NasdaqGS:INOV

Stock Analysis Report

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Market Cap

US$5.1b

Last Updated

2021/06/13 23:09 UTC

Data Sources

Company Financials +

Executive Summary

Inovalon Holdings, Inc. provides cloud-based platforms for data-driven healthcare. More Details


Snowflake Analysis

Reasonable growth potential with proven track record.


Similar Companies

Share Price & News

How has Inovalon Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INOV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: INOV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

INOV

3.1%

US Healthcare Services

0.8%

US Market


1 Year Return

81.5%

INOV

33.9%

US Healthcare Services

44.4%

US Market

Return vs Industry: INOV exceeded the US Healthcare Services industry which returned 33.9% over the past year.

Return vs Market: INOV exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

INOVIndustryMarket
7 Day3.8%3.1%0.8%
30 Day6.8%12.5%3.0%
90 Day19.6%-0.5%4.4%
1 Year81.5%81.5%34.1%33.9%46.7%44.4%
3 Year206.5%206.5%117.9%116.3%60.3%50.4%
5 Year93.9%93.9%244.8%240.8%128.3%102.8%

Long-Term Price Volatility Vs. Market

How volatile is Inovalon Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Inovalon Holdings undervalued compared to its fair value and its price relative to the market?

151.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INOV ($32.8) is trading above our estimate of fair value ($31.91)

Significantly Below Fair Value: INOV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INOV is poor value based on its PE Ratio (151.3x) compared to the US Healthcare Services industry average (110.8x).

PE vs Market: INOV is poor value based on its PE Ratio (151.3x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: INOV is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: INOV is overvalued based on its PB Ratio (7x) compared to the US Healthcare Services industry average (6.8x).


Future Growth

How is Inovalon Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

41.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INOV's forecast earnings growth (41.9% per year) is above the savings rate (2%).

Earnings vs Market: INOV's earnings (41.9% per year) are forecast to grow faster than the US market (15.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: INOV's revenue (11.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: INOV's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INOV's Return on Equity is forecast to be low in 3 years time (16.3%).


Past Performance

How has Inovalon Holdings performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INOV has high quality earnings.

Growing Profit Margin: INOV's current net profit margins (4.7%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: INOV's earnings have declined by 30.3% per year over the past 5 years.

Accelerating Growth: INOV's earnings growth over the past year (129.2%) exceeds its 5-year average (-30.3% per year).

Earnings vs Industry: INOV earnings growth over the past year (129.2%) exceeded the Healthcare Services industry 26.9%.


Return on Equity

High ROE: INOV's Return on Equity (4.6%) is considered low.


Financial Health

How is Inovalon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: INOV's short term assets ($330.2M) exceed its short term liabilities ($152.3M).

Long Term Liabilities: INOV's short term assets ($330.2M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: INOV's debt to equity ratio (129.2%) is considered high.

Reducing Debt: INOV's debt to equity ratio has increased from 37% to 129.2% over the past 5 years.

Debt Coverage: INOV's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: INOV's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Inovalon Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate INOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate INOV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Keith Dunleavy (51 yo)

7.42yrs

Tenure

US$211,827

Compensation

Dr. Keith R. Dunleavy, M.D., has been the Chairman of Inovalon Holdings, Inc. since 2006 and its Chief Executive Officer since 1998 and is its Founder. Dr. Dunleavy is responsible for the overall execution...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD211.83K) is below average for companies of similar size in the US market ($USD6.52M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: INOV's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: INOV's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Inovalon Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inovalon Holdings, Inc.
  • Ticker: INOV
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$5.113b
  • Shares outstanding: 155.89m
  • Website: https://www.inovalon.com

Number of Employees


Location

  • Inovalon Holdings, Inc.
  • 4321 Collington Road
  • Bowie
  • Maryland
  • 20716
  • United States

Listings


Biography

Inovalon Holdings, Inc. provides cloud-based platforms for data-driven healthcare. It operates Inovalon ONE Platform, an integrated, real-time cloud native platform that interconnect with the healthcare ec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 23:09
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.