,000 full time employees. IQVIA has not offered a dividend during the last year.
The Company Has a Highly Leveraged Balance Sheet:
| 2018-02-16 | 2019-02-19 | 2020-02-18 | 2021-02-12 | 2022-02-16 | 2023-02-15 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $9,702 | $10,412 | $11,088 | $11,359 | $13,874 | $14,410 |
| Gross Margins | 35.0% | 35.0% | 34.0% | 34.0% | 33.0% | 35.0% |
| Operating Margins | 8% | 8% | 8% | 7% | 10% | 13% |
| Net Margins | 13.0% | 2.0% | 2.0% | 2.0% | 7.0% | 8.0% |
| Net Income (MM) | $1,277 | $259 | $191 | $279 | $966 | $1,091 |
| Net Interest Expense (MM) | -$339 | -$406 | -$438 | -$410 | -$369 | -$403 |
| Depreciation & Amort. (MM) | -$1,011 | -$1,141 | -$1,202 | -$1,287 | -$1,264 | -$1,130 |
| Earnings Per Share | $5.74 | $1.24 | $0.96 | $1.43 | $4.95 | $5.72 |
| EPS Growth | n/a | -78.4% | -22.58% | 48.96% | 246.15% | 15.56% |
| Diluted Shares (MM) | 223 | 208 | 200 | 195 | 195 | 191 |
| Free Cash Flow (MM) | $1,339 | $1,713 | $1,999 | $2,575 | $3,582 | $2,934 |
| Capital Expenditures (MM) | -$369 | -$459 | -$582 | -$616 | -$640 | -$674 |
| Net Current Assets (MM) | -$11,059 | -$11,721 | -$12,859 | -$13,194 | -$13,884 | -$14,591 |
| Long Term Debt (MM) | $10,122 | $10,907 | $11,545 | $12,384 | $12,034 | $12,595 |
| Net Debt / EBITDA | 5.18 | 5.16 | 5.23 | 5.14 | 3.98 | 3.87 |
IQVIA has weak revenue growth and a flat capital expenditure trend, weak operating margings with a positive growth rate, and flat EPS growth. In addition, we note irregular cash flows. Furthermore, the firm suffers from slimmer gross margins than its peers and a highly leveraged balance sheet.
The Market May Be Overvaluing IQVIA's Earnings and Assets:
IQVIA has a trailing twelve month P/E ratio of 38.4, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $11.62, the company has a forward P/E ratio of 18.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -0.0%. On this basis, the company's PEG ratio is -1321.85, which indicates that its shares are overpriced. Furthermore, IQVIA is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.76 is higher than the sector average of 4.16. The company's shares are currently trading 240.3% above their Graham number.
IQVIA Has an Analyst Consensus of Some Upside Potential:
The 20 analysts following IQVIA have set target prices ranging from $215.0 to $281.0 per share, for an average of $251.85 with a buy rating. As of April 2023, the company is trading -12.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
IQVIA has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 90.9% of the company's shares, and the insider ownership rate stands at 0.89%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $4,553,117,716.
