NasdaqGS:INOV

Stock Analysis Report

Executive Summary

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare.


Snowflake Analysis

Reasonable growth potential with questionable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

INOV

2.4%

US Healthcare Services

-4.1%

US Market


1 Year Return

31.0%

INOV

16.3%

US Healthcare Services

-14.9%

US Market

Return vs Industry: INOV exceeded the US Healthcare Services industry which returned 16.3% over the past year.

Return vs Market: INOV exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

INOVIndustryMarket
7 Day2.4%2.4%-4.1%
30 Day-21.2%-4.3%-19.1%
90 Day-13.4%-2.4%-23.4%
1 Year31.0%31.0%16.7%16.3%-13.2%-14.9%
3 Year28.5%28.5%62.8%61.9%10.7%3.5%
5 Year-44.0%-44.0%37.6%36.3%28.5%14.5%

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?

313.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INOV ($15.94) is trading above our estimate of fair value ($12.33)

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 (313.6x) compared to the Healthcare Services industry average (39.6x).

PE vs Market: INOV is poor value based on its PE Ratio (313.6x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: INOV is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: INOV is overvalued based on its PB Ratio (3.6x) compared to the US Healthcare Services industry average (3.4x).


Next Steps

Future Growth

How is Inovalon Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

53.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INOV's forecast earnings growth (53.1% per year) is above the savings rate (1.7%).

Earnings vs Market: INOV's earnings (53.1% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: INOV's revenue (8.5% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: INOV's revenue (8.5% 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 (14.4%).


Next Steps

Past Performance

How has Inovalon Holdings performed over the past 5 years?

-57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INOV has high quality earnings.

Growing Profit Margin: INOV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: INOV's earnings have declined by -57.3% per year over the past 5 years.

Accelerating Growth: INOV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: INOV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare Services industry (23.3%).


Return on Equity

High ROE: INOV's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Inovalon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: INOV's short term assets ($257.2M) exceed its short term liabilities ($130.4M).

Long Term Liabilities: INOV's short term assets ($257.2M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: INOV's debt to equity ratio (135.6%) is considered high.

Reducing Debt: INOV had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: INOV's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: INOV's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: INOV has a low level of unsold assets or inventory.

Debt Coverage by Assets: INOV's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

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 payouts.

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

2.1yrs

Average management tenure


CEO

Keith Dunleavy (50yo)

6.25s

Tenure

US$210,325

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD210.33K) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Dunleavy
Chairman & CEO6.25yrsUS$210.33k0.39% $9.6m
Robert Wychulis
President5.92yrsUS$1.56m0.18% $4.4m
Jonathan Boldt
Chief Financial Officer2.08yrsUS$1.02m0.17% $4.1m
Jason Capitel
Chief Operating Officer2yrsUS$7.67m0.40% $9.9m
John Burgin
Chief Product Officer2.42yrsUS$1.39m0.28% $6.9m
Peter De Bock
Chief Administrative Officer1.17yrsno data0.10% $2.5m
George Price
Investor Relationsno datano datano data
Kim Collins
Senior Vice President of Corporate Marketing & Communicationsno datano datano data
Ingrid Olsen
Chief People Officer0.58yrno datano data
Eric Sullivan
Senior Vice President of Innovation & Data Strategiesno datano datano data

2.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: INOV's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Dunleavy
Chairman & CEO6.25yrsUS$210.33k0.39% $9.6m
William Teuber
Independent Director7.25yrsUS$250.01k0.098% $2.4m
Lee Roberts
Independent Director8.25yrsUS$250.01k0.077% $1.9m
Denise Fletcher
Independent Director8.25yrsUS$250.01k0.053% $1.3m
Mark Pulido
Non-Independent Director2yrsUS$231.26k0.22% $5.5m
William Green
Independent Director3.67yrsUS$250.01k0.061% $1.5m
André Hoffmann
Independent Director12.25yrsUS$250.01k12.45% $307.7m
Isaac Kohane
Independent Director1.25yrsno data0.0079% $196.3k

7.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: INOV's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INOV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


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$2.472b
  • Shares outstanding: 155.06m
  • Website: https://www.inovalon.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INOVNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 2015
IOVDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2015
IOVBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFFeb 2015

Biography

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 964,000 physicians; 519,000 clinical facilities; and approximately 264 million individuals and 42 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 03:15
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.